Germany: the « Council of the 5 experts » proposes a reduction of 30 % of the minimum income (ALG II) and reopens the debate on combined wages

While the government is preparing a reform of low paid jobs and of the Hartz IV laws, a group of experts which advises the government in economic and social issues is asking for a radical reduction of the minimum income (ALG II-welfare). Combined with a financial incentive to work, experts think they will push 350 000 unemployed persons to work at least part-time. (Ref 06880)
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The report of the five experts, introduced to the government last Friday, considers that the level of the ALG II (Arbeitslosengeld II), a minimum income which combines social security benefits and long-term unemployment benefit, is too high and should be decreased by 30 %. Nowadays, long term job-seekers get 345 euros, plus about 300 euros for housing and heating. In August, 2006, 5.169 million persons earned this allowance, among which 2.83 million were also registered at the unemployment agen

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