Unemployment Benefits in Germany [2024] - Navigate Germany

The German Federal Government is always busy taking measures for unemployed people and offering several unemployment benefits. Details of these benefits and application procedure is mentioned in this guide.

Unemployment Benefits (EU and Non-EU Citizens)

Being an EU citizen, your citizenship gives you the right to work and live in Germany. If you are unemployed in your home country, shift your unemployment rights to Germany for which you must visit the official website of the EU. 

Being a non-EU citizen, your residence status will determine your right to apply for unemployment benefits. With a permanent residence or work permit, apply for the benefits from the social security system after meeting all the requirements.

Types of Unemployment Benefits in Germany

Unemployment benefits are categorized as.

1. Unemployment Benefit I [Arbeitslosengeld I]
2. Unemployment Benefit II [Arbeitslosengeld II]
3. Funded Educational Training

In which category you fall depends upon the period of unemployment, irrespective of your contribution to the unemployment insurance. If you don’t fulfill the requirements of unemployment benefit I and II, you will get the funded educational training.

Unemployment Benefit I [Arbeitslosengeld I or ALG I]

This benefit is for those who made regular contributions to the German Social Security System when you are employed at a good position. If you are self-employed, you can voluntarily contribute to the Social Security System.

Eligibility Criteria

Here are the requirements;

Status: Unemployed and looking for a job of at least 15 working hours per week. Registration: Registered as unemployed at the local employment office. Citizenship: German work visa or permit or citizenship of EEA, EU, or Switzerland. Contribution: Contributed to the unemployment insurance for at least 12 months (exceptions for illness or military service).

Amount of Arbeitslosengeld I or ALG I

The amount you receive depends on your salary in the assessment period of 12 months of employment before unemployment which is usually 60 % of your salary. If you have children, 67% of your salary will be your unemployment benefit. The maximum limit is different for East and West Germany which is 7050 Euros per month for West and 6750 Euros per month for East Germany.

Taxes on Unemployment Benefits

Unemployment benefit is just like your regular wage so below deductions will be deducted and the remaining amount will be sent to your bank account.

Unemployment Benefit Suspension [Sperrzeit]

Unemployment benefit I can be suspended (Sperrzeit/Blocking Period) for 3 months if;

Resign: You resign from the job. Fired: You are fired due to wrongdoing or misconduct. Severance Pays: You have received the severance pay by job termination. No Effort: You are not searching for a job. Rejecting Job Offers: You are rejecting good job offers. Registration: You are not registered as a job seeker at the local employment office.

Application Process

Registration As A Job Seeker

Go to the Federal Employment Agency website to register yourself as a job seeker as soon as you get to know about your unemployment. The agency will help you get a new job otherwise you will be receiving your unemployment benefits well in time. 

Unemployment Registration

Go to the local employment office or visit the website to register yourself as unemployed by providing your ID card, registration certificate, residence permit or visa, your digital identity, and the date since you have been unemployed.

Meeting with The Consultant

The employment agency will book an appointment with your personal consultant who will discuss the job opportunities with you and will assess your current scenario. He will ask you to explain if you are making an effort to find a job.

Fill The Application Form

Fill out the application form which you can get from the official website of the Federal Employment Agency or local office.

Application Approval

Wait for the application approval after which you will receive a confirmation and you will start getting your unemployment benefit at each month end.

Duration to Receive ALG I

The duration to receive your benefit depends on your age and the unemployment period.

Unemployment Benefit II [Arbeitslosengeld II / Hartz IV / ALG II]

If you are not eligible to receive unemployment benefit I, apply for arbeitslosengeld II (income supplement) which is best for low-income earners.

Eligibility Criteria

Here are the requirements;

Working Hours: Minimum of 3 hours per day. Income: low income to meet financial needs. Age: above 15 and below statutory retirement age. Citizenship: German work visa, permit, citizenship of EEA, EU, or Switzerland.

Amount of Arbeitlosengeld II or ALG II

You will receive a cash amount of Arbeitslosengeld II to fulfill your basic needs like health insurance, support for children and adults, and additional needs like heating and accommodation. The amount depends on your current income, assets, and family circumstances. Here is the table to get an estimation;

Application Process

Applying for Other Benefits

Apply for all other benefits like sickness benefit, housing benefit, maternity benefit, parental allowance, before you apply for unemployment benefit II.

Required Documents

Collect necessary documents that include your visa or residence permit, social security, and Passport or ID card.

Go to the Local Job Center

Visit the local jobcentre and get registered. 

Fill the Application (in German)

Fill the application form which is available only in German.

Application Submission

Submit the application with all required documents. Attach proof of your living costs, assets and income,  rent, and bank statements.

Duration of ALG II

Duration to receive this benefit is 12 months after which you need to reapply. In case of self-employment or volatile income, the duration is 6 months.

Funded Educational Training

You can always apply for funded educational training in Germany if registered as a job seeker and unemployed. Bildungsgutschein is not your legal right so its approval depends on your consultant at the job center.

Courses Covered

Different courses like German language courses, boot camps for career changes, and many other types of courses are offered.

Start Up Grants

Want to start your own business? Start-up grant from the Federal Employment Agency is offered irrespective of your unemployment benefits. The agency offers free coaching and training programs so you can learn new skills to grab opportunities or become a freelancer.

Final Thoughts

Unemployment benefits are for unemployed people in Germany which you can receive by following the mentioned procedure. Register yourself well in time so you can start receiving your benefits without any delays.