Unemployment benefit

The amount of your Unemployment benefit (ALG) is calculated on an individual basis and depends on the following factors:

• Your taxable income over the past 12 months
• Your income tax bracket
• whether a child needs to be taken into account 

Here’s how your Unemployment benefit is generally calculated:

First, an assessment period is determined based on the pay periods subject to social insurance contributions that occurred in the year prior to becoming unemployed (assessment framework). If there are at least 150 days during this period for which you were entitled to wages, an average daily wage is calculated based on the total wages earned during this period. 

From this amount, a flat-rate income tax , the solidarity surcharge (if applicable), and a flat-rate social security contribution of 20% are deducted. The result is your flat-rate net income per day. 60% of thisamount determines the daily Unemployment benefit (ALG) to which you are entitled. If you have one or more children, the amount increases to 67%. 

If your entitlement to unemployment benefits (ALG) expires and you remain unemployed, you may be eligible for basic income support (formerly ALG II). To receive this, you must submit an application for basic income support toyour local Jobcenter. You can do this in writing or by submitting an online application.

For reference, you can use the Federal Employment Agency’s Unemployment Benefit calculator to calculate the amount of your Unemployment Benefits online yourself.

Unemployment benefits(ALG) are an insurance benefit. If you cause the insured event (in this case, unemployment) yourself or fail to actively seek new employment, a waiting periodmay apply. In that case, you will not receive unemployment benefits for a certain period of time.

A waiting period applies, for example, under the following circumstances:

• You resign from your job
• You are terminated by your employer for cause
• You do not accept a job that was referred to you by the Employment Agency
• You cannot prove that you are actively seeking a new job
• You do not register as a job seeker in a timely manner

The waiting period can last one to 12 weeks. It does not apply if you have a valid reason and can provide evidence to support your actions.

How long you receive Unemployment benefit depends on two factors:

• How many months you were subject to mandatory insurance contributions in the 5 years prior to becoming unemployed
• Your age.

Unemployment benefit for people up to age 50

If you are younger than 50, you can receive Unemployment benefit for a maximum of 12 months. The following rules apply regarding the maximum duration of Unemployment benefit eligibility:

• 6 months of entitlement for 12 months of insurance coverage
• 8 months of entitlement with 16 months of insurance coverage
• 10 months of entitlement with 20 months of insurance coverage
• 12 months of entitlement with 24 months of insurance coverage

Unemployment benefit for People Aged 50 and Older

If you are over 50 years old, the maximum benefit period increases in several age brackets up to 24 months. The following rules apply:

• Age 50 and older: 15 months of entitlement with 30 months of insurance coverage
• Aged 55 and older: 18 months of entitlement with 36 months of insurance coverage
• Age 58 and older: 24 months of entitlement with 48 months of insurance coverage

Unemployment benefits (ALG) with a Shortened Qualifying Period

If you have held many temporary jobs, you can apply for Unemployment benefit even with a shorter qualifying period of just 6 months. 

In this case, the following rules apply regarding the maximum benefit period:

• 3 months of entitlement with 6 months of insured employment
• 4 months of entitlement with 8 months of employment subject to social insurance contributions
• 5 months of benefits for 10 months of insured employment

The Employment Agency regularly reviews whether you are still eligible for Unemployment benefit. As a recipient of Unemployment benefit, you are required to notify the Employment Agency of any changes that could affect your benefits. For example, if you start a new job or if you are unable to work due to illness. This obligation also applies during the waiting period. You can reportsuch changes online, in writing, or in person.

Yes. As a general rule, you remain covered under mandatory health, long-term care, and pension insurance as long as you are receiving Unemployment benefits (ALG). The Federal Employment Agency covers these costs. If the Employment Agency asks you to attend an appointment or to meet with a potential employer based on a job placement recommendation from the Employment Agency, you are also covered by accident insurance. During periods when you are not receiving benefits, you are not insured and must arrange your own health and long-term care insurance. An exception is the waiting period. During this time, you remain covered under mandatory insurance through the Federal Employment Agency.

If you work 15 hours per week or more, you are no longer considered unemployed under the law and are therefore not entitled to Unemployment benefits (ALG).

You must report any secondary employment to the Employment Agency. The agency will determine whether and to what extent your additional income will be deducted from your Unemployment benefit. You are entitled to a monthly exemption of 165 euros. Under certain circumstances, a higher, individualized exemption may be granted.

When you register as unemployed, you will need your ID card with your current registered address or a residence permit.

The Employment Agency may request additional documents when you submit your application, such as:

• Employment verification (to be completed by your employer)
• Your termination letter or your fixed-term employment contract
• Proof of previous unemployment benefit payments (if applicable)
• Proof of contributions if you are required to have unemployment insurance
• Certificate of sick pay
• Certificate of supplementary income

You can register as unemployed in person or online with the Employment Agency.