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WHAT CHANGES IN GERMANY

Everything that changes in Germany in July 2022

From energy relief measures and an increase in the minimum wage to rules for making it easier to cancel contracts online, here's what's changing in Germany this July.

Published: 28 June 2022 15:16 CEST
Updated: 1 July 2022 09:36 CEST

A cuckoo clock in Schonach, Baden-Württemberg. Photo: picture alliance/dpa | Philipp von Ditfurth

No more free rapid Covid tests for all

Taxpayer-funded Covid-19 rapid tests or Bürgertests are no longer free for everyone. Under the Health Ministry’s plans, the tests will cost €3, however, some groups of people will still get them for free.

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Financial relief for families

As part of the government’s energy relief package, the Kinderbonus will be paid out to families in July. Each child entitled to child benefit will receive a one-time bonus of €100.

Due to inflation and rapidly rising food prices, recipients of social assistance benefits, Hartz-IV and asylum benefits will also get a cash boost in July. They will receive two payments of €100 each and their children €20 each.

€9 ticket and fuel tax cut continues

Germany’s €9 monthly public transport ticket offer continues until the end of August so people will be able to buy a ticket and use it in July. Similarly, the fuel tax cut is in force until the end of August.

A Covid test centre in Rostock. Rapid tests will no longer be free for all from July. Photo: picture alliance/dpa | Bernd Wüstneck

End of the EEG levy

The Russian war on Ukraine is causing energy prices to rocket upwards. To help people in Germany deal with the price hikes, the coalition government in Germany has decided to abolish the Renewable Energy Act (EEG) charge.

The EEG levy is a green tax that has been used to fund investment in solar and wind power as part of the energy transition. Until January 1st, 2022, it added 6.5 cents per kilowatt hour to people’s energy bills, but at the start of the year, it was reduced to 3.72 cents per kilowatt hour.

From July people in Germany will no longer have to pay the levy. However, It’s not clear whether this will really save consumers much money, due to energy costs going up significantly.

Increase in the minimum wage

As Chancellor Olaf Scholz of the Social Democrats promised before the German federal election last year, the minimum wage is being raised this year. It is to be gradually increased to €12 by October 2022. In January the minimum wage rose to €9.82, in July it will rise to €10.45.

More financial relief measures come into force in Germany in July. Photo: picture alliance/dpa | Jonas Walzberg

Pension increase

People who receive pensions in Germany will get more money from July. In the states that formerly comprised West Germany, pensions will rise by 5.35 percent, in the former East German states by 6.12 percent. The German pension insurance fund says it is one of the highest adjustments since the introduction of pension insurance.

School holidays continue

More schools in German states are finishing up for the summer. After schools in North Rhine-Westphalia broke up in June, Schleswig-Holstein and Mecklenburg-Western Pomerania are next, followed by Hamburg, Berlin and Brandenburg on the Wednesday after (July 6th).

The southern states of Baden-Württemberg and Bavaria will be the last to go off on their school holidays – at the end of July and on August 1st respectively.

Pfand scheme extended

From July, a 25-cent deposit or Pfand will be charged on more plastic bottles and drink cans. Due to the amendment of the Packaging Act, bottled fruit drinks such as orange juice as well as mixed alcoholic beverages will have to be recycled in future. Under plans to extend the scheme further, milk is set to be charged a Pfand from 2024.

The regulation has been in effect since January 2022, but retailers were granted a transitional period until July 2022 to implement the change.

Get rid of old electrical appliances

From July, many large supermarkets and discount chains – including Aldi, Rewe and Edeka – will accept old electrical goods. People will be able to hand in products such as old mobile phones, electric razors, kettles and toasters free of charge.

A kettle stands in a kitchen. Get rid of your old appliances at German supermarkets soon. Photo: picture alliance/dpa/dpa-tmn | Andrea Warnecke

Driving licence deadline approaching

German people born between 1953 and 1958 and who have a paper driving licence issued before 1999 have to exchange it for a digital one or face a warning fine. The deadline for the exchange was originally planned for January, but due to the pandemic, it was extended to July 19th.

The cost of the exchange is €25.50. To apply for the EU driving licence, a valid identity card, the old driving licence and a biometric passport photo is needed. There is no extra driving or health test involved.

