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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 April 2023

End of the (last few) Covid rules

“Rules – what rules?” is likely to be the question on everybody’s lips when the Infection Protection Act quietly expires on April 7th – and it’s true that, unless you work in a clinic or care home, the end of this bill probably won’t change much in your day-to-day life. With the end of masks on public transport in large swathes of Germany back in February, Germany toppled one of the last few Covid rules it had – and since then people have generally only needed an FFP2 mask for the odd doctor visit.

That said, the end of the bill is pretty significant in another way. It signals the end of a three-year pandemic that shook the world and the official recognition that a virus that was once so deadly has now become endemic. Just like the winter flu and common cold, Covid is here to stay, but nobody will be feeling too sentimental about leaving the days of lockdowns, tests, and vaccine passes behind us.

No more sick notes by telephone

On March 31st, special regulations allowing people to get a sick note from their doctor over the phone will expire. This was initially intended to avoid unnecessary Covid infections but, given the much less risky situation at present, officials don’t think there’s a need for it anymore.

However, there could still be a way to avoid lengthy stays in the doctor’s waiting room in future. If your GP offers the service, you can always get your sick note (or Krankschreibung) after a video appointment instead – provided your illness doesn’t require a physical inspection.

Higher tax allowances

In the days of grim financial news, there’s a bit of light on the horizon for taxpayers as higher tax-free allowances for both employees and single parents will apply from April.

Starting next month, the so-called Arbeitnehmerpauschale (employee lump sum) will be hiked up to €1,230 per year. This is the amount of expenses the tax office assumes you’ll have in relation to your work and deducts from your taxable salary (without needing proof) each year.

The tax-free allowance for single parents will also be increased to at least €4,260 (plus €240 for additional children), meaning single mums and dads get to keep a little bit more of their salaries.

If you’re feeling a slight sense of deja vu, it may be because both of these tax-free amounts actually went up at the start of this year, but April marks the first month they will be factored into your payslips. So if you see a little bit extra in your bank account next month, that could be why.

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Deutschlandticket goes on sale

It was meant to be hitting the ticket offices back in January, but as the saying goes: better late than never.

From April 3rd, the official pre-sale of the €49 ticket will kick off, allowing early birds to set up their Abo via Deutsche Bahn ahead of the launch of the ticket in May.

Of course, some states have been much quicker off the mark than Germany’s rail operator, so if you live in Frankfurt or Berlin, for instance, you may have already got your subscription sorted.

It’s worth noting that some states are working on further concessions for students or pensioners, while some people may be able to get the ticket cheaper via their work, so be sure to check with your employer first to see if you’re entitled to a ‘Jobticket’.

An S-Bahn train in Cologne. Photo: picture alliance/dpa | Henning Kaiser

Microsoft hikes its prices

First it was gas, then it was groceries, then it was beer – and now even software products are going up in price.

Starting in April, tech giant Microsoft has announced price rises across its cloud products, which include Microsoft 365, Office 365 and Dynamics 365 as well as Microsoft Defender and Teams. The price hikes will depend on the product, but some customers could see their subscription go up by as much as 20 percent.

To justify the move, the company pointed to changes in the value of global currencies and said it wanted to make its pricing more consistent for customers around the world. This is also something they’ll look at twice a year going forward – so brace yourself for even more price hikes six months down the line.

Gay men are allowed to give blood

A rule that banned homosexual men from donating blood will be scrapped in April. From then on, anyone will be allowed to give blood regardless of their gender or sexual orientation, or whether they are cis or trans.

What will continue to remain the case is that people who regularly change their sexual partner – or have multiple sexual partners – will not be permitted to give blood. This is determined via a questionnaire that potential donors fill out beforehand.

Painters, builders and agency workers get a pay rise

Life is getting more expensive in Germany, but some workers are also set to get a healthy boost to their wage packets from April.

Under a collective agreement that was signed back in January, painters and varnishers got their basic hourly wage hiked to €18.39 in the western states and Berlin and €17.86 in the eastern states.

Workers a little lower down the pecking order are now due a pay rise as well, as the industry-specific minimum wage for helpers will rise to €12.50 per hour and the second minimum wage will increase to €14.50.

A painter and decorator at work. Low-paid workers in this sector are set to get a pay rise in April. Photo: picture alliance/dpa/dpa-tmn | Kirsten Neumann

As well as painters and varnishers, construction workers can also look forward to more money from April 1st. Wages in western Germany will be increased by two percent and in eastern Germany by 2.7 percent, and workers will be given a bonus of €1,000 to compensate for inflation.

The collective agreement also stipulates that workers will receive compensation for travelling to construction sites. These are paid as lump sums and are based on the number of kilometres.

Temp or agency workers will also be taking home a little bit extra next month as the minimum wage in their sector increases to €13 per hour.

New questions on driving tests

Thinking of biting the bullet and getting a German driving licence? Then make sure you have an up-to-date practice test, as 44 new questions are set to be added to the theory test from April.

Of these new questions, 23 will only apply to Class B licences – the type that most drivers need in order to get behind the wheel.

If you’re using one of the popular apps to prepare for your test, you’ll need to ensure this is fully up to date by the time you sit down for the exam.

Lights go back on in towns and cities

The clocks are going forward this week, and the evenings are set to get lighter in more ways than one. As well as a precious extra hour of sunshine late in the day, towns and cities will once again be permitted to illuminate their statues, fountains, building sites and public buildings at night.

A cyclist rides past the fountain on St. Johanner Markt in Saarbrücken. Photo: picture alliance/dpa | Oliver Dietze

That’s because the emergency energy saving measures introduced last September are due to expire on April 15th – provided they’re not extended. This legislation was initially brought in following Russia’s invasion of Ukraine at a time when Germany was struggling to reduce its energy usage and its dependence on Russian gas. But with winter behind us and the gas storage facilities still relatively full, this summer will likely see a much more relaxed approach to energy usage.

Nuclear power plants to close

Just as Germany looks set to loosen up its energy-saving rules, the country’s three remaining nuclear power plants – will be powered down for (potentially) the last time.

As part of the government’s transition away from nuclear power and coal, these three plants – Isar 2, Neckarwestheim 2 and Emsland – were originally set to be shut down at the end of 2022. However, due the war in Ukraine and the ensuing energy crisis, the government kept them in operation – but the Federal Office for Nuclear Waste has announced that these will close in the middle of April.

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