Money 2025: Electricity prices, child benefit, refueling – that’s changing

What will 2025 bring for your wallet? We cannot know whether your favorite product in the supermarket will become more expensive and whether the boss will agree to a pay rise. However, a few points that could impact many citizens’ household budgets are certain. A little overview.

The statutory minimum wage will rise from 12.41 euros to 12.82 gross per hour on January 1, 2025. The federal government had already followed a corresponding proposal from the Minimum Wage Commission in the summer. For a 40-hour week, this corresponds to a stable monthly gross of 2222 euros. At the same time, the wage limit for mini-jobs will be adjusted: so that employees can continue to work ten hours a week free of taxes, the earnings limit will rise from 538 to 556 euros per month.

A higher minimum wage will apply to employees in geriatric care from July 1, 2025. Nursing assistants will then receive at least 16.10 euros per hour (previously 15.50 euros), qualified nursing assistants will receive 17.35 euros (previously 16.50 euros). For nursing professionals, the minimum wage rises from 19.50 euros to 20.50 euros an hour.

Due to increased prices and rents, housing benefit will be increased in January. According to the federal government, the state rent subsidy increases by 15 percent on average. Around two million low-income households receive housing benefit.

Pensioners should receive more money on July 1, 2025. In its pension insurance report, the federal government is currently forecasting an increase of 3.5 percent. But that could change slightly; the exact value will not be determined until spring.

Child benefit is set to increase by five euros to 255 euros per child per month in the new year. The broken traffic light government finally agreed on this shortly before Christmas. In addition to the Bundestag, the Bundesrat, in which the CDU-led states have a say, must also agree to this. If the Federal Council passes the law, the child allowance would also increase. The whole thing is part of a relief law that also provides for an increase in the basic tax allowance.

From January, the Germany ticket costs 58 euros instead of the previous 49 euros per month. With the ticket you can use all local and regional buses and trains – except long-distance trains. The offer can still be canceled on a monthly basis; some employers offer it as a job ticket and then add something else.

Electricity becomes cheaper for many consumers at the turn of the year – although not for everyone. According to the comparison portal Verivox, 280 basic suppliers reduce their prices by an average of ten percent. 1.8 million households benefit from this. Conversely, 47 suppliers are increasing the price by an average of eight percent, affecting 300,000 households. A mixed picture could also emerge in 2025 for the (cheaper) electricity providers outside of the basic supply: in some regions, significantly falling network fees speak in favor of price reductions, while the fact that electricity levies are rising speaks in favor of higher prices.

Gas customers may also be affected differently in 2025. At the turn of the year, Verivox recorded 64 price increases – some of them significant – and 211 price reductions. The price increases will affect 700,000 households and the decreases will affect 600,000. As with electricity, energy providers have recently been able to purchase gas more cheaply than in the previous two years. At the turn of the year, gas network fees and the CO2 tax on fossil fuels will increase.

The CO2 price set politically for climate protection will rise from 45 to 55 euros per ton on January 1st. According to ADAC, this makes both petrol and diesel around three cents per liter more expensive, provided the providers pass on the increase on a one-to-one basis.

Many statutory health insurance companies will increase the additional contribution at the turn of the year 2025 – in some cases significantly. According to the Ministry of Health, it increases by an average of 0.8 percentage points to 2.5 percent. However, this is only a reference point given by the legislator. In fact, health insurance companies can set the additional contribution individually depending on financial needs. The respective additional contribution comes on top of the general contribution of 14.6 percent of gross income. A tariff comparison after the current wave of increases can be worthwhile for consumers.

Social long-term care insurance will also become a little more expensive: on January 1, 2025, the contribution will rise by 0.2 percentage points to 3.6 percent. As with health insurance, the contribution is paid equally by the employee and the employer.

Motor vehicle insurance has been becoming noticeably more expensive for two years now and there is no end in sight. Many customers also received a hefty premium increase for 2025. Switching can therefore be worthwhile, although new customer contracts for motor vehicle liability as well as fully and partially comprehensive insurance are on average 26 percent more expensive than in the previous year, as the Finanztip portal reports. The main reason for the sharp increases in premiums is the skyrocketing costs for repairs and spare parts. The ADAC also points out that around seven million vehicles for 2025 have been classified in a more expensive type class and around five million in a cheaper one.

From January 1st, the standard letter will cost 95 cents instead of the previous 85 cents. 95 cents now also have to be stuck on a postcard, previously 70 cents. DHL parcels and packages up to five kilograms are also slightly more expensive. This does not mean that the postal service will reach its destination any faster – on the contrary: from 2025, the majority of letters will only have to reach their destination on the third day after they are posted instead of on the first or second day.

New rules and laws: Read more changes for consumers here