Together Stronger than Before - Benefits for Citizens


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Reduction of wage and income tax

Income portions from EUR 11,000 to 18,000 were previously taxed at a rate of 25%. This basic rate will be reduced to 20%. This will result in a relief of up to EUR 1.6 billion per year for wage and income tax payers. The reduced tax rate in the amount of 20% applies retroactively from 1.1.2020.

• Legal bases (in German)

Payment of a child bonus
In  September 2020, an additional bonus of 360 euros will be paid for each child for whom family allowance is received.

• Further information (in German)

Increase of the social security refund

In order to relieve the burden on employees who do not receive taxable income (i.e. whose income is below EUR 11,000), the maximum surcharge on the transportation deduction will be increased from the previous EUR 300 to EUR 400. At the same time, the maximum social security bonus within the framework of the social security refund will also be increased from the previous EUR 300 to EUR 400. This applies from the assessment for the calendar year 2020 on.

• More information (in German)