If you work a minijob, you get welfare (housing, utilities, health insurance, cash) + the first 100€ you earn are yours to keep. On the next ~350€ you'll pay 20% for social insurance and get to keep some of it, the rest is deducted from your benefits, so you'll keep 100% of your welfare + 184€. There's no way you're worse off than on benefits if you're working.
If you work more, your benefits will be reduced until you earn enough to not get any benefits. Roughly 20% of people on benefits work, but make less than benefits, so they get the rest via benefits ("Aufstockung").
So I work, but still get roughly the same as if I didn't work. 200€ per month more doesn't seem to be a great incentive to start working again if it's, let's say, one of the less desirable jobs.
Furthermore, the "Aufstockung" means that effectively the tax payer is footing the bill for companies unwilling to pay a reasonable wage.
15-20% more is some incentive, I agree though, the delta should be larger.
> Furthermore, the "Aufstockung" means that effectively the tax payer is footing the bill for companies unwilling to pay a reasonable wage.
In some cases, yes. But you can also view it as "we need to employ people, but their skills really aren't competitive, so it's better to give them some money from taxes than to give them 100% from taxes".
> the cycle of "I'll take whichever bad choice is least bad right now because I'm desperate."
Welfare covers the basics and provides for a modest life, no desperation included.