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Germany Confirms Foreign Wages Count Toward Wohngeld

Local and state guidance clarifies how foreign pay is converted, how the statutory tax and social deductions apply, plus which documents applicants must submit.

Overview

  • Official guidance from the Stadt Augsburg social office and Bayerisches Staatsministerium says foreign-earned wages are treated the same as German wages when assessing Wohngeld eligibility under the Wohngeldgesetz.
  • Applicants must convert salaries paid in other currencies to euros using the Deutsche Bundesbank exchange rate for the day they file their Wohngeld application.
  • When it is expected that taxes or mandatory social contributions will be paid, authorities apply a 10 percent flat deduction under §16 WoGG to the calculated annual income regardless of whether those payments are made inside or outside Germany.
  • People employed by foreign firms or who commute across borders must supply the same proofs as domestic workers, such as an employer’s earnings statement and recent pay slips or the last 12 months of payslips, and extra proof if contributions are not itemised.
  • The clarification matters as rents have risen sharply, making Wohngeld more relevant to low- and middle-income households, and a fixed-term job does not bar an application though it can shorten the grant period.