Taxpayers' funds should be used for increased wages of employees
In a call for change, Holger Schäfer, a labor market researcher at the Institute of the German Economy (IW Cologne), has highlighted the need for reform in Germany's basic security system. The increasing number of "top-up recipients"—employees whose incomes are supplemented by social benefits—indicates that current social security provisions are inadequate to guarantee financial stability for many workers.
The rise in "top-up recipients" is not limited to foreign workers; domestic employees are also affected. Two-thirds of those with full-time jobs who receive supplements are either single parents or live in households with children. This trend underscores the urgency for reform to improve the adequacy of social protection for both domestic and foreign workers.
Chancellor Merz and the coalition government have recognized that the welfare state, including the citizens' allowance system, requires fundamental reforms to remain financially sustainable while continuing to provide adequate social protection amid demographic changes and economic pressures.
The need for reform is multifaceted. Sustainability and affordability concerns, social abuse and inefficiency, inadequate coverage and pension gaps, and the increasing number of recipients needing supplemental support are key factors driving the need for change.
To address these challenges, the government is pursuing comprehensive reform to adapt the basic security and social welfare systems to contemporary economic realities, demographic shifts, and social challenges. The reforms aim to ensure they are fair, efficient, and financially sustainable for the future.
One of the critical areas of focus is the lack of incentives for those expanding their working hours towards full-time work. Kai Whittaker, from the Union, criticizes the basic security system for punishing those who work more and not providing enough incentive for full-time employment. Dirk Wiese, parliamentary manager of the SPD's parliamentary group, emphasizes the need for a higher minimum wage to ensure that full-time workers can live from their income.
The coalition agreement of the federal government includes a reform of unemployment benefits into a new basic security for job seekers, with a focus on job placement, the care of job seekers, and tightened participation requirements and penalties. Whittaker demands a reform of income limits and transfer deduction rates in basic security during the current legislative period.
The statistics indicate a need for reform in basic security benefits in Germany. In the past year, the number of "top-up recipients" in Germany increased by around 30,000 people, with the majority being foreign employees. The number of employed basic security benefit recipients with German citizenship decreased by around 7,000. Currently, around 5.5 million people in Germany receive unemployment benefits.
The increase in "top-up recipients" among foreign employees is due to an increase in the number of foreign employees. The SPD sees the current figures on "Aufstocker" as a clear signal for a higher minimum wage.
In conclusion, Germany is pursuing comprehensive reform to adapt its basic security and social welfare systems to contemporary economic realities, demographic shifts, and social challenges, ensuring they are fair, efficient, and financially sustainable for the future.
- The rise in "top-up recipients," both foreign and domestic, points to the necessity for reform in Germany's basic security system, as it indicates that current social security provisions fall short in securing financial stability for many workers, potentially affecting business, finance, and general-news sectors.
- The increasing number of "top-up recipients" among foreign employees, coupled with a decrease among domestic workers, underscores the need for reform in the basic security benefits in Germany, which has implications for politics, business, and the general-news landscape, as it signals demographic shifts and economic pressures affecting the country's welfare state.
