Unemployment Benefits
In Germany there are two types of unemployment benefits: ALG I (insurance-based, 60-67% of notional net income) and Bürgergeld (basic provision, fixed rates from €357 to €563/month). ALG I requires at least 12 months of contributions, Bürgergeld is paid when means are insufficient for living [1].
ALG I — Arbeitslosengeld I
Arbeitslosengeld I (unemployment benefit I) is an insurance benefit for those who worked and paid contributions to unemployment insurance for at least 12 months.
Eligibility Requirements
To receive ALG I, you must [2]:
- Have worked at least 12 months in the last 30 months (with unemployment insurance contributions)
- Be registered as unemployed (arbeitslos) with Agentur für Arbeit (Federal Employment Agency)
- Be actively seeking work for at least 15 hours per week
Payment Amount
ALG I pays 60% of your Leistungsentgelt (notional net income), or 67% if you have at least one child receiving Kindergeld. The commonly quoted "60% of net salary" is misleading — ALG I is not 60% of your payslip take-home pay [3].
Maximum ALG I (2025): €3,255/month (western states), €3,157.50/month (eastern states) [4].
How ALG I is calculated
| Step | What happens |
|---|---|
| 1. Bemessungsentgelt (gross base) | Average daily gross salary from the last 12 months of employment |
| 2. Beitragsbemessungsgrenze (contribution ceiling) | Gross base is capped — earnings above the ceiling are excluded from the calculation |
| 3. Leistungsentgelt (notional net) | Standardized tax and social security deductions applied using fixed tables, not your actual payslip deductions |
| 4. ALG I | 60% (or 67% with child) of this Leistungsentgelt |
Why "60% of net" is not what you expect
| Factor | What people expect | What actually happens |
|---|---|---|
| "Net" in the formula | Payslip take-home pay | Leistungsentgelt — a standardized notional net that may differ from actual take-home |
| Tax class effect | Current personal tax situation | Tax class registered on January 1 of the claim year; couples in III/V may see a larger gap |
| Contribution ceiling | 60% of their full net | Gross is capped at the Beitragsbemessungsgrenze — the maximum ALG I amounts above reflect this cap |
Example (approximate, Steuerklasse I, no children, western Germany, 2025):
| €4,000/month gross | €9,000/month gross | |
|---|---|---|
| Above Beitragsbemessungsgrenze? | No | Yes — ~€950/month excluded |
| Actual payslip net | ~€2,600 | ~€5,500 |
| ALG I (60% of Leistungsentgelt) | ~€1,570 | ~€2,800 |
| If it were 60% of actual net | ~€1,560 | ~€3,300 |
| Effective replacement rate | ~60% | ~51% |
At €4,000 gross, standardized deductions closely match actual deductions — ALG I works roughly as advertised. At €9,000 gross, ~€950/month of income is excluded by the contribution ceiling and standardized social security deductions exceed actual ones. The effective payout drops to ~51% of take-home — approximately €500/month less than the "60% of net" headline suggests.
Estimates use standard deduction tables. Individual amounts vary by tax class, church tax, and other factors. Use the ALG I calculator on arbeitsagentur.de for your specific case.
The lifestyle impact is larger than the number suggests. Rent, insurance, and fixed costs stay the same. If fixed costs consume half of net income, dropping to ~51–60% of Leistungsentgelt cuts the remaining disposable budget by far more than 40%.
Payment Period
The ALG I payment period depends on contribution history and age [5]:
| Contribution Period | Age | Maximum ALG I Period |
|---|---|---|
| 12 months | Any | 6 months |
| 16 months | Any | 8 months |
| 20 months | Any | 10 months |
| 24 months | Any | 12 months |
| 30 months | From 50 years | 15 months |
| 36 months | From 55 years | 18 months |
| 48 months | From 58 years | 24 months |
How to Apply
- Register as job-seeking (arbeitssuchend) with Agentur für Arbeit — at least 3 months before termination or within 3 days of receiving termination notice [6]
- On the first day of unemployment, register as unemployed (arbeitslos) — in person at Agentur für Arbeit or online
- Submit ALG I application — online through the portal or in person
Important: Registering as job-seeking and as unemployed are two different steps. The first is done in advance, the second from the moment of actual unemployment.
Bürgergeld
Bürgergeld (citizen's benefit, replaced Hartz IV / ALG II since 2023) is basic provision for those in need who cannot support themselves through work or other income.
