What's new with the Citizen's Income from July 1

At the beginning of 2023, the previous unemployment benefit II was replaced by the citizen's income. The first changes were made on January 1 of this year. Further changes will now follow on July 1.

What will change in terms of cash benefits

• The allowances for all employed persons will be improved. If you earn between 520 and 1000 euros, you can keep 30 percent of it. This means up to 90 euros more in your wallet than before.
• Young people will be allowed to keep income from school and student jobs and from vocational training up to the mini-job limit (currently 520 euros). This also applies to anyone completing a federal voluntary service or a voluntary social year. This also applies during a three-month transition period between school and vocational training.
• Income from student jobs during vacations is not taken into account at all.
• Maternity pay is no longer counted as income.
• Inheritances do not count as income, but as assets.
• Volunteers can keep up to 3,000 euros of their annual expense allowance.
• In the case of medical rehabilitation, it is no longer necessary to apply for transitional allowance; the citizen's allowance will continue to be paid.

Changes to advice and placement

• The cooperation plan replaces the formal integration agreement. The cooperation plan is the "common thread" for the job search and is drawn up jointly by Jobcenter employees and recipients of the citizen's allowance in plain language. It does not contain any instructions on legal consequences. It is the basis for trusting cooperation in the integration process for both sides.
• If differences of opinion arise during the development of the cooperation plan, the new conciliation procedure can help. The aim is to reach an agreement on a common path in the integration process.
• Citizens' allowance recipients can take advantage of holistic support/coaching as a new service. Coaching is voluntary and can also accompany training or employment.
• Anyone who embarks on further training with a qualification receives a further training bonus for successful intermediate and final examinations. In addition, there is a monthly further training allowance of 150 euros.
• For other measures that are particularly important for sustainable integration, there is a monthly citizen's allowance bonus of 75 euros.
• Vocational qualification: Anyone who wants to catch up on this can now also receive funding without any reduction if required.
• Basic skills: Those who lack reading, math or computer skills can improve them more easily.