receive Arbeitslosengeld II benefits at the same time. Job income is debited from Arbeitslosengeld II payments according to a formula that leaves a certain amount of the additional revenue untouched. These revenues are: a certain amount of savings (which increases with age); €100 plus 20 percent of the wage up to €800 plus 10% of the wage up to €1200 (up to €1500 if there are children). Through this mechanism Arbeitslosengeld II can be regarded as a sort of minimum wage floor for employees without assets, where the minimum wage is not fully paid by the employer but assured by the state. There are criticisms that this defies competition and leads to a downward spiral in wages and the loss of full-time jobs. The Hartz IV reform merged the federal level unemployment agency with the local level welfare administration. This facilitated a better, case-oriented approach to helping unemployed people find work and improve their situations. The plan's objective is to reduce caseloads from 400 unemployed persons per agent to not more than 75 (aged 25 or less), or not more than 150 persons over the age of 25. For difficult cases, dedicated case managers may be deployed. Legally, however, the agencies remain separate. The Hartz IV reforms continue to attract criticism in Germany, despite a considerable reduction in short- and long-term unemployment. This reduction has led to some claims of success for the Hartz reforms. Others say the actual unemployment figures are not comparable because many people work part-time or are not included in the statistics for other reasons, such as the number of children that live in Hartz IV households, which has risen to record numbers. About 7 million people get Hartz IV benefits, of which 2.2 million are unemployed. The budget is estimated to be 20 bn euro. In April 2018, 55% of the recipients had a migration background. According to the Federal Employment Agency (German: Bundesagentur für Arbeit) this was due to the migrants lacking either employable skills or knowledge of the language. In a November 2019 ruling the Federal Constitutional Court prohibited controversial harsh sanctions against benefit recipients. It outlawed complete payment cuts and decided that 30-percent cuts would only be permissible under specific conditions, as such punishments endangered jobseekers' minimum standard of living. Successor In November 2022, the Bundestag decided to replace Hartz IV with the so-called Bürgergeld on 1 January 2023, which reduces conditionalities