Pensioners in Germany are to receive a one-time payment of 300 euros by December 15 to compensate for the high energy prices. On Wednesday in Berlin, the federal cabinet approved a corresponding proposal from Social Affairs Minister Hubertus Heil (SPD). The leaders of the coalition agreed on the energy price flat rate for pensioners and pension recipients at the beginning of September with their third relief package because of the high energy prices.
In addition, the cabinet decided to raise the upper limit for so-called midi jobs to an earnings limit of a maximum of 2,000 euros per month. Currently it is 1600 euros. This was also part of the traffic light coalition’s third relief package. Employment just above the mini-job threshold with lower social security contributions is to be made easier.
Heil said: “The sharp rise in energy and food prices is a heavy burden on citizens.” With the measures of the third relief package, part of the increased costs can be cushioned. Simply by raising the midi-job limit, employees with low wages who are subject to social security contributions would be relieved by 1.3 billion euros without having to forego social protection. “In this way, we specifically relieve people with low incomes.”
Anyone who is entitled to an old-age, reduced earning capacity or survivor’s pension from the statutory pension insurance or to pension payments under the Civil Servants Act or the Soldiers’ Pension Act as of December 1, 2022 will receive the energy price flat rate. Entitlement only exists if you live in Germany. The one-off payment is made automatically by the pension payment offices. The energy price flat rate is not taken into account for income-related social benefits and is also not subject to the obligation to contribute to social security. However, it should be subject to tax, as the ministry further announced.
