Fundamental changes in the Citizen's Income Act
22 January 2023
- Abolition of placement priority, instead education and training / before that max. compulsory work, however poorly paid and however precarious (§ 3 para. 1 p. 3 SGB II)
- One-year waiting periods for housing and assets in SGB II and SGB XII (§ 12 Ans. 1 SGB II/§ 22 Abs. 1 SGB II; § 35 Abs. 1 SGB XII, § 90 Abs. 1 SGB XII)
- Increase in income allowances for under-25-year-old young people
- Basic allowance of 520 € for earned income of pupils, students and trainees / currently 100 € + earned income allowance of 20 % (§ 11b para. 2b SGB II, § 82 para. 6 p. 4 SGB XII)
- After-effect of the tax-free allowance until three months after school education (bridging). - Exemption of income from holiday jobs for pupils under 25 years of age and extension of the regulation to SGB XII / previously up to 2,400 €) (§ 11a para. 7 SGB II, § 82 para. 6 p. 1 SGB XII).
- Promotion of further education and qualification
- In future three-year vocational training / previously max. two years
- Further training allowance of € 150/month and examination bonuses (€ 1,000/€ 1,500) for further training related to vocational qualifications (§ 87a par. 1 and 2 SGB III) as well as citizen's income bonus of € 75/month (§ 16 j SGB II). / new
- SGB III: Entitlement to Alg-I continues for at least three months after CET (§ 148 para. 3 SGB III; from 1.7.2023) / new
- Reduction and limitation of sanctions (10%-at first, 20 % at second and 30 % at third sanction; max. 30 % sanction) (§ 31a SGB II) / better than BVerfG ruling
- Reduction of the amount of offsets (for loans to 5 % of the RS) / previously 10 % of the RS (§ 42a para. 4 p. 1 SGB II; from 1.7.2023)