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Unemployment Benefits

ALG I (Arbeitslosengeld I, unemployment benefit) is paid by the Agentur für Arbeit (Federal Employment Agency) if you have at least 12 months of insurance periods in the last 30 months. It pays 60% of notional net pay, or 67% with a child, for 6–24 months, with no check of your savings [1]. If you have no right to ALG I or it has run out, the Jobcenter pays Grundsicherungsgeld (basic income support; called Bürgergeld until 1 July 2026). In 2026 that is €563 for a single adult plus housing, but only after a check of your income and assets [2].

Claiming benefits can feel awkward if, in your home country, you were only ever a taxpayer. ALG I is an insurance payout: the contributions for it came out of every payslip you received. You can file a Widerspruch (formal objection) against any written decision by the Agentur or the Jobcenter within one month [3].

How much does ALG I pay, and who qualifies?​

Besides 12 months of insurance in the last 30, you need to register as unemployed and be available for work of at least 15 hours a week [1]. Other periods count too, besides salaried work: for example, months on Krankengeld (sick pay from your health insurer), or raising a child under 3 after a job with contributions. If most of your contracts were fixed-term for no more than 14 weeks ahead and your earnings over the last 12 months stayed at or below 1.5 times the Bezugsgröße (the social-insurance reference amount), 6 months of insurance are enough, but ALG I then lasts 3 months (§ 142 Abs. 2 SGB III) [1]. The Agentur applies the 60% or 67% to your Leistungsentgelt (notional net pay), which it works out with a formula [4]:

  1. gross pay over the last 12 months, capped at the Beitragsbemessungsgrenze (contribution ceiling): €8,450 a month in 2026 [5];
  2. minus a flat 20% for social contributions (Sozialversicherungspauschale), regardless of what you paid;
  3. minus Lohnsteuer (wage tax) and Soli (solidarity surcharge) for your tax class.

Converting salary into a company pension (bAV) also lowers the base: only pay subject to contributions goes into it [6]. The Agentur uses the tax class you had on 1 January of the year your ALG I entitlement arose. It accepts a later change only if the new classes match the ratio of the spouses' salaries. So in a III/V couple, the spouse in class V gets lower ALG I.

Example (2026, tax class I, no children). This is Geldchen's estimate using the formula: the Agentur calculates the benefit per day, so the amount in its decision can differ by about 1–2%.

Gross €4,000 a monthGross €9,000 a month
Take-home pay≈ €2,610≈ €5,180
60% of take-home pay≈ €1,570≈ €3,110
ALG I by the formula≈ €1,600≈ €2,850
ALG I as % of take-home pay≈ 61%≈ 55%

At €9,000 gross, ALG I is about €260 a month less than "60% of take-home pay". The ceiling cuts off €550, and the formula's 20% is more than your real contributions, because health insurance has its own, lower ceiling. The gross-to-net calculator shows an estimate for your salary and class.

ALG I lasts half the number of months with contributions in the last 5 years, up to 12 months. From age 50 the maximum is 15 months, from 55 it is 18, and from 58 it is 24 [7].

When does the first ALG I payment arrive?​

The Agentur pays ALG I monthly in arrears: the money for October arrives at the end of October or on the first working day of November [8]. Three steps come before the first payment, each with its own deadline:

  1. Register as arbeitsuchend (job-seeking) 3 months before your job ends, or within 3 days if you find out later [9]. Registering late means a Sperrzeit (benefit block) of 1 week [10].
  2. Register as arbeitslos (unemployed) no later than your first day without work. The Agentur pays no ALG I for days before you register [11].
  3. File the application. While the Agentur reviews it, no money comes. Once it decides, you get the past weeks in one lump sum.

A payout for untaken leave (Urlaubsabgeltung) pushes the start of ALG I back by those days [12]. The total length of payments stays the same.

When is ALG I blocked for 12 weeks (Sperrzeit)?​

The Agentur imposes a 12-week Sperrzeit if you quit (Eigenkündigung) or were dismissed for misconduct [10]. The same applies if you signed an Aufhebungsvertrag (termination agreement). On top of that, the Agentur shortens ALG I by at least a quarter: 12 months become 9 [13]. For turning down suitable work, the Sperrzeit is 3 weeks the first time, 6 the second time and 12 the third [10].

