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IMMIGRATION

Why asylum seekers in Germany will soon have limited access to cash

Instead of cash, refugees in Germany will receive payment cards in the future due to nationwide legislation passed by the Bundestag on Friday.

Published: 12 April 2024 16:51 CEST
payment card for refugees
An asylum seeker shows one of the first Bavarian payment cards he received. After weeks of arguing, parliament agreed on a nationwide introduction of a payment card for refugees. Photo: picture alliance/dpa | Sven Hoppe

From November, asylum seekers in Germany will receive part of their subsistence benefits as credit instead of cash.

Supporters of the switch say it is intended to prevent migrants from transferring money to smugglers or family and friends abroad. 

The Bundestag voted in favour on Friday with overwhelming support from members of the traffic light parliamentary groups (SPD, the Greens and FDP). Members of the AfD and the BSW also voted in favour. 

The CDU/CSU and the Left Party, as well as Green MP Canan Bayram, voted against the measure.

Some states have already adopted a payment card system for their asylum seekers, but the new act will unify rules across the country. 

Chancellor Olaf Scholz (SPD) and the state premiers agreed on the introduction of the card on November 6th. 

“The payment card can be used to pay for goods and services of daily life,” said Federal Minister of the Interior Nancy Faeser (SPD). “However, the possibility of withdrawing cash is limited… A crucial point for us is that transfers and cash payments abroad are no longer possible.”

The law now states that the benefit authorities can decide for themselves how much cash cardholders can withdraw within a certain period of time. In this way, “individual needs and circumstances” are taken into account.

But certain types of businesses in Germany, including barber shops or kebab kiosks, often only accept cash. For critics of the bill, this means that the card could create yet more bureaucracy for asylum seekers, who often face lengthy waits and hefty amounts of paperwork. 

READ ALSO: Ask an expert – Why is cash still so popular in Germany – and is it changing?

The police union (GdP) warned against keeping the share of cash for refugees too low. 

Refugees are often under pressure to cover the medical costs of their families in their country of origin or owe money to smugglers. This pressurised situation does not disappear with the payment card and can also have an impact on the safety of the remaining families in the home countries, explained the GdP federal chairman Jochen Kopelke. 

Kopelke added: “If moderation is not maintained, there is a risk that refugees will try to obtain the money they need through criminal activities.” Those affected should not be pushed into crime.

A refugee speaks with an advisor at an asylum centre in Bavaria.

A refugee speaks with an advisor at an asylum centre in Bavaria. Photo: picture alliance/dpa | Sven Hoppe

How are political groups reacting to the law?

For their part, the CDU believes the payment card system could make Germany less attractive to refugees.

CDU MP Detlef Seif said the card was not a panacea, but could help to reduce the number of asylum seekers moving on to Germany within Europe. His party colleague Kai Whittaker condemned the project as insufficient, as the cash payment would not be limited to €50 per month as demanded by the Union.

The Greens had not considered a nationwide uniform regulation necessary. However, the party largely agrees with the regulation that has been adopted.

Deputy chairman of the Greens parliamentary group, Andreas Audretsch, said: “Refugees who live in an apartment must be able to [pay their utility bills].”

He noted that this wasn’t previously clear in the regulation, but that this had been added to the adopted version of the bill. 

Stephan Thomae, a member of parliament for the Free Democratic Party (FDP), emphasised that with the card, asylum seekers could avoid queueing up to receive money on the last working day of the month, and would no longer have to travel home with large sums of money in their pockets.

READ ALSO: Border centres and ‘safe’ states: The EU’s major asylum changes explained

Clara Bünger, a member of parliament for the Left Party, on the other hand, criticised the “disenfranchisement of refugees” and said that legal certainty would be lost.

Meanwhile, members of the anti-migrant AfD accused the traffic-light coalition of an overly liberal migration policy. 

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GERMAN CITIZENSHIP

How much do you need to earn to qualify for citizenship in Germany?

Applicants for German citizenship need to be able to support themselves financially, but it's often unclear what that means in practice. Here's how to work out if your income is high enough for citizenship.

Published: 15 May 2024 15:29 CEST
How much do you need to earn to qualify for citizenship in Germany?

Out of the requirements for qualifying for a German passport, supporting yourself financially is one of the most important – and one of the most confusing.

Many foreigners assume that the authorities have a magic number in mind and will often worry about whether their income is above or below this threshold.

