News New laws from January 2018: tax, child benefit, Hartz IV

News New laws from January 2018: tax, child benefit, Hartz IV

Monday, 01.01.18 , written by Julia Meier As of January 2018, new laws will come into force that will allow parents, workers and retirees in particular to enjoy more money. The basic and child allowance, the child benefit rule rate and the disability pension increase. Other relevant innovations also exist in terms of pension, maintenance entitlement and social assistance benefits. >

Rente, Kindergeld, Hartz-IV: Das bringen die neuen Gesetze ab Januar 2018 New laws from January 2018: Good prospects for families and pensioners

  • New laws promise financial relief from January 2018, especially for families, Hartz IV recipients and retirees.
  • The basic allowance is raised to 9,000 euros for singles and 18,000 euros for couples.
  • Also in the case of occupational pensions, the state is starting to pay off from January 2018.

Whether parents, welfare recipients or pensioners: The new year promises people more money. As of 1 January 2018, changes such as raising the children’s allowance by 72 euros per year, the child benefit rate by two euros per month or the basic allowance are on the agenda. In addition, pensioners and welfare recipients can benefit from the innovations.

New laws from January 2018 provide financial relief for families and single parents

In addition to the increase in the basic allowance to 9,000 euros, on which workers can look forward to January, there are also relieving for parents innovations. The most important are probably that the annual child allowance increased by 72 euros and the monthly child allowance is increased by two euros.

Even single parents can look forward to an increase in the maintenance payment. Because from 1 January 2018, the minimum maintenance rate increases by up to seven euros per month. The exact surcharge depends on the age of the child and the net income of the debtor. For example, the paying parent with a monthly net income of € 2,301 has to cede a sum of € 439 to the child between the ages of six and eleven.

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Rule set for social assistance benefits increases

As of 1 January 2018, social assistance recipients will also be subject to changes in monthly benefits. Thus, the Hartz IV rule set for single persons increases from previously 409 euros to 416 euros per month. For couples, the rule rate increases to 374 euros. Depending on their age, children can expect a subsidy of up to five euros, and thus receive up to € 316 a month.

Employees will benefit from new pension laws from January 2018

Good prospects for all employees: As the statutory pension insurance is well positioned, all employees expect a reduction of the pension contribution by 0.1 percentage points from January 2018 onwards. If an employee earns 3,000 euros a month , this means a monthly reduction of 1.50 euros.

For all those who can not work due to illness or have limited access from January 2018 onwards and have to retire early, from January on, the compensation period for the reduced earning capacity pension will be extended by three months. If, for example, an employee does not have the opportunity to fully pursue his / her profession after the age of 45, he / she is currently provided with the calculation of the disability pension as if he had worked fully until the age of 62. This attribution time increases with the changes to January 1, 2018 by three months. By 2024, the value will gradually increase by three years, ie to the age of 65.

For new pensioners, this means, in the long term, a significant increase in pension entitlements in the event of a reduction in earning capacity.

Occupational pensions should become more attractive from 2018

With the beginning of the year, the company pension for small and medium-sized enterprises should be designed and promoted more appealing. This happens, for example, through the promotion of low-income earners . For this purpose, employers receive a tax allowance of 30 percent, which is offset against payroll tax if they support employees with low incomes in occupational pensions.

In order to convince more and more people of occupational pensions, the adjustments in the law also contribute to relieving employees through allowances of up to € 200 in the future if they are dependent on the basic pension in old age .

East-West Pensions: Seven Steps to Social Unity

From 2025, the pension will be calculated the same throughout Germany. This is the goal of the East-West pension adjustment , which the Federal Council approved in early 2017. Because the pension system is the only social system in Germany that is not uniform in East and West.

So it is all the more gratifying that almost 30 years after the fall of the Berlin Wall, the gradual process of alignment is starting. From July 2018 to July 2024, the East Rentenwert will be adjusted in seven steps to the West Rentenwert. In the coming July, the eastern value is thus increased from the previous 94.1 percent to 95.8 percent of the western value. This is followed by an annual adjustment of 0.7 percentage points until the 100 percent are fully achieved.

From January 2025 onwards, the pension adjustment will finally take place throughout Germany on the basis of the overall German wage development.