A wichtiger Grund (good cause) lifts the Sperrzeit. Examples: moving to join your spouse, an illness backed by a doctor's certificate, unpaid wages or bullying at work (Mobbing).

A less well-known case of good cause is an Aufhebungsvertrag that replaces an unavoidable dismissal for operational reasons (betriebsbedingt). The conditions: the notice period is respected, and the Abfindung (severance pay) is no more than half a month's gross salary per year of service [14].

What is Grundsicherungsgeld, and how much is it?​

Grundsicherungsgeld is a means-tested benefit from the Jobcenter; on 1 July 2026 it replaced Bürgergeld [15]. The Jobcenter counts the income and savings of the whole Bedarfsgemeinschaft (benefit household): everyone who lives with you as one family [2].

Rates for 2026: €563 for a single adult, €506 for each adult in a couple, and €357–471 per child depending on age [16]. On top of that, the Jobcenter pays rent up to the local limit (KdU, Kosten der Unterkunft, housing costs), heating and health insurance contributions [17].

For the first 12 months, the Jobcenter pays your actual rent, up to 1.5 times the local limit [18]. After that it asks you to cut costs and usually pays only the limit six months later. The KdU rent limit calculator shows what you pay on top, month by month.

An application takes effect from the 1st of the month you file it [19]. One filed on 28 October covers all of October; one filed on 1 November covers only November.

What savings can you keep on Grundsicherungsgeld?​

Since 1 July 2026, the Jobcenter checks assets from the first day of payments [2]. Up to and including age 30, €5,000 per person is protected; €10,000 from age 31, €12,500 from 41 and €20,000 from 51. The limits of household members add up [20], and the reform abolished the Karenzzeit (grace year) for assets [15].

The Jobcenter treats deposits, a Depot (brokerage account) and crypto above the limit as money to live on: as long as you have it, the Jobcenter pays nothing. For benefit periods that started before 1 July 2026, the old limits apply until those periods end [21].

How much should an emergency fund hold for a job loss?​

In Germany, an emergency fund closes two gaps: the months without payments, and the difference between ALG I and your consumption floor. The formula: consumption floor × months without payments + (consumption floor − ALG I) × the months on ALG I you plan for your job search.

The "3–6 months of expenses" rule of thumb is common in American personal-finance writing. There, benefits are usually shorter and lower, and health insurance often goes with the job. In Germany, with gross pay up to the contribution ceiling (€8,450 a month, 2026), ALG I replaces more than half of net pay, and the fund covers the difference.

Example (2026): consumption floor €3,000 a month, gross €6,000, class I, no children, ALG I about €2,200, a 6-month job search.

How you lose the jobCalculationFundIn months of expenses
Your employer dismisses you, ALG I from day one6 × €800€4,8001.6
You quit without good cause3 × €3,000 + 3 × €800€11,4003.8
Under 12 months of work in Germany, no ALG I6 × €3,000€18,0006

In the third case, add health insurance. Without ALG I, you pay GKV (statutory health insurance) contributions yourself, unless your spouse's family insurance covers you [22]. Before, they came out of your gross pay, so a consumption floor based on net pay leaves them out.

Geldchen's editorial guideline is at least 3 months of expenses in a separate reserve with quick access (savings checklist). In the example, the formula gives less when your employer dismisses you, and 3.8–6 months if you quit or have no ALG I. In the Boat phase (the first 24 months after moving), ALG I is either missing or shorter, and the calculation is closer to the third row.

Quick access (liquidity) matters because of the Sperrzeit and the weeks before the Agentur decides. ALG I ignores savings, so there is no need to spend the fund down before you apply. For the Jobcenter, a separate account changes nothing: after ALG I, it counts all your accounts and your Depot.

What does losing your job mean for your residence permit?​

A residence permit for work does not end on the day you are dismissed. If you find no new job, the Ausländerbehörde (immigration office) can shorten its validity [23]. When the office checks whether your living costs are covered, ALG I does not count as öffentliche Mittel (public funds); Grundsicherungsgeld does [24]. If your permit was issued for this job, you must tell the Ausländerbehörde about the dismissal within 2 weeks of learning about it [25].

