The chair of the German Confederation of Trade Unions (DGB), Yasmin Fahimi, has proposed a premium for recipients of Germany’s basic income support (Bürgergeld) who are employed full-time, as discussions surrounding an upcoming reform of the system progress.
Speaking to Funke-Mediengruppe newspapers, Fahimi highlighted that a significant majority – approximately 90% – of those receiving supplementary income alongside their wages are engaged in part-time or mini-jobs. She suggested that these employment circumstances are frequently driven by systemic issues, citing examples within the hospitality sector where employees are offered limited hours coupled with the expectation of relying on state support to supplement their income.
Rather than implementing a tax-funded “combination wage” Fahimi advocated for financial incentives for full-time Bürgergeld recipients, potentially through a premium that would allow them to retain a larger proportion of their full-time salary.
Fahimi dismissed calls for stricter sanctions against Bürgergeld recipients as a “superficial debate” asserting that such measures would violate Germany’s constitution and would not improve employability. She emphasized the need for investment in enhanced counseling and placement services.
Acknowledging that the majority of the 1.7 million individuals receiving Bürgergeld who are available for the labor market lack vocational training, Fahimi defended the current system’s focus on gradual qualification as a crucial element of reform. She also criticized the disparity in scrutiny applied to low-income individuals versus high-income earners, urging improved resources for tax authorities to combat tax evasion more effectively.
Fahimi strongly condemned organized fraud related to Bürgergeld, calling for the government to “dry up” these illegal operations. She detailed instances of individuals from Southeastern Europe being lured to Germany under false pretenses, provided with fabricated employment contracts and housed in substandard accommodations at inflated prices, often subsidized by state housing allowances.
Furthermore, Fahimi proposed granting local authorities greater flexibility in determining permissible accommodation costs for Bürgergeld recipients, particularly those facing exorbitant daily lodging expenses. She also suggested regulatory intervention, including a potential rent freeze, to manage the housing market.