New year, new rules: What will change for German citizens in 2024

An eventful year 2023 is coming to an end

The past year was marked by economic policy crises, wars, inflation, turbulent stock markets and comparatively high interest rates. On a political level, the traffic light coalition must now take austerity measures to plug the budget gap caused, among other things, by the consequences of the corona pandemic and the war in Ukraine. Because that At the beginning of December 2023, the Federal Constitutional Court annulled the reallocation of 60 billion euros in the 2021 budget. The money was approved as a corona loan, but was to be used retrospectively for climate protection and the modernization of the economy. At the same time, the judges ruled that the state should not set aside emergency loans for later years. But the federal government did this in special pots - which is now tearing additional holes in the budget. Finance Minister Lindner therefore sees a “need for action” of 17 billion euros in 2024.

How much should be saved and where will probably only become clear in the course of the new year. But some rules and innovations have already been set and sometimes even bring consumers more money. So it's worth knowing about them. An overview:

That's what's in store for us in 2024

tax

• Basic allowance

A “monetary” advantage even applies automatically: instead of 10,908 euros, 11,604 euros will be tax-free annually from next year. The tax office therefore only accesses that part of the taxable income that exceeds this so-called basic allowance.

• Child allowance

Anyone who has children can look forward to a higher child allowance. In 2024, it is 3,192 euros per parent (2023:3,012 euros).

• Top tax rate

The top tax rate will be charged in 2024 from an annual income of 66,761 euros, in 2023 it is 61,972 euros.

• vat

Eating out could be more expensive: In restaurants, from January 1st The normal VAT rate of 19 percent is back instead of the temporarily introduced seven percent.

worker

• minimum wage

The minimum wage in Germany is being increased. It rises from the current 12 euros to 12.41 euros gross per hour. This change not only affects main employees subject to insurance, but also mini-jobbers. For them, the income limit rises by 18 euros to 538 euros. Trainees can also look forward to a higher salary. There is a minimum salary for trainees in 2024, which training companies must guarantee them. The rates were announced at the end of October.

• Working time recording

According to the Draft bill of the Federal Ministry of Labour From 2024, employers will be required to record the working time of their employees electronically. At least if there are no separate collective agreements or small business regulations in addition.

pension

• Age limit rises

In the coming year, the regular age limit will rise to 66 years. This applies to insured persons who were born in 1958. For future pensioners, the retirement age continues to rise in two-month steps. With the so-called pension from 63, the starting age also rises - to 64 years and four months for those born in 1960.

• pension increase

Pensions are expected to rise by 3.5 percent in 2024. The Verbraucherzentrale Nordrhein-Westfalen calculated this on the basis of the Federal Government's draft pension insurance report 2023. However, the adjustment will not be finally decided until next spring.

insurances

• car insurance

Car insurance premiums will rise by at least ten percent in 2024. The reason for this is primarily that the cost of repairs has risen due to high inflation.

• Property insurance

A similar picture can be seen in residential buildings. The General Association of the Insurance Industry expects a Average price increase of 7.5 percent.

consumers

• Citizens' allowance

This change only affects citizens money recipients who are particularly affected by inflation: From the beginning of 2024, single people should therefore receive a total of 563 euros per month - the current figure is 502 euros per month. Young people between 15 and 18 years of age will receive 471 euros per month instead of 420. For children from the beginning of the seventh to the age of 14, 390 euros instead of 348 euros of civil allowance will be paid; children up to the age of six should receive an increased rate of 357 instead of 318 euros.

• pawn

When shopping, consumers will have to change their mind from January — and not dispose of milk bottles with household waste. Because dairy products that are sold in single-use plastic beverage bottles are then subject to a deposit of 25 cents.

• CO2 tax

The traffic light wants the Raise CO2 tax for fuel, heating oil or gas faster than last planned. The price is currently 30 euros per ton, from 2024 it should now be 45 euros instead of the planned 40 euros. Gasoline is thus becoming more expensive by around 4.5 cents per liter.

Property owners and buyers

• Building Energy Act

On January 1, 2024, the much-discussed Building Energy Act comes into force. The change affects all owners of buildings and their energy requirements. Among other things, the law states that oil and gas heating systems may continue to operate until 2044. At least 65 percent of new heating systems must be powered by renewable energy such as photovoltaics, bio-oil, biogas or wood pellets.

• Wohn-Riester

In the new year, home pension funding (“Wohn-Riester”) can be used both to build up equity, repay loans or age-appropriate renovations, as well as for energy-efficient renovation and conversion measures. This includes the installation of heat pumps, the installation of photovoltaic systems and thermal insulation.

Apart from the planned new regulations, 2024 will certainly also have a few nice - and perhaps less pleasant - surprises in store. Whatever the new year may bring: FINEXITY wishes all readers and customers a healthy, happy and successful 2024!