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How will the new €9 ticket work?


✍️ Why did the govt introduce a €9 ticket?

Amid the significant rise in fuel prices, the govt has decided to relieve its citizens with a one-off action. In order to reduce fuel consumption in Germany, buses and train tickets for local and regional transport will cost only €9 per month for 90 days. This will incentivise commuters to switch from using their cars to using public transport. The ticket is expected to be available from 1 Jun.

✍️ What is the use of the €9 special ticket?

The €9 ticket will be valid across Germany so other than local transport, passengers can also travel between states using buses, suburban and underground trains as well as regional trains. Passengers from one German state can use public transport in another German state with this ticket. However, the ticket is not applicable for long-distance traffic of Deutsche Bahn.

✍️ What is the validity of the €9 ticket?

The ticket will be available for passengers from 1 Jun to 31 Aug. However, if someone buys the monthly ticket mid-month it will only be valid till the end of that particular month. The monthly pass also does not renew automatically. One will need to pay €27 in total to avail of the ticket for 90 days.

✍️ Where can one buy the €9 ticket?

The tickets will be available online on the Deutsche Bahn navigator app and local transport company's websites. The tickets can also be purchased at customer centres and also through ticket vending machines. According to Verband Deutscher Verkehrsunternehmen, the govt also plans to launch a nationwide app where passengers can purchase and find information about the ticket.

✍️ Who will finance the €9 ticket scheme?

The govt will spend €2.5bn on this ticket scheme. However, this money should be provided to the transport companies and associations before the start of the scheme via the federal states, stated the Association of German Transport Companies. They also demanded €1.5bn from the states to compensate the transport firms to avoid a ticket price hike due to the rise in energy rates.

✍️ What are the concerns surrounding the €9 ticket scheme?

The passenger association Pro Bahn has cited concerns around the implementation of the €9 ticket scheme. They predict passenger overloads and overcrowded trains, especially on popular tourist routes. According to them, more trains need to be provided for smooth implementation of the scheme. However, the Transport Association said that they could not offer more trains as there was no more capacity.

✍️ How will the €9 scheme affect monthly or annual pass holders?

Passengers who hold a public transport monthly pass will receive a loyalty bonus from their transport association. The reimbursement will take place automatically via a reduction of the direct debit or a credit note. Passengers will still be able to take advantage of the offers provided by their tickets such as taking along another passenger on their ticket on weekends.

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How to understand your payslip?


📌 How much is the Lohnsteuer or 'income tax'?

A person needs to pay between 14% and 42% as 'Lohnsteuer' or income tax for earnings up to €277,826. All earners above this amount are taxed at 45%. Since Germany has a progressive tax system, the higher a person earns the more they pay. People are also given a tax-free allowance which is €9,984 for individuals and €19,968 for couples who choose to submit a joint income-tax assessment.


📌 How much is the Rentenversicherung or 'pension insurance'?

A person pays a whopping 18.6% of their salary as 'Rentenversicherung' or pension insurance. The employer pays half of this amount. The govt is planning to increase the pension contributions in stages to reach 20% of salary by 2025. If a person is working full-time or on a temporary basis in Germany, pension contributions tend to be non-negotiable and are required by law.


📌 What is Krankenversicherung or 'health insurance'?

The 'Krankenversicherung' is the amount of money a person pays for his health insurance each month. The general contribution rate for public health insurance is 14.6%, of which the employer pays half. If the job contract does not include sick pay, the contribution is set at 14%. If a person is privately insured, their monthly premiums are calculated as a flat fee according to their tariff.


📌 What is Pflegeversicherung or 'long-term care insurance'?

The 'Pflegeversicherung' or long-term care insurance is paid so that people can receive care such as assistance with shopping or live-in care at any point in their lives if they need it. This represents 3.05% of gross income if a person has children and 3.40% if they are childless. This tax is split between the employer and the employee.


📌 What is Arbeitslosenversicherung or 'unemployment insurance'?

The 'Arbeitslosenversicherung' or the unemployment insurance is paid so that a person can claim 60% of their salary for a year in case they lose their job. This is known as Arbeitlosengeld I. Currently, the contributions are at 2.4%, of which the employer pays half. If a person is still unemployed after a year, they move into Arbeitslosengeld II, known as Hartz IV.


📌 What is Kirchensteuer or 'church tax'?

The 'Kirchensteuer' or the church tax is a tax that religious groups charge their members to finance their institutions, staff and maintenance of old religious buildings. Whether expats have to pay this tax or not is determined when they are asked to state their religion during address registration. The tax can range from 8-9% depending upon the state. Atheists can also choose not to pay this tax.


📌 What is Solidaritätszuschlag or 'solidarity charge'?

The 'Solidaritätszuschlag' or the 'solidarity charge' was introduced as a special 'tax' in 1991 mainly for development projects in eastern Germany after reunification. Although almost everyone paid the tax earlier, only the top earners who earn more than €96,800 as an individual or more than €193,600 as a married couple currently pay it. It is calculated at 5.5% of one's income tax.

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Bavaria plans to introduce tuition fees for non-EU students

The state of Bavaria is planning to introduce tuition fees for students from non-EU countries. This comes after a draft for reforms in the Higher Education Innovation Act was put forth in the state parliament in June. Although the draft law says that the education of German and EU students will be financed by the state, it opens up the possibility of charging fees for third-country nationals.

📌How does the tuition fee system for students normally work?

The 16 federal states in Germany are free to set their tuition fees, within a 'socially manageable' structure. In reality, all states offer free tuition for German and EU students doing a Bachelors's or Masters's. degree, and a vast majority also offer free education to non-EU nationals. Baden Württemberg and Saxony are some of the states that charge tuition fees for non-EU students.

📌 What are people's reactions to Bavaria's tuition fee plans?

Students are furious at Bavaria's plans to introduce tuition fees for non-EU students, arguing that the move would widen inequality. Tuition fees 'are poison for equal opportunities,' said the German Student Support Association. The Free Association of Student Unions said the fees would create a "'two-class system in the lecture hall'. In 2013, Bavarians voted to abolish general tuition fees.

Courtesy: Newsbriefs

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MIG Language Academy is conducting an online webinar on August 27 ,at German Time 11.00 AM ( 2:30 P.M IST).

90 slots only available on Zoom. No registration. First come first join😹.

Focusing Topics are :-

1.How can I enter Germany after +2?
2. Studienkolleg
3. Ausbildung
4. Bachelors and Masters
5. IT market
6. Importance of learning Language
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Live session goes on MIG Language Academy YouTube Channel.

A 1 and A 2 start on September 12.
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Contact us via WhatsApp
for Registration: +4917657734986

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German „പഠിക്കാം പഠിപ്പിക്കാം ഒന്നായ് മുന്നേറാം“