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Germany to raise Hartz IV unemployment benefit by just three euros

People who receive Hartz IV benefits in Germany will receive an increase in the monthly benefit - but for most people it will be just €3 more per month.

Published: 15 September 2021 16:23 CEST
Germany to raise Hartz IV unemployment benefit by just three euros
Fruit and veg on sale at a supermarket in Berlin. Photo: picture alliance/dpa | Fabian Sommer

The Hartz IV rates will go up slightly from January 22nd, the federal cabinet decided on Wednesday. 

The standard rate for single adults who are Hartz IV welfare recipients will go up by €3 to €449, while the rate for young people aged 14 to 17 will also rise by €3 to €376. Adults under 25 without their own household will receive €360 – also an increase of €3 per month.

The rate for children up to five years-old in a Hartz IV household will be €285 euros per month in the new year instead of the previous €283. For six to 13-year-olds, the rate will also increase by €2 to €311. 

Hartz IV – or Unemployment benefit II – is a controversial type of long-term welfare assistance, which requires recipients to fulfil a specific set of conditions, like active job hunting or attending education classes – in order to receive a monthly payment and housing assistance. 

EXPLAINED: Why are Hartz IV benefits so controversial in Germany?

Why is the increase so low?

The adjustment of the Hartz IV standard rates is based on the wage and price development of the past year.

That means the benefits are based on 2020 – when wages fell overall by 4.7 percent in the second quarter alone due to the Covid crisis. 

Millions of people were on Kurzarbeit (reduced working hours), and many lost their job. At the same time, the German government cut the value-added tax (VAT) to 16 percent for the second half of 2020. This means that prices effectively fell during this period.

READ ALSO: 10 golden rules to know if you lose your job in Germany

From January 1st this year, single adults received a €14 increase in Hartz IV payments, while the rate for young people aged between 14 and 17 went up by €45. For children up to the age of five living in a Hartz IV household, the benefit increased by €33. 

What’s the reaction?

The move by the SPD-led social affairs ministry has been slammed by opposition parties, who say the increases do not reflect the rising cost of living in Germany. 

“Raising the standard rates by a measly €3 a month is little more than a pittance,” said Left Party parliamentary group vice chairwoman Susanne Ferschl.

“Rising consumer prices are causing the money to evaporate faster than it’s in the account.”

Ferschl said the Hartz IV standard rate should be increased to €658 as an “immediate measure”.

Green Party faction leader Katrin Göring-Eckardt criticized the size of the increase as “irresponsible”. Green Party social policy expert Sven Lehmann called for an increase in rates of at least €50 “as a first step.”

The German Federation of Trade Unions (DGB) and the social association VdK also criticised the new Hartz IV rates, which will come into force from January next year. 

“The planned increase of only €3 is significantly below the price trend,” said DGB board member Anja Piel to the newspapers of the Funke Mediengruppe.

VdK President Verena Bentele said the government was once again cutting back on those “who are least able to defend themselves.”

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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