Corona and loss of earnings: How you can save money
Basic income support, housing benefit, child allowance, short-time working allowance, assistance for the self-employed and artists and more: the latest regulations and decisions on state subsidies during the coronavirus crisis.
Tips from Regina Benzinger and Iris Hauler, income and budget consultants at pme Familienservice.
Contents:
1. what you can do right now to save money
- Create a budget plan
- Check your insurances
2. state subsidies: The latest regulations
- Applying for basic income support (unemployment benefit II)
- Applying for housing benefit
- Child supplement for families with a low income
- Compensation for loss of earnings when children are cared for at home
- Parental allowance: Adjustments due to the corona pandemic
- November aid: Support for the self-employed and companies in November 2020
- December aid: Support for the self-employed and companies in December 2020
- Bridging aid III: Support for companies, solo self-employed and self-employed members of the liberal professions with an annual turnover of up to 500 million euros
- Support for solo self-employed persons, freelancers and small companies with up to ten employees
- NEUSTART KULTUR: Help for artists and creative people
3. information on short-time working allowance and tax relief for companies
- Short-time allowance
What you can do right now to save money:
Create a budget plan and get an overview
Rent, electricity, internet, GEZ, insurance and other costs such as Netflix, Spotify etc. are monthly fixed costs that you should first note down in a budget book. Compare these fixed expenses with your secure income, such as your salary. This is how you determine the basis of your budget.
Think about which current expenses (e.g. food, clothing) you can save on now. Is a new jacket really necessary? Keep all your receipts and make a note of your spending at the end of each month.
Free online planner from the Sparkasse
App "My budget - spending under control"
Check which insurance policies you really need
Some are downright overinsured, others don't even have liability insurance. Insurance is important, but also expensive. So check carefully which insurance policies you really need.
Here you will find an overview of the most important insurances: www.finanztip.de/sinnvolle-versicherungen
State subsidies: The latest regulations
Application for basic income support (unemployment benefit II):
To prevent people from getting into an existential emergency (e.g. because they can no longer pay their rent), the federal government has simplified access to basic income support. This applies regardless of whether you are a jobseeker, self-employed or in employment (e.g. on short-time working).
You can apply for basic income support by telephone, e-mail or by (in-house) post at the relevant job center. Application forms and other important information can be found on the Employment Agency website.
Anyone who submits an application for basic income support benefits between March 1 and June 30, 2020 and declares that they have no significant assets may keep their savings.
Further information on basic security:
www.arbeitsagentur.de/corona-faq-grundsicherung
www.bmfsfj.de/bmfsfj/themen/corona-pandemie/finanzielle-unterstuetzung
Current: Simplified access to basic income support and Social Service Provider Deployment Act extended until 31.03.2021
The regulations on simplified access to the basic income support systems will be extended beyond the end of the year until March 31, 2021. The necessary legislation has been passed by the German Bundestag.
The Social Service Provider Deployment Act(SodEG) was also extended until March 31, 2021.
You can find more information on basic income support on the BMAS website.
Applying for housing benefit
In principle, all citizens with a low income have a legal entitlement to housing benefit. Whether you are entitled to housing benefit and how much you are entitled to depends on three factors:
- Number of household members to be taken into account
- Amount of the total income under housing benefit law
- Amount of the eligible rent or charge (for owner-occupiers)
You can also apply for housing benefit if you own your own home or a condominium ("Lastenzuschuss").
Please note: Job centers and employment agencies are currently closed. However, they can be contacted by telephone or online. In an emergency, personal contact is also possible.
You can find more information here on the website of the Federal Ministry of the Interior.
Child supplement for families with a low income
Families with a low income are entitled to a child supplement under certain conditions - in addition to child benefit.
If the income is not sufficient for the whole family, parents or legal guardians can receive the child supplement (colloquially: child benefit supplement) in addition to child benefit. However, the application for child supplement must be submitted separately to the family benefits office.
As a rule, you will receive child supplement for 6 months. If the approval period has expired, you must reapply for child supplement.
You are entitled to child supplement if you meet certain requirements. How much supplementary child allowance you receive depends on how much income and substantial assets you, your partner and your child have.
Source: https://www.arbeitsagentur.de/familie-und-kinder/kinderzuschlag-anspruch-hoehe-dauer
Compensation for loss of earnings when children are cared for at home
The Bundestag has passed a law to extend the entitlement to child sickness benefit. The benefit period will be extended and there will also be an entitlement if the child is not ill but has to be cared for at home due to the pandemic.
If the child is ill and parents have to look after it themselves, parents are entitled to time off work. Those with statutory health insurance are also entitled to child sickness benefit for a limited period under certain conditions.
