Published by Global Banking & Finance Review®
Posted on August 6, 2025
2 min readLast updated: January 22, 2026
Germany plans to cut benefits for new Ukrainian refugees from 2025, reducing welfare under the Asylum Seekers' Benefits Act.
BERLIN (Reuters) -Germany's coalition government plans to cut state benefits for newly-arrived Ukrainian refugees, a draft law seen by Reuters showed on Wednesday, which could result in 100 euros ($116)less per month per refugee, according to estimates.
Ukrainian refugees arriving in Germany benefit from the European Union's Temporary Protection Directive, which enables them to directly claim welfare benefits without going through the asylum process.
Under the draft bill, Ukrainians arriving in Germany from April 1, 2025, would no longer receive Citizen's Allowance but instead receive benefits under the Asylum Seekers' Benefits Act, which are lower.
There are around 1.25 million refugees from Ukraine living in Germany, and around 21,000 entered the country for the first time in connection with the Russian invasion between April 1 and June 30, 2025, according to government figures.
The draft law requires cabinet and upper house of parliament approval before coming into effect by the end of the year.
Germany has long been debating what level of support Ukrainian refugees should receive, as it struggles to make savings on welfare spending, with Bavarian Premier Markus Soeder on Sunday calling for all Ukrainian refugees, not just new arrivals, to be excluded from the higher benefits.
Approximately 64.1% of the labour agency registered Ukrainian nationals in July 2025 were not employed, including those jobless, in courses, or receiving employment-related support.
($1 = 0.8590 euros)
(Reporting by Riham Alkousaa and Holger Hansen; Editing by Alexandra Hudson)
Under the draft bill, Ukrainians arriving in Germany from April 1, 2025, would no longer receive Citizen's Allowance but instead receive benefits under the Asylum Seekers' Benefits Act, which are lower.
There are around 1.25 million refugees from Ukraine living in Germany, with approximately 21,000 entering the country for the first time between April 1 and June 30, 2022.
The draft law requires cabinet and upper house of parliament approval before coming into effect by the end of the year.
Approximately 64.1% of the labour agency registered Ukrainian nationals in July 2025 were not employed, including those jobless, in courses, or receiving employment-related support.
Germany has long been debating what level of support Ukrainian refugees should receive, as it struggles to make savings on welfare spending.
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