"Whether you're working, retired, raising a family or simply budgeting for everyday life, here's the main changes that will affect your wallet in the coming year. With the new year approaching, Germany is set to introduce a range of financial changes and tax reforms that will impact residents across the country. While increases in the minimum wage, tax allowances and pensions are set to benefit many, higher transport costs and stricter welfare rules may see some households needing to adjust their budgets."
"From January 1st, 2026, the statutory minimum wage will increase to 13.90 per hour. Trainees will also benefit from higher minimum pay, starting at 724 per month in the first year and rising to 1,014 by the fourth year. These changes are designed to boost incomes for lower earners and young people entering the workforce. READ ALSO: Germany's minimum wage set for record increase"
"Alongside the minimum wage hike, the monthly earnings cap for so-called mini-jobs will rise from 556 to 603 on January 1st. Mini-jobs are popular among part-time workers and students, offering flexible employment with simplified tax arrangements. Tax-free allowances and child benefits The basic tax-free allowance the amount of income you can earn tax-free will rise to 12,348 in 2026. The amount is doubled for married couples."
The statutory minimum wage will increase to €13.90 per hour from January 1, 2026. Trainee pay will start at €724 per month in the first year and rise to €1,014 by the fourth year. The monthly earnings cap for mini-jobs will increase from €556 to €603. The basic tax-free allowance will rise to €12,348 in 2026 and will be doubled for married couples. The child allowance will increase to €9,756 and monthly child benefit payments will increase by €4 to €259 per child. Pensions are expected to rise by about 3.7% from July 1, 2026. Higher transport costs and stricter welfare rules may require household budget adjustments.
Read at www.thelocal.de
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