At the turn of the year, several new laws came into effect, the most important of which we would like to explain here.

The Mindestlohn(minimum wage) will rise from 9.35 to 9.50 euros per hour from January. In July there will be a further increase to 9.60 euros.

In addition, the Hartz IV standard rate (specific state benefit for low income families) will increase. Single adults will now receive 446 euros a month instead of 432 euros. Partners will receive 401 euros instead of 389 euros.

Families with children will also be pleased, as the Kindergeld(child benefit) will increase by 15 euros per month. For the first two children, for example, state contributions will increase to 219 euros per month.

A major change in 2021 is the abolition of the Solidaritätszuschlags(solidarity tax). Until now, every employee paid this with their income tax and it went towards the costs of German reunification. In 2021, this tax will be abolished - at least for 90% of the population. Only those on very high incomes will continue to pay it.