Wages, taxes, pensions
If you have more money in your wallet in 2022
Some people are likely to have more money in their wallets by 2022
© Christian Horz / Getty Images
Higher minimum wages, pension increases, tax relief: 2022 will bring financial improvements for some citizens. Here are eight changes that will make more money in your wallet.
What the new federal government will implement is only rudimentary. But some of the financial changes that citizens will face in 2022 are already certain. Here are eight legal or other changes that can make more money in your wallet. Further innovations for consumers can be found here.
1. More minimum wages
There will definitely be more money in 2022 for everyone who earns the statutory minimum wage. On January 1, 2022, this will initially increase from EUR 9.60 to EUR 9.82 per hour. But the big leap is still to come, because the new federal government has promised a one-time increase to 12 euros. It is not yet clear when exactly this will take place. If it takes longer, the already decided increase to 10.45 euros will take effect on July 1, 2022.
2. Higher industry minimum wages
Not only is the general statutory minimum wage rising. The minimum wages regulated by collective agreements in individual sectors also ensure higher salaries. On January 1, the minimum wages in the electrical trade, in the meat industry and for employees in training and further education will rise. Building cleaners and money couriers also get a little more at the beginning of the year. In April 2022, the minimum wages for elderly care will rise. In the further course of the year, temporary workers, scaffolding workers, journeyman roofers and stonemasons will follow. Some of the industry minimum wages are below 12 euros, so that employees benefit again from the general increase.
3. More money for trainees
Apprentices can also look forward to a higher minimum remuneration. For the 2022 apprenticeship year, the “minimum wage for trainees” will rise from 550 euros to 585 euros per month in the first year. In the second year of training there is at least plus 18 percent, in the third plus 35 percent and in the fourth plus 40 percent compared to the starting wage. In some industries, the collective agreements for trainees provide for higher wages.
4. More pension
The 21 million retirees can expect more money by July 1, 2022. However, the increase is lower than originally announced, as the new government wants to reactivate the so-called catch-up factor. Labor Minister Hubertus Heil expects an increase of 4.4 percent for West Germany, East German pensioners can expect 5.1 percent more. That is 0.8 percentage points less than previously stated.
5. A little more Hartz IV
In January 2022, the rates for unemployment benefit II, social assistance and basic security in old age will be adjusted, albeit only slightly. A single adult then receives 449 euros a month – three euros more than before. The rates for children and adolescents are only increased by two to three euros. It will be more exciting how the traffic light government will design the new “citizens’ money”, which is to replace Hartz IV. Overall higher benefits are not mentioned in the coalition agreement, but better additional earning opportunities are planned. In addition, the examination of assets and apartment size is to be suspended for two years.
6. More net for taxpayers
All income taxpayers benefit from a right shift in the tax rate. The income limits for tax rates rise by 1.17 percent. This is intended to compensate for the “cold progression” (even if the inflation rates are currently significantly higher). In addition, the basic income tax allowance increases, up to which no tax has to be paid. For single people, the tax-free income increases from 9,696 to 9,984 euros; for couples, the amount is twice as high.
7. Corona bonus tax-free
Anyone who receives a corona bonus from their employer because of special burdens will receive it tax-free until the end of March 2022. The tax exemption applies up to 1500 euros. Anyone who has already received a corona bonus in 2020 must add it to the total.
8. Subsidy for company pension
Anyone who has a company pension in the form of deferred compensation can in any case receive a subsidy from the employer from 2022. The obligation to provide a subsidy of 15 percent will also be extended to contracts concluded before 2019.