Previously, each parent was entitled to a maximum of 10 working days of child sickness benefit, while single parents were entitled to 20 working days. For 2021, the Federal Cabinet has decided to extend the entitlement period: each parent is entitled to a maximum of 20 working days of child sickness benefit for each child, while single parents are entitled to a maximum of 40 working days per child .
You can find more information here: Child sickness benefit to be extended
Parental allowance: Adjustments due to the corona pandemic
As a result of the Covid-19 pandemic, many parents are no longer able to meet the requirements for parental allowance. Many are affected by short-time working, while others work in essential professions and are urgently needed at their workplace.
The Federal Ministry for Family Affairs, Senior Citizens, Women and Youth has found quick solutions to ensure that the families affected continue to be supported by their parents, including more part-time options, early pregnancy month and less bureaucracy,
You can read about all adjustments to parental allowance here: familienportal.de/familienportal/familienleistungen/corona/elterngeld-corona
November aid: Support for the self-employed and companies in November 2020
The federal government is supporting the self-employed, solo self-employed, businesses and institutions affected by the temporary lockdown in November. They can receive extraordinary economic aid with the first advance payments at the end of November.
All important questions and answers on November aid and other economic aid can be found on the Federal Government's website:
Information from the federal government on support for the self-employed and companies in November
Questions and answers on November aid and restart aid for solo self-employed persons
December aid: Support for the self-employed and companies in December 2020 (as at December 14, 2020)
As with the November aid, the December aid will again provide grants of up to 75% of the turnover from December 2019 on a pro rata basis for the days of the lockdown in December 2020. Some aid still requires approval under state aid law. The application is currently being prepared.
Bridging aid III: Support for companies, solo self-employed and self-employed members of the liberal professions with an annual turnover of up to 500 million euros (as of December 14, 2020)
Subsidies towards fixed costs will be paid to companies affected by the additional lockdown decisions of December 13, 2020. To this end, the extended Bridging Aid III, which is valid until the end of June 2021, will be adjusted accordingly and further improved.
Companies, solo self-employed persons and self-employed members of the liberal professions with an annual turnover of up to 500 million euros (hereinafter referred to as "companies") are eligible to apply. They can receive the improved bridging assistance III. This provides for a pro rata reimbursement of fixed operating costs. The reimbursement amount is generally 200,000 euros, in special cases up to 500,000 euros.
Source and more information on the website of the Federal Ministry for Economic Affairs and Energy
(as of December 14, 2020)
As with the November aid, the December aid will again provide grants of up to 75% of the turnover from December 2019 on a pro rata basis for the days of the lockdown in December 2020. Some aid still requires approval under state aid law. The application is currently being prepared
Support for solo self-employed persons, freelancers and small companies with up to ten employees
The coronavirus pandemic is causing financial difficulties for small businesses, self-employed individuals and members of the liberal professions in particular. That is why the German government has taken a series of measures (PDF, 972 KB) to support companies - quickly and unbureaucratically.
This includes an overview:
- Bridging aid
- KFW special program
- Guarantees
- Tax relief measures
- Support package for start-ups
- Federal funding database
- Short-time allowance
- Simplified access to basic income support
NEUSTART KULTUR: Help for artists and creative people
NEUSTART KULTUR focuses primarily on cultural institutions that are predominantly privately financed. They are to be put in a position to reopen their venues and resume programs in order to offer artists and creatives prospects for employment and a future. Around one billion euros is available for the NEUSTART KULTUR program.
Further information can be found here
Answers to the most important questions about restart assistance
Help for artists and creatives at a glance
Information on short-time working allowance and tax relief for companies
Short-time allowance
Currently, employees without children receive 60 percent of their net income and employees with children receive 67 percent from the employment agency.
Until the end of 2020, a regulation applies according to which the short-time working allowance can be increased under certain conditions. You can find more information here: "How high is the short-time working allowance?"
In addition, existing supplementary income opportunities for employees on short-time work will be extended from May 1, 2020 until the end of 2020.
Work out how much short-time working allowance you are entitled to: www.arbeitsagentur.de/finanzielle-hilfen/kurzarbeitergeld-arbeitnehmer
We advise your employees who have lost track of their finances
Whether divorce or illness: when life circumstances change, this usually also affects the financial situation. What should you do if, for example, you are over-indebted? Over-indebted employees are often absent, lack concentration and can become a safety risk for your company.
We provide advice on income and budget issues to employees who have lost track of their finances and those who want to make more of their income. Further information on our life coaching service.
Contact:
Regina Benzinger
E-mail: regina.benzinger@familienservice.de
*For reasonsof readability, we have decided to use the masculine form for all personal designations.