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Thursday, November 14, 2024

Germany. An additional 1,000 euros per year of work

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EUR 1,000 per year of work is the latest idea of ​​the German government, which is intended to encourage the unemployed not only to take up but also to maintain employment. The plan is already controversial, not only among the opposition, but also within the ruling camp.

According to Deutsche Welle, the government adopted a draft amendment to the act on modernization of unemployment insurance and job promotion. It assumes payment of EUR 1,000 to recipients of citizen's allowance (for the unemployed) who take up a job subject to social insurance and maintain it for at least one year.

To support and reduce state spending

Ministry of Economy German argues that the bonus is intended to “encourage regular, permanent employment” and should also “enable the long-term unemployed to effectively overcome and exit the basic state benefit system.” Additionally, it is assumed that it will also help prevent citizens from returning to the social welfare system early.

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DW explains that it is also about compensating the unemployed for lost transfers related to the citizen's allowance in the event of taking up employment. Currently, low-income work is unattractive due to the loss of some benefits.

The Ministry of Economy admitted that this solution is also intended to reduce social spending.

“Pure mockery” of those who work

However, an allowance of EUR 1,000 is an idea that is controversial. Martin Huber, secretary general of the Bavarian Christian Democrats CSU, which is in the opposition, in an interview with “Bild” called this idea “pure mockery of those who have been doing their job for years.”

He also stated that the ruling coalition, introducing it, would “threaten social peace and add fuel to the fire.”

Coalition members are also critical. In an interview with “Bild”, Green politician Frank Bsirske, the party's social policy expert, said that “the vast majority of people receiving civic benefits take up work anyway if they have the chance,” so he sees the need to introduce an additional financial incentive.

Main photo source: Shutterstock



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