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They are to pay a bonus of EUR 1,000 per year of work. This is how the German government wants to reduce unemployment

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Unemployed Citizens' Benefit recipients who take a job covered by social security and keep it for at least a year will get 1,000 euro bonus. The German government has such plans. The Ministry of Economy announced that the relevant draft amendment to the Act on the modernization of unemployment insurance and job promotion was adopted last Wednesday, October 2.

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Germany wants to fight unemployment

The bonus is intended to “encourage regular, permanent employment,” the ministry argues. He adds: “this should enable the long-term unemployed to actually overcome and leave the basic state benefits system.” It is also intended to prevent early return to the social welfare system.

It is also about offsetting the lost transfers related to the citizenship allowance in the event of taking up employment. Currently, low-income work is unattractive due to high deductions for Citizenship Allowance, Child Benefit and Housing Benefit.

According to data from September this year. the unemployment rate in Germany is 6%. About 2.8 million people are unemployed. The proposed solution is aimed not so much at fighting unemployment, but at reducing bloated social spending. The Ministry of Economy admits that the German government is counting on “significant savings” for the state and its budget by reducing expenditure on benefits and collecting new taxes and contributions.

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Criticism from the ranks of the coalition and opposition

According to the Bild daily, the bonus is the idea of ​​Economy Minister Robert Habeck from the Green Party, but his ministry denied it. This is to be a joint venture government as part of the “initiative on” adopted a few weeks ago thing growth. The proposal originally came from the Institute for Labor Market and Employment Research (IAB) at the Federal Employment Agency. “Government therefore follows the latest labor market research results,” the ministry emphasized.

However, this plan is causing controversy, also among the ruling coalition of the SPD, the Greens and the liberal FDP. Green politician Frank Bsirske, the party's social policy expert, does not believe that a bonus for taking up work is necessary. “The vast majority of people receiving social benefits take up work anyway if they have the chance,” he told the Bild newspaper.

In turn, Frank Schaeffler from the FDP believes that the government's plan is “absurd”. – Spending is already exploding. The bonus must be kept in the Bundestag, said the Liberal budget expert.

Martin Huber, secretary general of the opposition Bavarian Christian Democrats CSU, is also critical. In his opinion, the bonus of EUR 1,000 is “pure mockery of those who have been doing their job for years.” By introducing this solution, the coalition “would threaten social peace and add fuel to the fire,” he said in an interview with Bild.

The article comes from Deutsche Welle.



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