StatusWhat losing your job changes
EU Blue Card (§ 18g AufenthG)Under the EU directive, up to 3 consecutive months of unemployment are no ground for withdrawal; up to 6 months if you have held the card for 2 years or longer [26]
Niederlassungserlaubnis (permanent residence permit)Once you have it, it does not depend on a job. To get it, you need to cover your Lebensunterhalt (living costs) without Grundsicherungsgeld [27]
CitizenshipGrundsicherungsgeld stands in the way if you worked full-time for less than 20 of the last 24 months. ALG I on its own does not; the authority assesses whether you will support yourself going forward [28]

Who can help with a dismissal or a dispute with the Agentur?​

SituationWho to contact
You are offered an Aufhebungsvertrag, or you are thinking of quittingA Fachanwalt für Arbeitsrecht (employment lawyer) or a trade union lawyer. You can ask the Agentur about a Sperrzeit before you sign
A decision by the Agentur or the Jobcenter looks wrongErwerbslosenberatung (advice service for the unemployed), VdK or SoVD (social welfare associations that advise their members), a Fachanwalt für Sozialrecht (social-law lawyer)
A question about your residence permitMigrationsberatung für Erwachsene (MBE, migration advice for adults, free) or a Fachanwalt für Migrationsrecht (migration lawyer)
Tax return for a year with ALG I: mandatory if ALG I for the year exceeds €410 (2026) [29]A Lohnsteuerhilfeverein (tax assistance association) or a Steuerberater (tax adviser)

FAQ​

This is not legal or financial advice.

I was dismissed during my Probezeit (probation period) — will I get ALG I?​

Yes, if you have 12 months with contributions in the last 30 months; earlier jobs in Germany count. The Agentur can also count insurance periods in the EU, the EEA and Switzerland if your last job was in Germany. For that you need form PD U1 from that country. Work in Russia, Ukraine, Kazakhstan and other countries outside the EU, the EEA and Switzerland usually does not count towards ALG I.

If your employer dismisses you during probation through no fault of your own, there is no Sperrzeit. If the reason is your conduct (unexcused absences, breaches of contract), the Agentur can impose a Sperrzeit, as with a dismissal for misconduct at any other time. The notice period during probation is short, so you have to register as arbeitsuchend within 3 days.

I found a temporary job — what happens to the rest of my ALG I?​

You keep it. If the new job ends in less than 12 months, you get the remaining days, as long as your ALG I entitlement is less than 4 years old [30]. If you work 12 months or more, you gain a new entitlement. The rest of the old one is added to it if the old entitlement arose less than 5 years ago, but not beyond the maximum for your age [7].

Side work of under 15 hours a week does not end ALG I: the Agentur does not deduct the first €165 a month (2026) you earn from it [31]. The law requires you to report any work to the Agentur in advance.

My partner works — am I entitled to Grundsicherungsgeld?​

No, if your partner's income after deductions covers the standard rates for both of you, rent up to the limit and heating. The Jobcenter calculates Grundsicherungsgeld for the whole Bedarfsgemeinschaft and counts the salary and savings of a partner you live with [2]. ALG I does not depend on your partner's income: it is your personal insurance.

