Current innovations in taxes, pensions and minimum wage: Financial experts expect a pension increase of over three percent and an increase in the legal minimum wage to 12.41 euros from July. Further changes to taxes and social security contributions are to be expected.

Current innovations in taxes, pensions and minimum wage: Financial experts expect a pension increase of over three percent and an increase in the legal minimum wage to 12.41 euros from July. Further changes to taxes and social security contributions are to be expected.

According to a report from www.mdr.de,

From July, around 21 million pensioners in Germany can look forward to a pension increase of over three percent. The statutory minimum wage will rise to 12.41 euros at the turn of the year, and citizens' allowance will also increase by twelve percent. There are also other innovations relating to taxes, social security contributions and maintenance. The contribution assessment limits for health and pension insurance are also increasing, as are the basic tax allowance, the child tax allowance and the top tax rate for income tax.

The increase in the contribution assessment limits in statutory health insurance (GKV) to 62,100 euros annually and in general pension insurance to 7,450 euros per month (in the new federal states) will probably lead to higher income in these two insurance branches. This could mean that insured people with higher incomes have to pay a larger contribution, while low-income earners are relieved. The increase in the basic tax allowance, the child tax allowance and the top tax rate leads to tax relief for many citizens and can strengthen domestic demand.

The increase in pensions and citizens' money will mean that pensioners and needy citizens have more purchasing power and are therefore expected to contribute to strengthening consumption. This could have a positive impact on the economy. However, higher spending on pensions and social benefits could also lead to higher government budget spending.

Increasing the statutory minimum wage and the minimum training allowance for trainees will lead to higher wage costs for companies, especially in sectors with many part-time employees and trainees. This could lead to price increases and a possible reduction in employment in these industries.

Overall, the measures adopted are likely to lead to a redistribution of income and have various impacts on the labor market, the economy and social systems. In particular, the adjustments to the contribution assessment limits and tax rates will help to expand social security and increase state revenue.