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WHAT CHANGES IN GERMANY

Everything that changes in Germany in July 2022

From energy relief measures and an increase in the minimum wage to rules for making it easier to cancel contracts online, here's what's changing in Germany this July.

A cuckoo clock in Schonach, Baden-Württemberg.
A cuckoo clock in Schonach, Baden-Württemberg. Photo: picture alliance/dpa | Philipp von Ditfurth

No more free rapid Covid tests for all

Taxpayer-funded Covid-19 rapid tests or Bürgertests are no longer free for everyone. Under the Health Ministry’s plans, the tests will cost €3, however, some groups of people will still get them for free. 

READ ALSO:

Financial relief for families

As part of the government’s energy relief package, the Kinderbonus will be paid out to families in July. Each child entitled to child benefit will receive a one-time bonus of €100.

Due to inflation and rapidly rising food prices, recipients of social assistance benefits, Hartz-IV and asylum benefits will also get a cash boost in July. They will receive two payments of €100 each and their children €20 each.

€9 ticket and fuel tax cut continues

Germany’s €9 monthly public transport ticket offer continues until the end of August so people will be able to buy a ticket and use it in July. Similarly, the fuel tax cut is in force until the end of August. 

A Covid test centre in Rostock.

A Covid test centre in Rostock. Rapid tests will no longer be free for all from July. Photo: picture alliance/dpa | Bernd Wüstneck

End of the EEG levy 

The Russian war on Ukraine is causing energy prices to rocket upwards. To help people in Germany deal with the price hikes, the coalition government in Germany has decided to abolish the Renewable Energy Act (EEG) charge.

The EEG levy is a green tax that has been used to fund investment in solar and wind power as part of the energy transition. Until January 1st, 2022, it added 6.5 cents per kilowatt hour to people’s energy bills, but at the start of the year, it was reduced to 3.72 cents per kilowatt hour.

From July people in Germany will no longer have to pay the levy. However, It’s not clear whether this will really save consumers much money, due to energy costs going up significantly. 

READ ALSO: Will German energy bills really come down soon?

Increase in the minimum wage

As Chancellor Olaf Scholz of the Social Democrats promised before the German federal election last year, the minimum wage is being raised this year. It is to be gradually increased to €12 by October 2022. In January the minimum wage rose to €9.82, in July it will rise to €10.45.

More financial relief measures come into force in Germany in July.

More financial relief measures come into force in Germany in July. Photo: picture alliance/dpa | Jonas Walzberg

Pension increase

People who receive pensions in Germany will get more money from July. In the states that formerly comprised West Germany, pensions will rise by 5.35 percent, in the former East German states by 6.12 percent. The German pension insurance fund says it is one of the highest adjustments since the introduction of pension insurance.

School holidays continue 

More schools in German states are finishing up for the summer. After schools in North Rhine-Westphalia broke up in June, Schleswig-Holstein and Mecklenburg-Western Pomerania are next, followed by Hamburg, Berlin and Brandenburg on the Wednesday after (July 6th).

The southern states of Baden-Württemberg and Bavaria will be the last to go off on their school holidays – at the end of July and on August 1st respectively.

Pfand scheme extended 

From July, a 25-cent deposit or Pfand will be charged on more plastic bottles and drink cans. Due to the amendment of the Packaging Act, bottled fruit drinks such as orange juice as well as mixed alcoholic beverages will have to be recycled in future. Under plans to extend the scheme further, milk is set to be charged a Pfand from 2024. 

The regulation has been in effect since January 2022, but retailers were granted a transitional period until July 2022 to implement the change.

Get rid of old electrical appliances

From July, many large supermarkets and discount chains – including Aldi, Rewe and Edeka – will accept old electrical goods. People will be able to hand in products such as old mobile phones, electric razors, kettles and toasters free of charge. 

A kettle stands in a kitchen. Get rid of your old appliances at German supermarkets soon.

A kettle stands in a kitchen. Get rid of your old appliances at German supermarkets soon. Photo: picture alliance/dpa/dpa-tmn | Andrea Warnecke

Driving licence deadline approaching

German people born between 1953 and 1958 and who have a paper driving licence issued before 1999 have to exchange it for a digital one or face a warning fine. The deadline for the exchange was originally planned for January, but due to the pandemic, it was extended to July 19th.

