Basic welfare for the elderly and people with reduced earnings capacity

An important term in the context of social benefits is the “household.” This term describes a group of people who live together and earn their livelihood jointly.

Who is considered part of the household?

If you apply for basic welfare for the elderly or people with reduced earnings capacity, the income and assets of your spouse will also be taken into account. This also applies to registered civil partnerships or if you live with a partner and manage your finances jointly.

Important: Unlike with cost-of-living assistance, the income of other people living in your household (such as parents-in-law, grandchildren, or siblings) is not taken into account. However, they must, for example, pay their share of the rent themselves.

Do my relatives have to pay for this if I receive basic income support?

If you receive basic income support, you may be entitled to reimbursement if the total annual gross income of your children or parents exceeds €100,000. The incomes of multiple children are not combined for this purpose. If there is evidence that your relatives have such a high income, the social assistance agency may request information from the individuals in question.  

Will the costs for my rental apartment be covered?

Yes. In addition to the standard monthly allowance, the social services office also pays the rent, utilities, and heating costs, provided the costs and living space are reasonable. You must pay for electricity yourself using the money from your standard monthly allowance. 

The rent must be appropriate for the size of the apartment and the number of people living there. Your apartment must not be too large or too expensive. If the social services office considers the cost of your rental apartment to be too high and therefore not reasonable, you do not have to move to a more affordable apartment immediately. You have 6 months to do so. Only after that will your payments be reduced.  

When is a home considered “reasonable”?

Whether your rent is reasonable depends primarily on the rent index for your place of residence. If you live in a condominium or a single-family home, the costs of maintaining the property are taken into account. If you live in a retirement or nursing home, the rent (including utilities) for an average single-person household in your place of residence is considered.

This overview shows guidelines for apartment sizes that are generally considered reasonable:

• 45–50 m² for 1 person
• 60 m² or 2 rooms for 2 people
• 75 m² or 3 rooms for 3 people
• 85–90 m² or 4 rooms for 4 people
• a single-family home (owner-occupied) up to 130 m²
• a condominium (owner-occupied) up to 120 m² 

Additional space is provided for wheelchair users and those requiring care.

The social services office reviews and determines whether a residence is still considered adequate. Factors such as the actual cost of the residence are taken into account. The rules for this may vary from region to region. 

Is financial assistance also available for furnishing my apartment?

Yes, this is possible in certain cases, for example: 

• if you’re moving out of your parents’ home to set up your own household,
• if you were homeless and are moving back into an apartment,
• if, after a long period of incarceration (at least 6 months), you no longer have your own household and are moving into an apartment again.

If the move has been approved by the responsible social services office, you can apply for the so-called “initial home furnishings allowance.” You will then receive a financial grant or vouchers for the most essential household items, such as furniture, appliances, pots, and other items. There is no uniform Germany-wide regulation regarding the amount of the grant for initial household furnishings; it can vary from region to region. 

What if I have rent arrears?

If there is a risk that you might lose your apartment due to rent arrears, the social services office may, under certain conditions, also cover your rent arrears. The debt is typically covered in the form of a loan. 

In addition, electricity debts can also be covered if your electricity service is at risk of being shut off or has already been shut off. In such cases, the electricity debt is always covered as a loan. To repay the loan, a certain portion of your monthly benefits is withheld and not paid out.

What if I live in a nursing home?

Eligibility for basic income support does not depend on a specific living situation. If you live in a nursing home, the costs are covered up to the amount that would be incurred for an average single-person household in your place of residence. You may also receive a so-called cash allowance to cover personal needs and wishes. You are free to use this amount as you see fit. You also receive money for clothing (a clothing allowance). The procedures and responsibilities of the administering agencies may vary by region.

If your income and assets are not sufficient to cover your living expenses, you may be eligible for basic income support. Before you receive this basic income support, you must first use your available funds to cover your living expenses. To determine this, the social services office will review your income and the value of your assets. The same applies to your partner if you live in a domestic partnership. It does not matter whether you are married or not.

The amount of basic income support you receive depends on the level of your income and your assessed needs (see “Amount and Composition of Basic Income Support”).

