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Calculation: The minimum wage will continue to be ahead of citizens’ money

Calculation: The minimum wage will continue to be ahead of citizens’ money

Critics say that working with the traffic light coalition’s new citizen’s money should no longer be worthwhile. A calculation by the Institute of Economics and Social Sciences now shows: That’s not true.

According to current calculations, employees who work full-time at the minimum wage have a significantly higher income than people who receive citizen’s benefit. This will also apply next year when the federal government’s planned increase in citizens’ money comes into force, as shown by calculations by the Economic and Social Sciences Institute (WSI) of the Hans Böckler Foundation, which were available to the German Press Agency on Thursday . In 2024, single people who work full-time at the minimum wage would have a net income that is 532 euros higher per month than single recipients of citizen’s benefit. For single parents with one child, the difference is between 715 and 765 euros, depending on the age of the child. The ARD magazine “Monitor” first reported on it.

Expert: “Don’t polemicize against citizens’ money, but advocate for a higher minimum wage”

Social Minister Hubertus Heil (SPD) had previously announced that citizens’ money would be increased by around twelve percent next year. Union faction leader Friedrich Merz and his deputy Jens Spahn criticized this. Those who work should have more money in their pockets at the end of the month than those who receive social transfer benefits, argues Merz.

“Anyone who wants to strengthen social cohesion in our country should not polemicize against citizens’ money, but rather campaign for a higher minimum wage and more collective bargaining,” said Bettina Kohlrausch, Scientific Director at the WSI. “Because that is the best protection against poverty wages.”

Source: Stern

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