Low-income earners suffer the most, the Corona-crisis

An Apple cost you in may, 16.1 percent more than a year ago. That's absolutely only a few Cents and may appear as a single message, not spectacular, but for 7.

Low-income earners suffer the most, the Corona-crisis

An Apple cost you in may, 16.1 percent more than a year ago. That's absolutely only a few Cents and may appear as a single message, not spectacular, but for 7.7 million German households this is a horror news.

  • All the information about the Corona-crisis in the Live Ticker of FOCUS Online

Because Apples, pears, and other fruit are just the tip of the iceberg. In the Corona-crisis food have risen by a total of 9.8 percent compared to the previous year, as the Freshness Index of the agricultural market information company (AMI) shows. And no group in our society there is a higher part of their small income on food, as the nearly eight million households with a net income of less than 1300 euros net per month.

Also interesting: 300 euros children bonus: Also, Hartz IV recipients will get the money without any deductions.

680 Euro fixed costs at a maximum of 780 euros of income

If you are a Single, comply with these 1300 Euro approximately to the earnings you achieve with the minimum wage. The average data of the Federal Statistical office to show how little that is in normal economic times. So a low-income is per month 1002 Euro. In the case of a minimum Wage, this sum is likely to be even higher, because the cut is down from the 3.3 million households, whose income is even below 900 euros a month. Own calculations

Of the 1002 Euro die 48.7 percent, or 488 Euro for rent, and heating costs for the apartment. 174 the Euro prior to the crisis, and 192 Euro due to the recent price increases in food, beverages and tobacco make up the second largest item of expenditure. 680 euros are so monthly fixed costs, which are Affected can save you in the crisis.

content check: The gross-to-net calculator 2020 remains So much net them by the gross

at the same time her income decreases, but The Munich-based Ifo Institute estimates that in may, 7.3 million employees in short-time working had to go. So the concerns about a sixth of all Jobs in Germany-and many low-income earners. Since only 60 per cent of the salary to be paid, decreases the income of a minimum wage recipient of 1300 euros to 780 euros net.

Who lives under minimum wage, pays you money

The fixed cost of 680 euros like you said. For all other expenses, only 100 euros per month remain. And a maximum value of: firstly, 1300 net are the Maximum of what people earn in the lowest income group in Germany, and secondly, we previously assumed that even with the maximum income, only the average expenditures of the group as a whole.

we Expect that a minimum wage receiver outputs normally in the month, not 1002, but 1200 Euro a month, it is with short-time work even 34 euros in Minus. The same is true for someone who has the average expenditure, but only 1100 Euro net. He pays according to the fixed costs 20 Euro per month.

Such problems, the Federal government are not aware of. In the past few months has been tried with some measures, even low more money earners at the same time.

As the Federal government to the poor

help is the first at the end of may has increased the short-time working money. In the future, it will be from the fourth month of the cover 60 to 70 percent from the seventh month on the 80-per-cent increase. Anyone who has been directly sent in March to the beginning of the economic restrictions of the use of short-time work, so it would get from now on 780 instead of 680 Euro, and from mid-September, then 880 Euro.

As a second measure was reduced in the current economic stimulus package, the VAT from 19 to 16 percent, respectively, in the reduced rate from 7 to 5 percent. The Federal Statistical office has calculated, how much of it arrives in the best case, the consumer. The basis of the average shopping basket, with which the Inflation is calculated.

contains, as the office explains, but to 30 percent in products for which there is already no VAT applies. This applies, for example, for Rent that are exempt in the private case, in Germany of the VAT.

on the Basis of the above, and experience of tax cuts in the past, the statisticians assume that such food will decline this year by an average of only 2.2 percent in the price and living costs such as electricity, water and heating by 0.8 percent. For our example low-income earners from the above statement that brings a Saving of just 8,37 euros a month – less than an hour of work with minimum wage.

social organizations and researchers call for 200 euros Bonus per month

The biggest Bonus there is for parents of children under the age of 25. You will receive 300 Euro per child – however, in two Instalments of € 150 in September and October. A real improvement of the current situation this is not. However, the short-time work increases with at least one child in the household is money from 60 to 67 Euro, later analog to 77 and 87 percent.

all of This benefits low-wage earners, however little. While people with higher income rates, your Savings, or luxury, have to reduce expenditure, it hits poorer people harder, because they have high fixed costs, which can hardly be saved.

that's Why a lot of parties and associations have been asking for months, "Corona-charge" for low-income earners and social welfare recipients. The Berlin Senate has introduced already at the beginning of may a motion in the Federal Council, to increase the standard benefit for Hartz IV temporarily to Euro 100 per month. An Alliance of top representatives of various social organisations of the panels through the children's Fund to the joint welfare Association, calls for a similar increase.

The party "The Left" and their related poverty researcher Christoph butter ways to go even further. They are demanding a monthly Bonus of 200 euros for all of the people with low income, so in addition to Hartz-IV-recipients, too needy pensioners and workers.

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Updated Date: 28 June 2020, 10:26

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