What types of income are counted toward your total income?

Income includes all earnings you receive while you are receiving basic income support. This includes all regular and irregular income, for example:

• Pensions and retirement benefits of any kind from Germany and abroad (including those from private or employer-sponsored pension plans),
• Earned income (including from part-time work),
• Alimony payments,
• parental allowance exceeding €300,
• Rental and lease income,
• Child benefit,
• sick pay,
• Interest (over €26 per calendar year).

Is there also income that isn’t taken into account when calculating basic income support?

Yes, there are types of income that are not taken into account. These include, for example, the basic pension under the Federal Pension Act or your own long-term care allowance.

How is basic income support calculated if I have income?

If you have income, deductions such as taxes, social security contributions, or certain insurance premiums are subtracted when calculating basic income support. After these deductions, the result is what is known as “countable income.” The social services office assumes that you can use this money to cover your living expenses. The countable income is therefore subtracted from your total needs . If you live with a spouse or partner, their income and assets are also taken into account.

If you have any further questions about income and how it is calculated before applying for basic income support, you can contact your social services office.

What counts as assets?

If you have assets, they must first be depleted before you can receive basic income support. Assets include everything you own before receiving the benefit.

Examples of assets include:

• Cash,
• securities,
• savings,
• real estate,
• cars.

The following are not considered assets:

• Small amounts of money (exempt assets),
• family heirlooms or inherited items, if their sentimental value far exceeds their market value,
• reasonable household possessions,
• a reasonable home or apartment that you use yourself,
• subsidized retirement savings from a Riester pension. You are therefore not required to liquidate your accumulated Riester pension—however, when the Riester pension is paid out, part of it is counted as income.

Do I have to use up all my assets before I’m eligible for basic income support?

No, there is what’s known as “exempt assets,” which serve as an allowance. For single recipients of basic income support, this amounts to €10,000, and for couples, a total of €20,000.

Are statutory health insurance premiums covered?

Yes, if you cannot pay your health and long-term care insurance premiums out of your own income, the social services office may consider reasonable costs as a need. For example:

• premiums for statutory health insurance and social long-term care insurance
• Additional premiums

What if you have private health insurance?

With private health or long-term care insurance, coverage depends on the amount of the premiums. Premiums for private health insurance under the basic plan or a comparable plan are considered reasonable. Private long-term care insurance is considered reasonable if the scope of benefits roughly corresponds to those of statutory long-term care insurance.

What will happen to my existing retirement savings?

To help ensure you don’t need assistance when you reach retirement age, the social services office may, under certain circumstances, cover pension contributions you’ve previously paid on a voluntary basis. 

Contributions that are considered part of your needs include, for example:

• the statutory pension insurance,
• agricultural pension funds,
• professional pension plans, if they are comparable to the statutory pension insurance,
• retirement savings in the form of a lifetime annuity starting after age 60 (“Rürup pension”),
• tax-subsidized retirement savings (“Riester pension”).

The social welfare office decides on a case-by-case basis for each application whether to cover contributions to retirement savings. There is therefore no guarantee.

The social welfare office may also cover premiums for existing funeral insurance if they are reasonable. This means that the amount of the funeral benefit must cover the (locally reasonable) costs of a funeral and the policy must have been taken out before basic income support was approved. In addition, the monthly premiums must be reasonable.

What are my obligations if I receive basic income support?

When you apply for basic income support, you are required to provide accurate and complete information. This is known as the “duty to cooperate.” If any changes occur after you have submitted your application, you are required to notify your local social services office as soon as possible. Typical situations that trigger this “duty to notify” include moving, changes in the members of your household, changes in your financial situation, and personal changes (marriage, separation, pregnancy, birth, etc.).

Submitting the required documents is also part of your obligation to cooperate. The social services office will generally set a deadline by which you must submit the documents. If you cannot meet this deadline, you can request an extension from the social services office in a timely manner. It’s best to explain why you cannot meet the deadline. If there is no official deadline, you should submit the documents as soon as possible. If you have any questions, the responsible social services office can assist you.

