Germany Unveils Energy, Wage, and Social Reforms Effective Jan 2026

Germany announced a package of reforms taking effect on 1 January 2026 that will lower energy costs, raise wages, and adjust social benefits. The gas‑storage levy is removed, and a federal subsidy will reduce electricity prices for households and firms; combined, the changes are expected to cut energy costs by roughly €10 billion. The 2026 federal budget will allocate more than €128 billion for infrastructure, education, digitalisation, and housing, while the research‑tax credit limit will rise to €12 million. The minimum wage will increase to €13.90 per hour, and child benefit will rise to €259 per month. Pension rules will allow tax‑free supplementary earnings up to €2,000 per month for people who have reached the statutory retirement age.

https://www.bundesregierung.de/breg-de/aktuelles/gesetzliche-neuregelungen-januar-2026-2399838

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