Reforms of Hartz IV, rent subsidies and wage deductions since January 2011: effects on the income of individual household types

The changes of the Hartz-IV regulations called for by the Federal Constitutional Court on 9 February 2010 were implemented on 25 February 2011 by the Bundestag and Bundesrat. In this article the most important additions and changes that impact disposable household incomes, in particular of families with children, are described. A comparison with the situation at the end of 2010, before the new regulations took effect, also shows the concrete effects on net pay and transfer income.