German FAZ: Why working is often not worth it007409

If you receive citizen’s benefit and at the same time earn wages from a part-time job, it is often hardly worth it to work more. Because beyond 1,200 euros in monthly wages (1,500 euros for families), every additional euro earned is deducted one-to-one from the citizen’s allowance until it dwindles to zero. For families with earnings just above the citizen’s allowance, things can get even more annoying since the housing benefit reform of 2023: If they receive housing benefit and the so-called child allowance instead, then it can happen that more than 100 percent of their additional wages are offset against this. More wages then even lead to less income, and the additional work is actually penalized financially.
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