Eligibility Requirements
Bürgergeld can be received by [7]:
- Able to work (erwerbsfähig) — age 15–66 years, able to work at least 3 hours per day
- Permanent residence in Germany
- In need (hilfebedürftig) — own income and assets insufficient for living
Payment Amount (2025)
Base rates for Bürgergeld effective January 1, 2025 [8]:
| Category | Amount/month |
|---|---|
| Single adult (Regelbedarfsstufe 1) | €563 |
| Adult in couple (each, Regelbedarfsstufe 2) | €506 |
| Adult in someone else's household | €451 |
| Youth 14–17 years | €471 |
| Child 6–13 years | €390 |
| Child 0–5 years | €357 |
Additionally, the Jobcenter pays [9]:
- Rent and utilities (within reasonable limits for the region)
- Heating (actual costs)
- Mandatory health insurance contributions
Asset Check (Vermögensprüfung)
Bürgergeld is only paid when own means are insufficient. Asset limits [10]:
| Asset | Limit (first year of receipt) | Limit (after first year) |
|---|---|---|
| Savings (Schonvermögen) | €40,000 for first household member + €15,000 for each additional | €15,000 per person |
| Own housing | Reasonable area not counted (up to 140 m² for family of 4) | Reasonable area not counted |
| Car | One per able-to-work household member (reasonable value) | One per able-to-work household member |
First year (Karenzzeit): Relaxed asset check — allows keeping more savings when transitioning to Bürgergeld [11].
How to Apply
- Submit application to Jobcenter at your place of residence — in person, online, or by mail
- Provide documents: passport, Meldebescheinigung (registration certificate), rental contract, bank statements for last 3 months, proof of all income
- Undergo needs assessment — Jobcenter checks income and assets of all household members
Decision is made within several weeks. If approved, benefit is credited from the date of application [12].
Transition from ALG I to Bürgergeld
If the ALG I period expires and no job is found, you can apply for Bürgergeld. The Jobcenter will check need and assets.
Difference between ALG I and Bürgergeld:
| Criterion | ALG I | Bürgergeld |
|---|---|---|
| Basis | Insurance contributions | Need |
| Amount | 60-67% of Leistungsentgelt (notional net) | Fixed rates (€357–563) + rent |
| Asset check | No | Yes (limit €15,000–40,000) |
| Payment period | Limited (6–24 months) | As long as need exists |
| Agency | Agentur für Arbeit | Jobcenter |
Sperrzeit — Payment Block
If you quit voluntarily (Eigenkündigung) without good reason or are dismissed for violations, you receive a Sperrzeit — ALG I block for 12 weeks [13].
Valid reasons for quitting without Sperrzeit [14]:
- Moving to spouse/partner (if otherwise impossible to maintain relationship)
- Health problems confirmed by doctor
- Serious violations by employer (non-payment of salary, mobbing, dangerous working conditions)
Important: Even with a valid reason, you must notify Agentur für Arbeit before quitting and get consultation to avoid Sperrzeit.
FAQ
Not legal or financial advice.
I was laid off during Probezeit (probation) — do I qualify for ALG I?
ALG I requires at least 12 months of Versicherungspflicht (mandatory insurance contributions) within the last 30 months. If 12 or more months were worked at a previous employer (in Germany or another EU country under EU Regulation 883/2004), then yes. If this was the first job in Germany and total employment is under 12 months — no ALG I eligibility. In that case, Bürgergeld (citizen's benefit) is the fallback if the Hilfebedürftigkeit (need) criteria are met. EU citizens: employment periods from other EU countries count toward the 12-month minimum. Non-EU citizens: only German employment counts, unless a bilateral Sozialversicherungsabkommen (social security agreement) exists.
My residence permit is tied to employment — what happens to it while on ALG I?
This depends on the permit type. Blue Card (§ 18g AufenthG): holders have 3 months to find new employment before the permit is at risk (6 months if employed for more than 2 years). Standard work permit (§ 18a/b AufenthG): the Ausländerbehörde (immigration authority) must be notified; they evaluate whether to shorten the permit validity. Niederlassungserlaubnis (permanent residence permit): not affected by unemployment. During ALG I receipt, legal residence status is maintained — ALG I is an earned insurance benefit (Versicherungsleistung), not social assistance. Bürgergeld is more complex: receiving it can affect future Niederlassungserlaubnis (permanent settlement permit) applications (§ 9 Abs. 2 AufenthG requires Lebensunterhalt, livelihood, to be secured). Register at the Agentur für Arbeit (Federal Employment Agency) immediately and job-search actively.
