Germany: New laws and other changes in 2025

From consumer rights to healthcare, the new year ushers in many significant changes for residents of Germany. In 2025, social security contributions, the minimum wage and housing benefits will all increase. Parents will also be able to deduct higher childcare expenses from their taxes. The introduction of the electronic patient file is set to transform healthcare, while a new recycling regulation will apply to old clothing, among others.
Here are the most important changes in 2025.

Minimum wage increases
On 1 January 2025, the statutory minimum wage will increase to €12.82 gross per hour, raising the minimum wage threshold by 41 cents compared to 2024. Simultaneously, the mini-job earnings cap will rise from €538 to €556 gross, while the lower limit for midi-jobs will be €556.01. The upper threshold for the transitional earnings range will remain unchanged at €2,000 gross per month, ensuring that employees earning within this range continue to benefit from reduced social security contributions.

Housing benefit increases
At the start of 2025, housing benefit will be adjusted to reflect general price and rent trends, increasing by an average of 15% or approximately €30 per month. This adjustment will benefit around two million households, particularly single parents, families and pensioners. Households already receiving housing benefit will automatically receive the increased Housing Benefit Plus from 1 January 2025.

Entitlement period for short-time working allowance extended
The German government is extending the maximum entitlement period for short-time working allowance to 24 months. This measure will take effect on 1 January 2025 and remain in place until the end of the year, after which the standard maximum period of 12 months will apply again. Without this extension, many companies already relying on short-time work would likely face significant staff reductions in the coming months.

Retirement age rises 
Since 2012, the retirement age in Germany has been gradually increased as part of the “retirement at 67” policy, with the age limit reaching 67 by 2031. Currently, people born in 1960 reach their regular retirement age at 66 years and four months. For people born later, the retirement age will continue to rise in two-month increments. From the 1964 cohort onwards, the age limit is 67.
Similarly, the full pension for particularly long-term insured individuals — originally introduced as “retirement at 63” — is also subject to a gradual increase in the age limit, from 63 to 65. For example, individuals born in 1961 can access this pension at 64 years and six months, with the age limit increasing by two months annually. From the 1964 cohort onwards, the standard age for this pension is set at 65.

The electronic patient file ePA
Starting 15 January, health insurance providers are required to offer the electronic patient file (ePA) to all individuals with statutory health insurance. The rollout will follow a phased approach, beginning with trials in designated model regions to ensure functionality and effectiveness before being expanded nationwide.

No more amalgam fillings at the dentist
From 1 January 2025, dental practices across the EU will no longer be permitted to use amalgam for new fillings, a step aimed at reducing the use of environmentally harmful mercury. Tooth-coloured plastic fillings will replace amalgam as the standard material.
Aesthetically superior composite fillings remain available but often come with additional costs. Dentists are required to inform patients about the available options and associated costs before proceeding with treatment.

Deutschlandticket gets more expensive
From January, the Deutschlandticket, the nationwide travelcard for local and regional transport, will cost 58 euros instead of 49 euros per month.
Since May 2023, the Deutschlandticket has made it possible to travel nationwide on all local and regional buses and trains at a standardised monthly price. Around 13 million users have embraced the card, which has significantly simplified the previously complex fare structure.

Increased benefits for people in need of care
Long-term care insurance benefits will increase by 4.5 percent on 1 January 2025 – including benefits for inpatient care. This will relieve those in need of care of the burden of care-related expenses that they have to bear themselves.

Higher contribution rates for long-term care 
The contribution rate for social long-term care insurance will rise by 0.2 percentage points. This step is necessary to ensure the solvency of social long-term care insurance.

Basic tax-free allowance and child tax-free allowance increase
The basic tax-free allowance — the portion of income exempt from income tax — will increase to €12,096 in 2025 and €12,348 in 2026. This allowance ensures that an adult’s minimum subsistence level remains tax-free.
Similarly, the tax-free allowance for children will rise to €9,600 in 2025 and €9,756 in 2026. Additionally, child benefit will increase by €5 starting in January, along with the emergency child allowance, providing extra support for low-income families.

Letter postage increases
Postage costs will increase on 1 January. Sending a standard letter will then cost 95 cents instead of the current 85 cents. The biggest price increase is for postcards, for which customers will now also have to pay 95 cents (previously 70 cents). Further increases: In future, compact letters will cost 1.10 euros, large letters 1.80 euros and maxi letters 2.90 euros. Parcel shipping will also become more expensive: the M parcel will now cost 5.19 euros instead of 4.79 euros.

Fewer cookie banners
Henceforth, users will no longer need to repeatedly provide consent for cookie usage while browsing the internet. Instead, preferences — whether consent or refusal — can be stored permanently.

Recycling obligation for used clothing
Starting 1 January 2025, new regulations across the EU will govern the disposal of used clothing. Under the EU Waste Directive, all fabric items must be collected and recycled. Old textiles, including those that are torn or worn out, must be placed in designated clothing collection containers. Hence, textiles —whether it’s worn-out jeans, faded curtains or torn bedsheets — will no longer be allowed in household waste. The goal is to gradually reduce waste and enhance textile recycling.
However, heavily soiled or contaminated textiles, such as oil rags, may still be disposed of in the general waste bin.

Right to Reduction in Mobile Telephony
If your internet connection fails to provide the bandwidth specified in your contract, you have the right to either reduce your payment for internet access or cancel the contract without notice. The Federal Network Agency has set clear guidelines and developed an official measurement tool for fixed-line internet, allowing users to verify insufficient internet performance.

Bank transfers within ten seconds
Starting 9 January, real-time transfers will be available across Europe. Instant transfers will be processed regardless of the day or time, with funds arriving in the recipient’s account within ten seconds. This means there will be no more waiting for the next banking day. Additionally, the sender will be notified within ten seconds whether the transfer has been successfully received by the recipient.

Femi Awoniyi/© AfricanCourierMedia

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