No Extra Paperwork Needed for Most as Germany Raises Debt Exemption Thresholds in 2026

For the vast majority of German debtors, the upcoming increase in attachment-exemption limits will happen without them lifting a finger. Employers and banks are legally required to apply the revised tables from July 1, 2026 – and credit institutions typically update protected account (P-Konto) limits automatically. Only people who have already obtained an individually determined exempt amount from a local court or tax office need to request a new determination to benefit from the higher boundaries.

The regular adjustment, which rises by roughly two percent, is designed to preserve the minimum subsistence level as living costs climb. The change affects both wage garnishments and the protected balances on P-Konten.

Starting in July, the monthly basic exemption for single debtors with no maintenance obligations reaches 1,587.40 euros – all earnings up to that threshold remain completely shielded. For income exceeding that amount but falling below 4,866.30 euros, thirty percent of the surplus is now protected.

Debtors who support family members receive higher allowances. The first dependent adds 597.42 euros (commonly rounded to 598 euros) to the basic exemption. For each additional dependent up to the fifth, an extra 332.83 euros (rounded to 333 euros) applies. Concretely, someone who must pay maintenance for one person will only have a seizable portion of their income once it exceeds roughly 2,190 euros per month.

Certain types of compensation remain entirely exempt from garnishment in any case: half of overtime pay, holiday bonuses and Christmas bonuses up to 795 euros.

The new limits are part of a broader package of legal changes taking effect in July. These include revisions to the minimum wage, pensions and basic social security benefits:

• Minimum wage and pensions: The statutory floor wage rises to 13.90 euros per hour, with a further increase to 14.60 euros planned for early 2027. Pensions increase by 4.24 percent, bringing the standard pension value to 42.52 euros.
• Care-sector minimum wage: Nursing assistants will receive 16.52 euros per hour, qualified assistants 17.80 euros, and care professionals 21.03 euros.
• Basic income support replaces Bürgergeld: The existing citizen’s benefit is being replaced by a new basic-security system. Sanctions for non-compliance can reach cuts of up to 30 percent or a complete suspension of payments. The so-called “grace period” for protected assets is eliminated. The amount of protected wealth is now graded by age, ranging between 5,000 and 20,000 euros.
• Tax changes: The fuel tax discount ends, likely making petrol and diesel more expensive. In contrast, air transport tax decreases. Additionally, the obligation to take back electronic cigarettes is expanded.

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