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BENEFITS

Sick benefit claims plateau after falls

The number of Swedes on long-term sick benefits has stabilized after seven years of successive falls, according to official figures released on Tuesday.

The average Swede was off work sick for 6.1 days last year – including both those on long-term leave and those taking occasional sick days. This contrasts with a figure of 15.9 days per year in 2003. The Swedish Social Insurance Agency (Försäkringskassan) says it expects the figure to drop to 5.1 days by 2014.

“The room for reductions is starting to disappear. There is a lowest possible level. People do get sick and lose their ability to work,” said Mathias Johansson, analyst at the agency.

Johansson said the falls were partly due to changes in public attitudes to sick leave.

“A changed attitude in society has contributed to the fall. This applies to everything from the debate in the media to how politicians and citizens view sick leave.”

The fact that the Social Insurance Agency was brought under centralized national control in 2004-2005 has also helped bring figured down, according to the report. Previously, regional agencies applied varying standards when judging whether people had the right to be off work.

Recent reforms, introduced in 2008, which limited the period for which it was possible be on sick leave, were also thought to have kept the numbers down, although it was so far unclear to what extent this had affected the figures.

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TAXES

How Germany plans to increase child benefits and provide tax relief

Germany's governing coalition has agreed to increase child benefits (Kindergeld) and offer tax relief. Here's what you need to know.

How Germany plans to increase child benefits and provide tax relief
Photo: DPA

The cabinet of the coalition government, made up of Angela Merkel's Christian Democrats and the centre-left Social Democrats (SPD) agreed Wednesday to increase child benefit – or Kindergeld – by €15 per month next year.

The move is part of the Family Relief Act (Familienentlastungsgesetz), which aims to take the financial burden off middle and lower class families. It's part of an overall package which is setting the federal government back €9.8 billion over 2019 and 2020.

The child benefit is to rise to €219 per month on January 1st 2021 for the first and second child, to €225 per month for the third child, and to €250 from the fourth child onwards.

According to the bill, families will also receive tax relief. for example, the tax-free child allowance (Kinderfreibetrag) is to be raised by more than €500 to €8,388.

In total, families would be relieved of around €12 billion per year, said Finance Minister Olaf Scholz of the centre-left Social Democrats (SPD).

“This is good news for all families and children in Germany,” he said.

READ ALSO: Kindergeld – what you need to know about Germany's child support payments

 

Families are also set to benefit from a cash boost due to the coronavirus pandemic.

The planned Kinderbonus of €300 per child is to be transferred in two instalments of €150 each in September this year, and October. It will be paid to parents alongside Kindergeld.

Explained: How does Germany's Kinderbonus coronavirus payment work?

Boost for taxpayers

Meanwhile, all taxpayers in Germany are to receive a boost. The basic tax-free allowance will be increased from €9,408 to €9,696 from next year.

Meanwhile, the limit, from which the highest tax rate of 42 percent must be paid, will rise from €57,052 to an annual income of €57,919. A further increase of the income limits is planned for 2022.

However, all changes agreed by the cabinet must still be approved by the Bundestag and Bundesrat before they can come into force.

READ ALSO: Here's how Germany plans to reform 'Elterngeld' for new parents

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