Pecunic Earners Still Claiming Basic Income Support - Seven Billion Euros Paid Out by the State
- 2 Min.
State disbursements: 826,000 individual transfers - Schedule for seven billion euros expenditure - State shells out seven billion euros to 826,000 individuals accused of upselling public funds
According to government figures, about 826,000 employed individuals collected extra basic income support last year because their earnings were insufficient to live on. The costs amounted to roughly seven billion euros. This information was provided by the Federal Government in response to a request from the Left Party's Cem Ince, which was obtained by the press agency DPA. It was revealed that the number of so-called "top performers" has risen for the first time since 2015.
At that time, the statutory minimum wage was introduced in Germany, initially set at 8.50 euros per hour. Afterward, the number of "top performers" continued to fall from approximately 1.2 million to around 796,000 people in 2023. However, the statistics now show an increase for 2024 for the first time.
The minimum wage is now 12.82 euros. The Minimum Wage Commission is currently considering potential increases. Federal Chancellor Friedrich Merz has stated that rising it to 15 euros by 2026 is achievable and desirable. Employers express concerns about this being too much.
"Living Off State Assistance Despite Working"
The Left Party's Ince views the figures on "top performers" as a justification for a significant increase. "It's unacceptable that hundreds of thousands receive support from the state despite working," Ince told DPA. "We're subsidizing low wages and maintaining the exploitation of labor power instead of investing in child care and kindergarten spaces that would enable many people to escape part-time jobs."
According to the Ministry of Social Affairs, state expenditure on supplementary basic income support increased from 6.19 billion euros in 2023 to 6.99 billion euros last year. In 2024, households with at least one "top performer" - such as families or couples - received a total of 11.61 billion euros in state aid, as additional data shows.
Many "Top Performers" Are Part-Time Workers
A good number of the "top performers" are part-time workers, as a study by the Bertelsmann Foundation pointed out a few years ago. Almost half of the employed persons who also receive basic income support have low incomes. Around two-thirds of "top performers" earn significantly less than the average wage.
- Basic Income Support
- Federal Government
- Minimum Wage
- The Federal Government could consider investing in community institutions that offer vocational training to help "top performers" increase their earning potential and reduce their reliance on basic income support.
- To achieve financial independence and stability, some "top performers" might benefit from personal-finance advice and education, as well as assistance in starting and managing a small business.
