In 2024, Germany can expect significant new measures and updates concerning various aspects of our everyday life. Let us review together the key news and changes that will become relevant for all residents of Germany.
Contents
19% VAT for restaurants and catering establishments
From 2024 The 19% VAT rate will once again apply to food served in restaurants. Consequently, the cost of meals in restaurants will rise. The reduced rate of 7% was introduced during the «coronavirus» pandemic to support the catering sector.
Heating systems in private houses
From the 1st of January In private houses, it will only be possible to install heating systems with a high level of renewable energy use.
Cancellation of the subsidy for the purchase of electric vehicles
In 2024, the €3,000 subsidy for the purchase of electric vehicles costing up to €45,000 — cancelled. This bonus was scheduled to run until the end of 2024, but was prematurely terminated on 17 December due to funding issues.
Increase in the additional state health insurance contribution
Average additional contribution to statutory health insurance – GKV – Gesetzliche Krankenversicherung will increase on average to 1.7 % (by 0.1 percentage points).
Increase in the minimum wage
From 1 January 2024, the minimum wage will increase by 41 cents and will be €12.41 per hour. In 2023, the rate was €12.00 per hour.
Pay rise for a mini-job
From 1st January, it will be possible to earn on a mini-job 538 euros instead of the previous €520.
Electronic prescriptions
Electronic prescriptions will be mandatory From the 1st of January. Patients who prefer a printout will have to receive it.
Increase in the Grundfreibetrag
The Grundfreibetrag will increase from the 1st of January for single people from €10,908 to €11,604, for married couples from €21,816 to €23,208. This is the income threshold up to which residents in Germany do not pay income tax. Due to inflation, it is expected to be increased to €11,784.
Increase of the Kinderfreibetrag
The child tax allowance (Kinderfreibetrag) will also increase. From 3,012 euros up to €3,192 for single workers and from 6024 euros up to €6384 for married couples.
You can find out what a Kinderfreibetrag is here.
Increase in compensation for school supplies
From 1st January, the amount of compensation for school supplies for the academic year for low-income families is increasing. It was 174 euros, it will become €195. The payment is made in 2 instalments during the academic year.
Children's passports
New children's passports are bigger will not be issued, to be updated and renewed from January 2024. It will be possible to apply for a standard passport for children and individuals under 24.
Carbon fee
From January, a fee of 30 euros will be charged instead 45 euros per tonne CO2 emissions. We are expecting price increases at petrol stations.
Replacement of driving licences
Driving licences will need to be exchanged by those born between 1965 and 1970 no later than 19 January 2024.
Care allowance Pflege
From 1st January, care allowances (Pflege) will increased by 5%, depending on the care grade.
The wage ceiling for mandatory health insurance is being raised
The salary threshold for compulsory health insurance (PKV) is being raised – Privatkrankenversicherung. From 1 January, the threshold will be 5,775 euros a month or 69,300 euros a year (Previously this was 5,550 euros a month and 66,600 euros a year). If your income is above this amount, you can choose whether to have private or state insurance.
Reduction of child-care sick leave
Childcare sick leave will be reduced to 15 working days per year (up to 30 days for single parents). This period was increased during Covid from 10 days to 30 days and remains higher than pre-pandemic levels.
Universal Credit
From 1 January, the Bürgergeld for single people will increase from 502 up to €563 by 61 euros.
Pension offices
The value of a single pension point will increase in 2024 from an annual income of 43,142 euros up to €45,358. This means that if your salary has not changed, you will accumulate fewer pension points.
Maternity pay
The long-rumoured news about maternity pay. The family income threshold at which they are granted will be lowered in April from 300,000 to 200,000. Further reduction is planned for 2025.
deposit
From January, a 25-cent deposit will be charged on plastic bottles sold dairy and yoghurt products.
Transmission of information on industrial accidents and occupational diseases
From 1 January, information on industrial accidents and occupational diseases must be transmitted electronically to trade associations and accident insurance companies.
The upper income threshold for social security contributions
The upper income threshold for social security contributions will increase from 1 January:
— state health insurance, ranging from 59,850 euros a year to 62,100 euros a year.
— the contribution ceilings for the pension fund and unemployment insurance will also increase:
2024
€89,400 per year (East)
2023
€85,200 per year (East)
Full changelog on the Bundesregierung website.
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Minimum pension in Germany: why there is none and what is paid instead
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Direktversicherung in Germany: What Is Deducted from the Payout
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Orphan's Pension in Germany 2026 - Waisenrente Rules
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Occupational pensions for employers: what a company in Germany must do
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Betriebsrente: the employer pension in Germany