The cost of the exchange is €25.50. To apply for the EU driving licence, a valid identity card, the old driving licence and a biometric passport photo is needed. There is no extra driving or health test involved.

READ ALSO: Drivers in Germany given extension to exchange driving licence 

New rent law comes into force

As of July, tenants and landlords will have to provide information on rental prices if they are asked to by authorities. This is to enable a comparison of rents, especially in large cities. Tenants and landlords will be selected at random. Those who refuse to provide information can face a fine of up to €5,000.

Extension of tobacco tax

At the start of 2022, tobacco tax was increased and the price of cigarettes went up. As of July, this also applies to shisha tobacco and liquids for e-cigarettes.

Cancellations of contracts online to become easier

Since the beginning of the year, consumers in Germany have been able to terminate rolling contracts more easily. And people who have concluded a contract online should also be able to terminate it online in future under new laws. 

From July onwards, firms have to include a cancellation button on websites where contracts can be concluded. If this is not the case, the consumer has the right to terminate the contract without notice.

READ ALSO: How Germany is making it easier to cancel contracts 

Cost of sending packages goes up

Anyone who wants to send parcels or packages with DHL from July onwards will unfortunately have to dig further into their pockets. The rises apply to domestic and international shipments. DHL said the price hikes are because of the rise in transport, delivery and labour costs.

READ ALSO: What to know about German parcel delivery hikes

Tax deadline extended

One last point – self-submitted tax returns in Germany were due to be sent to the tax office by the end of July. However, the deadline has been extended until the end of October, giving people more time. 

READ ALSO: Why people in Germany have longer to do their tax return this year

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For members

WHAT CHANGES IN GERMANY

Everything that changes in Germany in August 2022

From the €9 ticket and fuel tax cut, to travel chaos, tax deadlines and digital steps forward, here's what's changing in Germany this August.

Everything that changes in Germany in August 2022

€9 ticket and fuel tax cut runs out

Germany’s €9 monthly public transport ticket offer continues until the end of August so people will be able to buy and use it for the month before it it’s gone when September starts (sadly).

The fuel tax cut is also in force until the end of August. For petrol, the government-subsidised “tank rebate” is about 30 cents per litre, for diesel about 14 cents per litre. The reduction is limited until August 31st.

No plans have been announced yet to extend these measures. 

Travel chaos continues in Europe

The summer months have been chaotic for travellers, and we have seen examples of airports congested throughout Europe. This will continue during August, as airlines have cancelled more than 25,000 flights from their August schedule. 

In Germany, around 6,000 flights operated by Lufthansa alone have been scrapped from the summer schedule.

More strikes?

German airline giant Lufthansa ground staff staged a one-day strike on Wednesday July 27th. Negotiations between Verdi union and Lufthansa will happen on August 3rd and 4th.

It may be that more strikes are announced if an agreement on pay for the 20,000 ground staff isn’t reached. Keep an eye on The Local’s homepage. 

READ ALSO: Flights disrupted across Germany as Lufthansa strike begins

Travellers queue at terminal 2 of Frankfurt airport on July 23rd.

Travellers queue at terminal 2 of Frankfurt airport on July 23rd. Photo: picture alliance/dpa | Frank Rumpenhorst

August regional holiday

There is only one official holiday in Germany in August – Assumption Day – or Mariä Himmelfahrt – on August 15th. It is a regional holiday for the states of Bavaria and Saarland.

It falls on a Monday, so don’t forget to prepare yourself for it, as most shops and supermarkets will be closed on the holiday and Sunday as well (as they always are in Germany).

Tax deadline

Those who have their tax return for 2020 prepared by a tax advisor or an income tax assistance association still have until August 31st to hand it in.

The deadline was extended again in May to relieve tax advisors who have extra work in their plate with auditing Covid financial assistance during the pandemic period.