New rent law comes into force

As of July, tenants and landlords will have to provide information on rental prices if they are asked to by authorities. This is to enable a comparison of rents, especially in large cities. Tenants and landlords will be selected at random. Those who refuse to provide information can face a fine of up to €5,000.

Extension of tobacco tax

At the start of 2022, tobacco tax was increased and the price of cigarettes went up. As of July, this also applies to shisha tobacco and liquids for e-cigarettes.

Cancellations of contracts online to become easier

Since the beginning of the year, consumers in Germany have been able to terminate rolling contracts more easily. And people who have concluded a contract online should also be able to terminate it online in future under new laws.

From July onwards, firms have to include a cancellation button on websites where contracts can be concluded. If this is not the case, the consumer has the right to terminate the contract without notice.

Cost of sending packages goes up

Anyone who wants to send parcels or packages with DHL from July onwards will unfortunately have to dig further into their pockets. The rises apply to domestic and international shipments. DHL said the price hikes are because of the rise in transport, delivery and labour costs.

Tax deadline extended

One last point – self-submitted tax returns in Germany were due to be sent to the tax office by the end of July. However, the deadline has been extended until the end of October, giving people more time.

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Everything that changes in Germany in August 2024

Profession experience to be formally recognised

On August 1st, a new piece of legislation designed to make on-the-job training more attractive and support people without formal qualifications will enter into force.

Under the new Vocational Validation and Digitalisation Act, people without a university degree or other professional qualifications will be able to get their work experience certified as a qualification.

Applicants must have worked in a relevant field 1.5 times the duration of the equivalent training – for a three-year university course, that would equate 4.5 years of professional experience – and be at least 25 years old.

The validation process will be widely available from January 2025 through chambers of industry, commerce, and crafts.

Changes to train routes

From August 16th to December 14th, ICE journeys between Hamburg and Berlin will take 45 minutes longer due to a diversion via Stendal. This will bring the journey up to 2.5 hours.

Only one train per hour will run between the two cities during this time, and the EC trains to Dresden and Prague will begin and end in Berlin instead of Hamburg.

Due to construction work, the night trains from Berlin to Paris and Brussels will be cancelled between August 12th to October 25th. These new connections were added to the rail schedule back in December, travelling via Halle, Erfurt and Mannheim.

New rules on cannabis consumption for drivers

Following the legalisation of cannabis possession and the introduction of licensed cannabis clubs in Germany, the government is introducing new laws to regulate driving under the influence.

From August this year, authorities will be entitled to check the level of THC – the psychoactive compound in weed – contained in drivers’ bloodstreams. According to the new law, this should be no more than 3.5 nanograms per millilitre.

Exceeding this limit can result in fines up to €3,000, with higher fines if alcohol is also involved. For new drivers and drivers under 21 years old, any level of THC is banned.

Slower postal deliveries

Starting in August, letters sent to recipients in Germany can take up to three working days to arrive, rather than the previous two. These changes were set out in the government’s recent Postal Modernisation Act, which is due to come into force on August 1st.

A truck drives onto the premises of the Deutsche Post DHL branch in the Anderten district of Hannover.

A truck drives onto the premises of the Deutsche Post DHL branch in the Anderten district of Hannover. Photo: picture alliance/dpa | Moritz Frankenberg

In addition to companies like DHL and Hermes, the government is also planning to allow more competition on the parcel delivery market in the hopes of improving the service for consumers. However, new companies on the market must still comply with German labour laws such as the minimum wage and maximum working hours.

When packages weigh more than 10kg or 20kg, they will need to be labelled accordingly.

Young people gain right to an apprenticeship

From August 1st, more young people will have the right to state-supported vocational training if they are learning disabled, socially disadvantaged, or live in areas with insufficient training opportunities.

Employers who offer training and apprenticeships will receive a bigger bonus of €3,000 for transitioning trainees into company-based training.

In addition, vocational colleges will be permitted to carry out more of their training and examinations digitally.

The new apprenticeship guarantee builds on a previous piece of legislation designed to encourage young people into vocational training programmes.

The older law provides for trainees and interns to be supported with accommodation and travel costs so that they can complete an apprenticeship in another town or city.

According to Labour Minister Hubertus Heil (SPD), one of the major problems facing skilled trades in Germany is not the lack of apprenticeship places, but the lack of applicants to fill them.

More generous grants for students

This August, BAföG – Germany’s financial aid scheme for students – will increase in time for the next semester.

