Overview

• Researchers propose folding Bürgergeld, Wohngeld and Kinderzuschlag into a single benefit to simplify rules and improve take‑up of regular employment.
• The plan abolishes the €100 earned‑income exemption and introduces a €380 monthly threshold that shapes how much added pay recipients can keep.
• Under the modeled rules, single adults without children retain 35% of earnings above €380, childless couples keep 20%, couples with children keep 35% from the first euro and single parents see a marked gain once above €380.
• Simulations indicate roughly 149,000 additional full‑time‑equivalent jobs, equal to about 230 million extra annual working hours.
• Fiscal effects are put at about €4.5 billion in yearly savings, slightly below the CDU/CSU’s target of around €5 billion, and the study notes no decision on implementation.