Germany: Arbeitslosengeld I, entitlement, amount and duration

Who is entitled

You must be without employment and able to work at least 15 hours a week, have registered as unemployed with the employment agency and be looking for a job subject to social insurance (Federal Employment Agency). In addition there is the qualifying period: at least 12 months in unemployment insurance in the 30 months before the registration as unemployed (SGB III §§ 142 and 143).

Periods such as raising a child up to the age of three, receiving sickness benefit, voluntary insurance (for example while self-employed) or voluntary service can also count. Whoever mostly had short fixed-term jobs (up to 14 weeks) and stayed under a pay limit can, under conditions, manage with 6 months.

How much it is

The basis is the gross of the last 12 months, as far as it was subject to contributions and settled on leaving; severance does not count (§§ 150 and 151). Divided by 365 it gives the assessment pay per day, at most up to the contribution ceiling of €8,450 a month.

From this a flat 20% social insurance, the wage tax according to your tax class and the solidarity surcharge are deducted: the result is the benefit pay (Leistungsentgelt), a flat-rate net (§ 153). The unemployment benefit is 60% of it, with at least one child of yours or your spouse’s 67% (§ 149). A full month counts 30 days (§ 154).

Example: €3,000 gross a month, tax class I, no child. Assessment pay €98.63, benefit pay €69.26, unemployment benefit €41.56 a day and €1,246.80 a month. With a child it is €46.40 a day.

How long it is paid

The duration depends on the months you were subject to insurance in the last five years and on your age at the start of the entitlement (§ 147):

• After 12 months: 6 months of unemployment benefit; after 16 months: 8; after 20 months: 10; after 24 months: 12.
• From age 50 and 30 months of insured time: 15 months.
• From age 55 and 36 months: 18 months.
• From age 58 and 48 months: 24 months, the longest duration.

Registering and claiming

As soon as you know the employment is ending, you must register as seeking work: at the latest three months before, or, with less than three months’ notice, within three days of learning (§ 38). You register as unemployed online in the Federal Agency’s portal or in person; that is possible up to three months before unemployment begins (§ 141). The registration counts as the day of the claim; send the claim with the documents ideally about two weeks before the start.

The employer must, on request, certify all facts important for the entitlement (employment certificate, § 312). A dismissal needs written form (BGB § 623); whoever wants to challenge it has three weeks to sue (KSchG § 4).

Disqualification period and side income

Whoever ends the employment or, by their own conduct, gives cause for dismissal and so intentionally or through gross negligence causes unemployment, has a disqualification period (Sperrzeit) of 12 weeks, which in certain cases shortens to 6 or 3 weeks (§ 159). A refused job costs 3 weeks the first time, 6 the second, then 12; missing own efforts 2 weeks, a missed appointment or a late registration as seeking work one week. In addition the entitlement period falls, by at least a quarter for a 12-week disqualification period (§ 148).

Income from a side job is offset against the unemployment benefit after deducting taxes, social contributions and work expenses and an allowance of €165 a month (§ 155). The unemployment benefit itself is tax-free (EStG § 3 no. 2), but through the progression clause it raises the tax rate on your other income (§ 32b).