The basic monthly allowance will rise from €452 to €475, while the housing allowance for students living away from home will increase from €360 to €380 Euros.

Health and care insurance subsidies will also be adjusted to account for the higher costs.

Students at Heidelberg University sit in a lecture hall. Photo: picture alliance / Uwe Anspach/dpa | Uwe Anspach

Additionally, students from very low-income families will receive an initial grant of €1,000 when starting a course at a university.

The income threshold for students’ additional earnings will also increase to €538 per month.

A new “flexibility semester” is set to come into force, allowing students to claim their BAföG grants for an additional semester if they need longer to finish their studies.

In addition, an extended deadline for changing study programs will be introduced.

Dozens of Galleria branches close

Due to ongoing insolvency proceedings, nine of Galeria’s remaining 92 stores will close on August 31st this year.

According to a statement on the department store’s website, the affected stores include: Galeria Augsburg, Galeria Berlin Ringcenter, Galeria Berlin Tempelhof, Galeria Chemnitz, Galeria Essen, Galeria Leonberg, Galeria Regensburg, Galeria Trier and Galeria Wesel.

Around 1,400 of Galeria’s 12,800 staff are likely to lose their jobs following the closures.

Higher wages for trainee painters and stonemasons

Apprentices in the painting and varnishing trades are set to see their wages go up this August.

First-year apprentices will earn 800 per month, second-year apprentices will earn €885, and third-year apprentices will earn €1,050.

Young people training to be stonemasons will also get an income boost, earning €925 per month in the first year, €1,025 in the second year and €1,175 in their third year of training.

An apprentice stonemason works on a project.

An apprentice stonemason works on a project. Photo: picture alliance/dpa | Martin Schutt

Gender self-recognition becomes easier

On August 1st, the government’s new Self-Determination Act, which broadens rights for trans people, enters into force in Germany.

The self-determination act makes it easier for someone in Germany to change their gender entry and first name simply by submitting a declaration to the registry office. There is no longer a requirement for a medical certificate, expert opinion or court order, as previously mandated under the 1980 Transsexual Act.

The self-determination act only affects the process for changing genders with the registry. It does not make any provisions for physical interventions, such as hormone therapies or gender reassignment surgery.

Subsidies for green energy systems open up

In line with the government’s Heating Bill, which encourages households to swap out old heating systems for eco-friendly ones, landlords, single-family homeowners and apartment owners will be able to apply for subsidies to exchange their heating systems from August.

Up to 70 percent of the costs of a new heating system can be subsidised by the Kreditanstalt für Wiederaufbau (KfW), with subsidies depending only partly on household income.

A heat pump at a house in Germany.

A heat pump at a home in Germany. Eco-friendly heating systems are eligible for government subsidies. Photo by Ina FASSBENDER / AFP

There are also changes on the horizon for people with solar panel installations on their balcony or roof. In many cases, people with solar panels produce an surplus of energy that they feed back into the grid in order to turn a profit. The amount people can earn this way will drop by one percent from August.

For systems up to 10 kWp, the new rate will be 8.04 cents per kWh if partially fed into the grid and 12.73 cents per kWh if fully fed. Systems between 10 and 40 kWp will have rates of 6.95 and 10.68 cents per kWh, respectively, and systems between 40 and 100 kWp will receive 5.68 and 10.68 cents per kWh.

Local governments could introduce 30km/h zones

Under pressure from local authorities and campaigners, the government recently passed a sweeping reform of its Road Traffic Act to allow local governments to have more control over their streets.

Rather than prioritising cars at all times, districts can now point to other considerations like health or the environment in order to introduce new speed limits, pedestrian zones and cycle lanes.

Specifically, local authorities can more easily implement 30 km/h speed limits near playgrounds, school routes, and pedestrian crossings – a measure many regions have been calling for.

Though no specific date has yet been said for introducing the amended law, it’s likely to come into effect at the end of July or early August.

Tax deadline extended

The official deadline for mandatory tax declarations is August 31st this year. However, since this date falls on a Sunday, taxpayers in Germany will have until Monday, September 2nd to submit their documents to the Finanzamt.

For most employees in Germany, filling in a tax return is not compulsory, but certain groups of people, including those with second sources of incomes and the self-employed, must submit declarations annually.

Employees can also often benefit from submitting a non-mandatory tax declaration as it allows them to write off work-related expenses and thereby reduce their tax burden.

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