We explain exactly what the draft law says, who will be affected by the planned changes, and how the transition will be regulated.
Background: Why the federal government wants to change the citizen's income
Since March 2022, refugees from Ukraine in Germany have been receiving citizen's income if they are unable to support themselves. This was made possible by a special regulation in connection with the EU Mass Influx Directive. It allows Ukrainians to enter Germany (or other EU countries) without applying for asylum and to live and work here. In Germany, this regulation is enshrined in Section 24 of the Residence Act (AufenthG ).
Legally, Ukrainians are therefore not considered asylum seekers, but are treated as equivalent to other persons entitled to protection, such as recognized refugees. This gives them access to the labor market, the healthcare system, and the education system, and entitles them to family reunification and social benefits (citizen's income).
The federal government now wants to partially end this special regulation. The background to this is an agreement in the coalition agreement between the CDU/CSU and SPD. It stipulates that newly arrived refugees from Ukraine will in future be subject to the Asylum Seekers Benefits Act.
The federal government cites as justification the fact that the very high number of Ukrainian refugees arriving in 2022 has now declined significantly. Against this backdrop, responsibility for newly arriving refugees is to be reorganized.
Who specifically is affected by the new law?
The planned changes do not apply to all Ukrainians in Germany. The decisive factor is a cut-off date: April 1, 2025.
The new law stipulates that all refugees from Ukraine who have applied for or received their Residence permit Section 24 of the Residence Act (temporary protection) for the first time after March 31, 2025, will be affected by the new regulations in the future.
Anyone who was in Germany before this deadline and receives or has received citizen's income should, in principle, continue to receive the benefits or be able to receive them in the future. Nothing will change for this group as a result of the current draft law. According to the federal government, well-integrated people should not be retroactively disadvantaged.
Change to the Asylum Seekers Benefits Act – What does this mean?
For Ukrainians who have recently arrived, however, the draft law provides for a change to the Asylum Seekers Benefits Act. This means that if they are in need of assistance, those affected will in future only receive benefits under the AsylbLG. This reduces the monthly support by around €120 compared to the citizen's income.
By way of comparison, single adults currently receive a standard allowance of €563 per month under the citizen's income scheme. Benefits under the Asylum Seekers Benefits Act currently amount to €441 per month. Of this, €196 is allocated to personal needs and €245 to essential needs, such as food and accommodation.
The draft bill also contains changes in the area of social assistance under Social Code XII. In future, it will be stipulated by law that persons entitled to benefits under the Asylum Seekers Benefits Act will no longer receive social assistance under SGB XII. This will particularly affect people who have previously received social assistance due to age, reduced earning capacity, or special circumstances.
What changes are being made to health insurance?
When receiving citizen's income, beneficiaries are usually covered by statutory health insurance. The contributions are paid by the job center.
The planned change to the Asylum Seekers Benefits Act will alter this coverage: those affected will no longer have regular statutory health insurance, but will receive medical services under the Asylum Seekers Benefits Act.
These are generally more limited and are usually organized via health insurance certificates or special billing models of the local authorities.
Against this background, the draft law contains an important transitional provision for medical care. Treatments that have already begun should not be automatically terminated.
If treatment was started while the person was still covered by statutory health insurance, it should be possible to continue this treatment in individual cases even after the person has switched to the Asylum Seekers Benefits Act. This is to prevent necessary medical care from being abruptly terminated or interrupted.
Is there a transitional arrangement for the citizen's income?
Yes—to avoid hardship, the draft law includes a transitional provision. It applies to individuals who are subject to the new cut-off date rule but have already been approved for benefits under SGB II (citizen's income) or SGB XII (social assistance).
The transitional arrangement stipulates that:
- already approved benefits will continue to be paid temporarily
- the transition period ends with the current approval period, but no later than three months after the law comes into force
- the transition to the Asylum Seekers Benefits Act will only take place after the transition phase
This is intended to prevent those affected from suddenly finding themselves without benefits or having to change service providers in the middle of the approval period.
Work obligation and integration into the labor market
Another focus of the draft bill is integration into the labor market. People who are able to work and receive benefits under the Asylum Seekers Benefits Act will in future be under greater obligation to actively seek work.
If they fail to comply with this obligation, the competent authorities can oblige them to take up so-called work opportunities. This regulation already applies to regular asylum seekers and is now to be extended to Ukrainians who receive benefits. These are temporary measures, often referred to as "one-euro jobs. "
They are intended to facilitate re-entry into the labor market and consist of charitable activities, for example, for local authorities, associations, or other public institutions. Participants do not receive a regular wage, but rather an additional expense allowance from social services.
This is intended to promote integration into the labor market. At the same time, false incentives should be avoided.
Restrictions on protection in other EU countries
The draft law also contains provisions on so-called secondary migration. This refers to cases in which individuals have already been granted temporary protection in another EU member state and have subsequently traveled on to Germany.
In future, these individuals will only be granted so-called bridging benefits in Germany. These are very limited benefits that merely cover the minimum subsistence level.
In these cases, entitlement to regular citizen's income, social benefits, or benefits under the Asylum Seekers Benefits Act is no longer provided for.
The German government's goal is to ensure that those seeking protection receive their social benefits in the EU country that first granted them temporary protection. At the same time, the aim is to prevent people from receiving benefits multiple times in different EU countries or moving to another member state solely because of higher social benefits.
Conclusion: What happens now?
The first reading of the draft bill in the Bundestag is scheduled for Thursday. This will be followed by further deliberations in the relevant committees and in the Bundesrat. Both the Bundesrat and the committees can propose amendments to the bill. This process can take several weeks. The bill will then be debated again in the Bundestag and finally put to a vote.
Whether, when, and in what form the law will be passed is still open at this point. However, it is considered very likely that it will receive a majority vote.
Important for those affected: The current draft law is not yet applicable law. As long as the law has not been passed and entered into force, the current legal situation remains in place. Migrants, and Ukrainians in particular, should closely follow further developments and find out at an early stage which regulations could apply to them in the future.
