(de-news.net) – Germany’s transition into 2026 brings a wide package of fiscal, labor, and social-policy revisions that affect household budgets, employer costs, and energy-related charges:

• The tax-free income allowance increases from 12,096 to 12,348 euros, so that only earnings above that amount are taxable for single filers. The statutory minimum wage rises to 13.90 euros per hour, accompanied by higher minimum apprenticeship pay—724 euros in the first year, followed by rising mandatory rates in subsequent years. The earnings ceiling for ‘minijobs’ increases from 556 to 603 euros, keeping workers below that threshold exempt from health, long-term-care, and unemployment insurance.
• Restaurant and café meals fall under the reduced seven-percent value-added tax. However, some economists had predicted that restaurant prices would hardly fall, as many operators reported that higher food and wage costs precluded reductions.
• Commuting allowances are standardized at 38 cents per kilometer. The new rule replaces the previous two-tier structure.
• With passage of the federal pension package, an ‘active pension’ rule takes effect, allowing insured retirees to earn up to 2,000 euros monthly without taxation. The government aims to encourage work beyond the statutory retirement age.
• Family benefits expand slightly: monthly child benefits rise to 259 euros, the parental tax allowance increases to 3,414 euros per parent, and the immediate supplement for children in citizen’s-income households grows to 25 euros.
• Social-insurance contribution ceilings increase markedly. Health and long-term-care insurance thresholds rise to 5,812.50 euros in monthly gross income, while pension and unemployment ceilings move to 8,450 euros. These adjustments, driven by 2024 wage growth, raise payments for higher earners despite the continued exemption of income above the thresholds. Moreover, 42 statutory health insurers increase supplementary contributions to an average of 3.36 percent, about 0.23 percentage points higher than the previous year, in addition to the universal 14.6-percent rate.
• The gas-storage levy is abolished. Formerly costing typical households 30 to 60 euros annually and accounting for roughly 2.4 percent of retail gas prices, it will now be covered by the Federal Government. Because gas tariffs reflect multiple components, end-consumer prices will not automatically fall.