READ ALSO: Why people in Germany have longer for their tax returns this year

More transparency in employment contracts

Whether it’s the scope of work, length of probationary period, possible overtime or notice period, employment contracts issued from August 1st onwards must clearly state in writing the working conditions for new jobs.

It must also be documented what wages will be paid, how they will be made up, what further training has been promised, what the shift system and rest breaks will be like, and what applies to the remuneration of overtime, allowances and bonuses.

Information on contracting parties, remuneration and working hours must be provided in writing to new employees no later than the start of employment – all other supporting documents can be given within seven calendar days.

More assistance for students

From August 1st, there will be more BAföG financial assistance for students. The maximum support rate for students will be raised from €861 to €934 per month. The tax-free amount on the parents’ income, which is the basis for calculating the education grant, will also go up. This also increases the group of those eligible for support.

The previous tax-free allowance of €8,200 for the assets of trainees will also be increased – to €15,000 for people up to the age of 29, and to €45,000 from the age of 30. Furthermore, the age limit for BAföG funding will be extended from 30 to 45.

READ ALSO: German students to get higher grants from winter 2022

View of the Martin Luther University (MLU) campus in Halle.

View of the Martin Luther University (MLU) campus in Halle. Photo: picture alliance/dpa | Hendrik Schmidt

Minimum wage goes up

For stonemasons and people in the stone-sculpting trade, new industry minimum wages will apply from August 1st 2022; instead of €12.85 per hour, employees will get 50 cents more, raising it to €13.35. Independently of this, there is also the German statutory minimum wage, which will increase to €12 in October.

Digital step for founding companies

From August 1st, anyone who wants to establish a GmbH (a company with limited liability) or KG (limited partnership) can do so without having to attend the notarial certification in person – they can also do it via online video communication.

This is regulated by the Act on the Implementation of the Digitalisation Directive (DiRUG). “The parties involved are identified by means of an electronically transmitted photograph in conjunction with an electronic proof of identity, e.g. the German identity card with eID function,” explains the Hanover Chamber of Industry and Commerce.

Pupils return to the classroom – or go on holiday

Schools in several states will return after the summer break in August. But the southern states of Baden-Württemberg and Bavaria are the last to go off on their school holidays – at the end of July and on August 1st respectively.

Cheaper medicines in the pharmacy

Patients who are prescribed biopharmaceuticals (or biologics) by their doctor, which are often used for Crohn’s disease, arthritis or cancer, can be given cheaper medicines of the same type at the pharmacy from August 16th. This is regulated by the “Law for More Safety in the Supply of Medicines”.

The biosimilars, i.e. similar biological medicines, are to come into circulation more quickly, and drug costs are to be reduced. The law is intended to relieve the burden on health insurance companies. The imitation products are produced and tested by the European Medicines Agency (EMA) under strict criteria as soon as the patent for a drug expires, and are considered to be just as effective as the respective original.

General measles vaccination mandate in care facilities applies

Since March 2020, measles vaccinations have been compulsory in communal facilities such as Kindergartens, asylum seekers’ and refugees’ accommodation and in medical facilities – for caregivers and other employees in the facilities.

Those who already worked in one of the above-mentioned facilities before March 2020 were granted a transitional period until July 31st 2022 to present proof of vaccination.

People who do not comply with the vaccination obligation will be banned from care or work from August 1st, and could also face fines of up to €2,500 if they flout the rules. People who cannot get the vaccination for medical reasons and those born before 1971 are exempt from the measles jab mandate.

A vaccination pass with the measles box ticked.

A vaccination pass with the measles box ticked. Photo: picture alliance/dpa | Tom Weller

Titanium dioxide banned in food

Titanium dioxide is used as a whitening agent in wall paints, varnishes, cosmetics and medicines. But foodstuffs such as chewing gum, sweets, baked goods, soups and salad dressings also often rely on it, especially in the USA. It’s found on the packaging as the additive E171.

As of August, however, titanium dioxide can no longer be used in food production in Europe. The European Commission imposed the ban because it could not be ruled out that the chemical substances could alter “genetic cell material” and that the food additive could therefore no longer be considered safe. In France, titanium dioxide hasn’t been used in food since 2020.

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