Germany's jobless benefits set to rise with inflation to €563 a month

Germany's Cabinet agreed to increase benefits for the out-of-work to €563 ($609) a month in 2024 from the current €502 for single adults, due to inflation.

Labour Minister Hubertus Heil had already announced the planned increase at the end of August.

For adults living with a partner, the benefits will rise to €506 instead of the previous €451.

This is an increase of about 12%, affecting around 5 million people in the country.

In January, the coalition government of Chancellor Olaf Scholz' Social Democrats (SPD), the Green Party and the Free Democrats (FDP) introduced a major social welfare reform - replacing the Hartz IV benefits programme for the long-term jobless that had been in place since 2005.

Under the Bürgergeld system, meaning "citizen's money," adjustments for inflation can be implemented much faster than before. It also aims to provide better vocational training for the unemployed.

Benefits for people with children are also set to increase.

For families with young people from the age of 15 to under 18, benefits per child will rise from €420 to €471 in 2024.

For those with children aged 7 to 14, an increase is planned of €348 to €390, and for children up to the age of 6 from €318 to €357.

Parallel to the increase in unemployment benefits, benefits for asylum seekers will also be adjusted annually in line with inflation.

"In percentage terms, the same as the standard rate increase," a spokeswoman for the Ministry of Social Affairs said when asked.

According to the ministry, asylum seekers receive benefits of €228 that is to be used to cover basic needs such as food, housing, heating or clothing, plus €182 in additional spending money.