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For working spouses/partners, what effect does the choice of tax bracket have on certain benefits?

The choice of tax class (one of the two tax class combinations and the factor method) can influence the amount of wage or salary replacement benefits for employed spouses/life partners such as, for example, unemployment benefit I, unemployment benefit in the case of further vocational training, sickness benefit, care sickness benefit, injury benefit, transitional benefit, parental benefit and maternity benefit or the amount of the wage entitlement in the case of partial retirement. A tax class choice made before the beginning of the year is generally recognised by the Employment Agency when granting remuneration/wage replacement benefits.

If the spouses/partners change tax classes during the course of the calendar year or if they choose the factor procedure, this can have unexpected effects on the payment of wage or salary replacement benefits, for example, due to the unemployment of one spouse or the amount of the wage entitlement in the case of partial retirement. If you expect to have to claim wage or salary replacement benefits in the foreseeable future, or if you are already receiving such benefits or are going into semi-retirement, you should therefore consult the relevant social security institution about the effects on the amount of the wage or salary replacement benefits or your employer about the amount of the wage entitlement in the case of semi-retirement before choosing a new tax class combination.

Note

Further information can also be found in the "Current Tip" and in the "Wage Tax Primer 2021".

 

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