Sources​

  1. Bundesagentur für Arbeit — Arbeitslosengeld I, https://www.arbeitsagentur.de/finanzielle-hilfen/arbeitslosengeld-i-alg-i (2026)
  2. Bundesagentur für Arbeit — Grundsicherungsgeld: Voraussetzungen, Einkommen und Vermögen, https://www.arbeitsagentur.de/grundsicherung/finanziell-absichern/voraussetzungen-einkommen-vermoegen (2026)
  3. Bundesministerium der Justiz — § 84 SGG, Widerspruchsfrist, https://www.gesetze-im-internet.de/sgg/__84.html (2026)
  4. Bundesministerium der Justiz — § 153 SGB III, Leistungsentgelt, https://www.gesetze-im-internet.de/sgb_3/__153.html (2026)
  5. Bundesregierung — Beitragsbemessungsgrenzen 2026, https://www.bundesregierung.de/breg-de/aktuelles/beitragsgemessungsgrenzen-2386514 (2026)
  6. Bundesministerium der Justiz — § 151 SGB III, Bemessungsentgelt, https://www.gesetze-im-internet.de/sgb_3/__151.html (2026)
  7. Bundesministerium der Justiz — § 147 SGB III, Dauer des Anspruchs, https://www.gesetze-im-internet.de/sgb_3/__147.html (2026)
  8. Bundesministerium der Justiz — § 337 SGB III, Auszahlung, https://www.gesetze-im-internet.de/sgb_3/__337.html (2026)
  9. Bundesministerium der Justiz — § 38 SGB III, Arbeitsuchendmeldung, https://www.gesetze-im-internet.de/sgb_3/__38.html (2026)
  10. Bundesministerium der Justiz — § 159 SGB III, Sperrzeit, https://www.gesetze-im-internet.de/sgb_3/__159.html (2026)
  11. Bundesministerium der Justiz — § 141 SGB III, Arbeitslosmeldung, https://www.gesetze-im-internet.de/sgb_3/__141.html (2026)
  12. Bundesministerium der Justiz — § 157 SGB III, Urlaubsabgeltung, https://www.gesetze-im-internet.de/sgb_3/__157.html (2026)
  13. Bundesministerium der Justiz — § 148 SGB III, Minderung der Anspruchsdauer, https://www.gesetze-im-internet.de/sgb_3/__148.html (2026)
  14. Bundesagentur für Arbeit — Fachliche Weisungen § 159 SGB III, gültig ab 01.07.2026, https://www.arbeitsagentur.de/datei/fw-sgb-iii-159_ba034410.pdf (2026)
  15. Bundesregierung — Bürgergeld wird zur neuen Grundsicherung, https://www.bundesregierung.de/breg-de/aktuelles/neue-grundsicherung-2399562 (2026)
  16. Bundesregierung — Nullrunde beim Bürgergeld 2026, https://www.bundesregierung.de/breg-de/aktuelles/nullrunde-buergergeld-2383676 (2026)
  17. Bundesministerium der Justiz — § 22 SGB II, Unterkunft und Heizung, https://www.gesetze-im-internet.de/sgb_2/__22.html (2026)
  18. Bundesagentur für Arbeit — Grundsicherungsgeld: Wohnen und Miete, https://www.arbeitsagentur.de/grundsicherung/wohnen (2026)
  19. Bundesministerium der Justiz — § 37 SGB II, Antragserfordernis, https://www.gesetze-im-internet.de/sgb_2/__37.html (2026)
  20. Bundesministerium der Justiz — § 12 SGB II, Vermögen, https://www.gesetze-im-internet.de/sgb_2/__12.html (2026)
  21. Bundesagentur für Arbeit — Fachliche Weisungen § 12 SGB II, Stand 01.07.2026, https://www.arbeitsagentur.de/datei/fw-zu-par-12-sgb2-beruecksichtigung-von-vermoegen_ba058027.pdf (2026)
  22. Bundesministerium der Justiz — § 188 SGB V, freiwillige Mitgliedschaft (Abs. 4), https://www.gesetze-im-internet.de/sgb_5/__188.html (2026)
  23. Bundesministerium der Justiz — § 7 AufenthG, nachträgliche Befristung (Abs. 2), https://www.gesetze-im-internet.de/aufenthg_2004/__7.html (2026)
  24. Bundesministerium der Justiz — § 2 AufenthG, gesicherter Lebensunterhalt (Abs. 3), https://www.gesetze-im-internet.de/aufenthg_2004/__2.html (2026)
  25. Bundesministerium der Justiz — § 82 AufenthG, Mitteilungspflicht (Abs. 6), https://www.gesetze-im-internet.de/aufenthg_2004/__82.html (2026)
  26. Europäische Union — Richtlinie (EU) 2021/1883, Blaue Karte EU, Art. 8, https://eur-lex.europa.eu/eli/dir/2021/1883/oj/deu (2021)
  27. Bundesministerium der Justiz — § 9 AufenthG, Niederlassungserlaubnis, https://www.gesetze-im-internet.de/aufenthg_2004/__9.html (2026)
  28. Bundesministerium der Justiz — § 10 StAG, Einbürgerung, https://www.gesetze-im-internet.de/stag/__10.html (2026)
  29. Bundesministerium der Justiz — § 46 EStG, Pflichtveranlagung, https://www.gesetze-im-internet.de/estg/__46.html (2026)
  30. Bundesministerium der Justiz — § 161 SGB III, Erlöschen des Anspruchs, https://www.gesetze-im-internet.de/sgb_3/__161.html (2026)
  31. Bundesministerium der Justiz — § 155 SGB III, Nebeneinkommen, https://www.gesetze-im-internet.de/sgb_3/__155.html (2026)