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Is welfare more profitable than work?

Recipients of social benefits in Germany often receive more than working residents of the country

However, it seems that one of the basic principles of the social state proclaimed by the Chancellor is not actually applied in many cases. At any rate, as Russkaya Germaniya notes, this is indicated by calculations presented by the German Taxpayers' Union. According to the union, 'welfare recipients' in some cases have more money in their pockets than working people in Germany.

For example, for a family of four with only one working person and two children, a monthly gross income of 2,540 euros is needed to achieve a net level equivalent to the Hartz IV unemployment benefit. Assuming a 38-hour work week, an employee would then have to earn at least 15.4 euros per hour. If the family has three children, the hourly wage of the working family member cannot be less than 20 euros per hour, with a gross monthly income of 3,300 euros.

In this case, social benefits would amount to 610 euros per month in the first scenario, and 917 euros in the second. It should be recalled that German lawmakers have currently set the minimum hourly wage at 8.84 euros. Hence, it becomes clear that few residents of Germany can boast of a job where they earn twenty euros per hour.

Meanwhile, the amount of Hartz IV social benefits for a family of four with two non-working adults, according to the Taxpayers' Union, is currently 1,928 euros per month. This sum consists of 1,284 euros for 'living expenses' and 644 euros intended for rent. It is particularly emphasized that in some regions of Germany this amount is even higher due to high rental prices. If the family has three children, 'welfare' parents receive 2,381 euros per month from the German state.

In fairness, it should be noted that the Taxpayers' Union's calculations did not take into account such an important indicator as child benefit (Kindergeld). However, even if the benefit amount is added to the salary, a working family with three children has 2,526 euros left per month compared to 2,381 for 'welfare recipients'. The modest difference of 145 euros is unlikely to motivate people to work 163 hours a month for it. It turns out that they work for less than one euro per hour.

It should be recalled that Health Minister Jens Spahn, a CDU representative, stated that the level of welfare in Germany is quite sufficient for living. This statement provoked strong indignation from many charitable organizations, which have long demanded that the government quickly increase the amount of unemployment benefits, citing Sweden as an example. In that country, the welfare amount for a single person is indeed 640 euros compared to 416 euros in Germany. According to calculations by social and charitable unions in Germany, the benefit level for a single person should be raised to 520-560 euros per month.

Meanwhile, the governing mayor of Berlin, Michael Müller, over the past weekend even called for a complete revision of the current social security system in the country. In the politician's view, the Hartz IV legislative provisions introduced 15 years ago as part of the Agenda-2010 program have proven to be untenable and still 'lack public acceptance'. As the Social Democrat noted, in today's era of digitalization and rapid changes in the labor market, instead of welfare, a 'universal basic income' of 1,200 euros per person should be introduced.