In reality, though, the law is much more flexible. In section 10 of the nationality law, it states that applicants must show that they “can support themselves and their dependent family members without claiming benefits under the Second or Twelfth Book of the Social Code.”

In other words, that your income is healthy enough to not rely on the state for things like long-term unemployment benefits.

According to Fabian Graske, an immigration lawyer at Migrando, around €1,500 gross per month for a single person is usually considered enough to live on. 

That said, there isn’t really a one-size-fits-all approach to this quesiton. 

When it comes to working out if your income is high enough, you’ll need to take into account a number of factors that your case worker at the naturalisation office will also weigh up. 

That’s why it’s important to ask yourself a number of questions that go beyond just how much you earn: 

How high are your living costs? 

In Germany, there are huge regional differences in the cost of living, so what someone can afford to live on varies hugely from place to place.

For example, someone living in pricey Munich is likely to need much more money for rent or their mortgage than a resident of much more affordable places like Halle or Leipzig, so you should consider whether what you earn is enough to offer a basic standard of living in the city or town you live in. 

READ ALSO: Requirements, costs and permits – 6 essential articles for German citizenship

It is worth mentioning, though, that what you actually pay for rent and bills matters more than the averages. If you’re lucky enough to find an apartment with unusually low rent in Berlin, for instance, you can probably get away with earning less money as well. 

Are you single or do you have a family?

If you’re single and have no children, you’ll likely get a lot more lenience from the authorities when it comes to having a lower-than-average income.

A family sit at a lake.

A family sit at a lake in Bavaria. Image by Eva Mospanova from Pixabay

Of course, if you have dependents such as kids or a spouse who doesn’t work (or both), you’ll need to ensure not only that your own living costs are taken care of, but also that your family can survive on your income alone.

That naturally means you’ll be expected to earn a certain amount more for each dependent child or adult.

On the plus side, any income your spouse does earn will be counted alongside your own, so if you’re the one who is supported by their partner, the authorities will also take this into account. 

Is your job stable or unstable?

One key thing to think about when applying for citizenship is the security of your work contract. Someone who has a long-term contract with an employer and has passed their probationary period will be in a much better position than someone who is still on a three-month trial, for example.

This doesn’t mean you shouldn’t submit a citizenship application after just starting a new job, but be aware that the authorities may well wait to process your application until you’ve passed the initial probation and have been put onto a longer-term contract. 

A similar rule of thumb applies to people who are currently claiming Arbeitslosengeld I (ALG I), or unemployment insurance. Though this doesn’t disqualify you from citizenship, it may delay your application until you can find a stable job. 

READ ALSO: Can I still get German citizenship after claiming benefits?

Do you need to rely on welfare payments to get by?

A key aspect of German naturalisation law is working out whether you’re likely to be a financial burden on the state by relying too much on the welfare system.

The entrance to the Jobcenter in Düsseldorf,

The entrance to the Jobcenter in Düsseldorf, North Rhine-Westphalia. Photo: picture alliance/dpa | Oliver Berg

While everyone needs a helping hand from time to time, claiming benefits like long-term unemployment benefit (Bürgergeld) or housing benefit (Wohngeld) to top up your income sadly shuts you out of the naturalisation process and could also make it hard for you to qualify in the future. 

Luckily, this doesn’t apply to all types of state support – Kindergeld, ALG I and Bafög don’t count, for example – so seek advice from a lawyer or your local citizenship office if you’re unsure.

How old are you?

Though this is hard to fully quantify, age can sometimes play a role in assessments of your financial fitness in Germany.

A young person fresh out of university or vocational college may be seen as someone with high earning potential over the years, so in some cases the authorities may take a more relaxed approach to their current income.

In contrast, an older person coming to the end of their working life could be held to slightly stricter standards. 

This is also why it can be important to show that you have sufficient pension contributions or another form of security for the future, such as owning your own home or having lots of savings. 

READ ALSO: How can over 60s get German citizenship under the new nationality law?

What counts as ‘income’ under German law?

It’s important to note that income doesn’t just have to mean the salary you get at your job: income from rental properties, side hustles and freelance gigs can also be included, as well as things like alimony payments after divorce.

Once again, if you’re unsure, just ask. The citizenship offices are there to advise you and should give you clear instructions about what kind of documents count as proof of income in your application. 

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