Employees in Germany can look forward to more net income from gross income. The background to this is a new draft from the federal government for 2024. However, the joy will only be short-lived, because there is a small catch.
More net salary in December: This is what’s behind it
As the experts at Finanztip explain, the federal government has presented a draft law for the current year on the basic tax allowance, which has an impact on net salary. According to this, the allowance for employees will be retroactively increased by 180 euros. It will therefore rise to a total of 11,784 euros.
What does this mean? Anyone who earns a lower income or an income that is exactly up to the specified limit does not have to pay income tax on it. The primary aim of this is to ensure that the minimum subsistence level in Germany is maintained. On the other hand, this measure also means that more net income is available from the gross income.
Then you can expect the additional amount
Since the publication by the federal government, it has now also been determined when employees can expect to receive more net pay. The 180 euros will be paid in December 2024 – but in one go and therefore only once.
Finanztip has once again calculated how this is reflected in figures using a concrete example: “With an average monthly gross income of 4,000 euros (tax bracket 1, 1.7 percent additional health insurance contribution, no church or children), this brings in around 57 euros more.”
Source: Finanztip
By Dana Neumann