The obligation to cooperate applies to all individuals whose income and assets are also taken into account. For this reason, you should inform these individuals in advance that you are applying for basic income support. This will allow you to provide accurate and complete information.

Note: You are required to provide information in accordance with Article 14 of the General Data Protection Regulation (GDPR).

As a recipient of basic income support, you must:

• provide all information relevant to the benefit (such as income and assets),
• agree that the social services office may also obtain information about you from other parties (such as relatives or banks),
• immediately notify the social services office of any changes in your personal circumstances if they are relevant to the calculation of the benefit (for example, utility bills and changes in income),
• provide the social services office with appropriate documentation (such as supporting documents) when required, or consent to its submission.

What happens if I fail to fulfill these obligations?

If you violate your obligation to cooperate, the social services office may stop paying your benefits and demand repayment of any benefits you received improperly. You can file an appeal against the social services office’s decision within one month. The case will then be reviewed again.

If you provide false information—for example, regarding your income or assets—this may also lead to administrative or criminal proceedings. The social services office regularly reviews the income and assets of individuals receiving social benefits. 

How much money will I receive as basic income support?

The amount and scope of basic income support are comparable to the benefits provided under the Cost-of-living assistance program.

The amount of your basic income support depends on your personal needs, as well as your income and assets. If you are married or in a domestic partnership, your partner’s income is also taken into account (see “Basic Income Support and Income”).

The following rule of thumb applies to the amount of basic income support:

Needs minus countable income = benefit amount.

What does “needs” consist of?

Basic income support is intended to cover the following areas:

• Costs of living
• Costs for housing and heating
• Health and long-term care insurance premiums
• Pension contributions
• Additional needs for certain groups of people (for example, if you have a Severely Disabled Pass with the “G” designation)
• Assistance in special cases (for example, initial furnishings for an apartment)

When calculating your needs, a distinction is made between the so-called standard needs, additional needs, and one-time benefits. The amount of assistance required may vary for each applicant.

Standard Allowance

Standard needs are a monthly, flat-rate amount of money for everyday expenses such as food, clothing, or household appliances. They correspond to the current social assistance amount. The standard rates were increased as of January 1, 2024, as follows:

Standard Needs Level 1 for single and single-parent beneficiaries: 563 euros

Standard benefit level 2 for any adult living with a partner, spouse, or in a marriage-like relationship, or for residents of a special type of housing: 506 euros

Standard benefit level 3 for an adult residing in an inpatient facility: 451 euros

Standard needs level 4 for adolescents from the beginning of their 15th year until the end of their 18th year: 471 euros

Standard needs level 5 for children from the beginning of their 7th year until they turn 14: 390 euros

Standard needs level 6 for children up to the age of 6: 357 euros

In addition:

• Expenses for rent and heating,
• Health and long-term care insurance premiums.

Additional Needs and One-Time Benefits

• You can apply for additional needs in special life situations. For example, if you must follow a different diet for health reasons and incur higher costs as a result, you may receive additional benefits. Additional needs also arise during pregnancy or if you hold a Severely Disabled Pass with the “G” designation.
• One-Time Needs and other needs include, for example, furniture and household appliances for initially furnishing an apartment or baby supplies.

If you are eligible for basic income support, you are also entitled to benefits for your children’s education and participation in community life. This includes, for example, costs for school field trips, academic support, and school lunches for students.

Applying

You can apply for basic welfare for the elderly and people with reduced earnings capacity on your own behalf or, if you have power of attorney, on behalf of another person. If you wish to apply for this benefit on your own behalf, you can fill out the online application for basic welfare for the elderly and people with reduced earnings capacity here. If you’d like to apply for basic income support on behalf of someone else, the social services office in your city or municipality can assist you. The online application for third parties is currently under development and will be available here soon.

Required Documents

To apply, you must prove that you cannot cover your basic living expenses—either in full or in part—with your own income and assets. To qualify for basic income support due to reduced earning capacity, you must provide proof from the German Pension Insurance of a permanent, full reduction in earning capacity, or you must be employed at a workshop for people with disabilities in the introductory phase, vocational training program, or work program.