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Citizen's benefit vs. minimum wage: financial disadvantages for recipients revealed!
A WSI study shows that minimum wage workers in Munich are financially better off than recipients of community benefit.
Citizen's benefit vs. minimum wage: financial disadvantages for recipients revealed!
A new study by the Economic and Social Sciences Institute (WSI) clearly shows that full-time minimum wage workers in Germany are financially better off than those receiving civil benefit. This raises exciting questions: How big is the difference really? And how does this vary depending on the region? In Munich in particular, the gap between the two types of income is the smallest, which is important for many people in the city.
The study compares different household types. For example, a single man who earns the minimum wage of 12.82 euros per hour receives a monthly net income of 1,572 euros after deductions, including housing benefit of 26 euros. On the other hand, a citizen's benefit recipient only receives 1,015 euros, which means that he has 557 euros less at his disposal. The difference is also significant for single mothers or families with children. A single mother with a minimum wage and child benefit earns an income of 2,532 euros, while with citizen's benefit she only receives 1,783 euros and therefore has 749 euros less.
Regional differences in wage gaps
The regional differences, which the study also highlights, are particularly exciting. While the gap between the minimum wage and citizen's benefit in Munich is moderate at 379 to 444 euros, it is greatest in regions such as Nordhausen and the Vogtland district at 662 and 652 euros. According to WSI director Bettina Kohlrausch, citizens' benefit recipients, regardless of household type, always have less money than minimum wage workers. This also speaks for the need to create more affordable housing and promote the qualifications of recipients of citizens' benefit. Such measures could help reduce financial differences and improve the living situation of those affected.
In summary, it can be said that work is financially more attractive than receiving citizen's benefit. This finding is supported by other studies that provide similar results. The economic climate in Germany requires creating the incentives that bring people to work in order to improve not only the individual situation, but also the social situation.
For a more in-depth look at the relevant figures and budget analysis, you can read the results in the following sources: Mercury reports, Bürgergeld.org analyzed the results and The economic institute offers further insights.