Can I use the ALG I period to start my own business (Gründungszuschuss)?
Yes. The Gründungszuschuss (start-up grant) is available to ALG I recipients with at least 150 days of remaining ALG I entitlement. It is an Ermessensleistung (discretionary benefit) — the Agentur für Arbeit (Federal Employment Agency) is not obligated to grant it. Requirements: a viable business plan, approval from a Fachkundige Stelle (expert body — IHK, HWK, bank, or Steuerberater), and proof of professional suitability. The grant pays the full ALG I amount plus €300/month for social security for 6 months, with a possible 9-month extension at €300/month only. The application must be submitted BEFORE officially registering the business (Gewerbeanmeldung or Freiberufler registration).
I'm on ALG I and found a short-term job — does it reset my benefit period?
Short employment (under 12 months) does not reset the ALG I entitlement period. If a job is taken and lost again, the remaining ALG I days continue from where they left off — within a 4-year Rahmenfrist (framework period). Example: 12 months ALG I entitlement, 4 months used, 6 months worked, lost job again — 8 months remaining. If the new employment lasts 12 or more months, it generates a NEW ALG I entitlement. Important: report every job to the Agentur für Arbeit (Federal Employment Agency) — even short-term ones. Nebenverdienst (side income) up to €165/month is allowed while on ALG I without reduction.
Does receiving Bürgergeld affect my Niederlassungserlaubnis application?
Yes, significantly. Niederlassungserlaubnis (permanent settlement permit) under § 9 AufenthG requires that Lebensunterhalt (livelihood) is secured without public benefits. Current or recent Bürgergeld (citizen's benefit) receipt is a negative factor. ALG I is different — it is a Versicherungsleistung (insurance benefit), not social welfare, and generally does not count against the applicant. The Ausländerbehörde (immigration authority) evaluates the overall picture: a brief period of Bürgergeld during a documented job transition may be assessed differently than long-term receipt. For Blue Card holders, the Niederlassungserlaubnis path under § 18c Abs. 2 AufenthG has a shorter timeline (21 months with B1 German) but still requires secured Lebensunterhalt. The local Ausländerbehörde can provide their specific interpretation.
Sources
- Bundesagentur für Arbeit — Arbeitslosengeld I: https://www.arbeitsagentur.de/finanzielle-hilfen/arbeitslosengeld-i-alg-i
- Bundesagentur für Arbeit — Voraussetzungen für Arbeitslosengeld: https://www.arbeitsagentur.de/arbeitslosengeld/voraussetzungen
- Bundesagentur für Arbeit — Höhe des Arbeitslosengeldes: https://www.arbeitsagentur.de/arbeitslosengeld/hoehe
- Bundesagentur für Arbeit — Bemessungsentgelt und Höchstbetrag 2025: https://www.arbeitsagentur.de/arbeitslosengeld/bemessungsentgelt
- § 147 SGB III — Dauer des Arbeitslosengeldes: https://www.gesetze-im-internet.de/sgb_3/__147.html
- § 38 SGB III — Arbeitslosmeldung: https://www.gesetze-im-internet.de/sgb_3/__38.html
- Bundesministerium für Arbeit und Soziales — Bürgergeld: https://www.bmas.de/DE/Soziales/Sozialhilfe/Buergergeld/buergergeld.html
- Bundesministerium für Arbeit und Soziales — Regelbedarf 2025: https://www.bmas.de/DE/Soziales/Sozialhilfe/Regelsaetze/regelsaetze.html
- § 22 SGB II — Bedarfe für Unterkunft und Heizung: https://www.gesetze-im-internet.de/sgb_2/__22.html
- § 12 SGB II — Vermögen: https://www.gesetze-im-internet.de/sgb_2/__12.html
- Bundesagentur für Arbeit — Karenzzeit: https://www.arbeitsagentur.de/arbeitslosengeld-2-buergergeld/buergergeld-karenzzeit
- Bundesagentur für Arbeit — Bürgergeld beantragen: https://www.arbeitsagentur.de/arbeitslosengeld-2-buergergeld/buergergeld-beantragen
- § 159 SGB III — Sperrzeit bei Arbeitsaufgabe: https://www.gesetze-im-internet.de/sgb_3/__159.html
- Bundesagentur für Arbeit — Wichtiger Grund bei Arbeitsaufgabe: https://www.arbeitsagentur.de/arbeitslosengeld/wichtiger-grund