Benefit to promote integration into the labour market (Einstiegsgeld)

When you apply for Einstiegsgeld, your Jobcenter will check whether you are eligible and how much you are eligible to receive.

The following factors are usually included in the calculation of Einstiegsgeld:

• Previous length of unemployment
• Size of group requiring support, such as family
• Basic requirements of the applicant

Given that these factors can vary significantly, the amount of the benefit can too. From some groups of people, your Jobcenter can also carry out a fixed assessment.

Your local Jobcenter will review your application for Einstiegsgeld. You must submit an application before you begin your self-employment or job. You can receive the benefit for a maximum of 24 months. The benefit amount is determined on a case-by-case basis. 

Important: Submit your application before you begin self-employment or a job that is subject to social insurance contributions.

If you receive unemployment benefit II (ALG II) and would like to start your own business as your main source of work, your Jobcenter will require your completed application for Einstiegsgeld.
Ideally, the following documents should also be submitted:

• CV together with evidence of formal qualifications, if applicable.
• Detailed description of the business you intend to start to explain the idea behind it.
• Capital requirements and financing plan.
• Expected revenue and profit forecast for the next three years.
• Proof of formal qualifications in the area in which the business operates.
• Statement from a third party or a relevant body regarding the future success of your business. Relevant bodies include chambers of industry and commerce, professional or trade associations, banks, start-up initiatives.

Important: You can submit an initial application without providing any further documents. The responsible authority will then request the necessary documents at a later date. However, this can result in your application taking longer to process.

Your Jobcenter will often require additional documents after you have submitted your application, above all evidence that you are self-employed. This can be a trade registration, a notification to the tax office or confirmation of the switch from a secondary source of work to a primary source of work.

Further documentation may also have to be provided, for example:

• Accident insurance
• Business liability insurance
• Entry in the trade register

Would you like to start a job that is subject to social insurance contributions and are currently receiving unemployment benefit II (ALG II)? If you meet the requirements to receive this benefit, you will need to provide the following documentation:

• A fully completed application for Einstiegsgeld
• An employment contract for a job that is subject to social insurance contributions with remuneration of more than EUR 450 per month

Important: So that you can meet necessary deadlines, you can still submit your application even if you don’t yet have an employment contract. The responsible authority will then request the necessary documents at a later date. However, this can result in your application taking longer to process.

The application is free of charge.

If you have submitted your application online or in person at a Jobcenter, the Jobcenter will check whether you meet the requirements for the benefit. Sometimes an advisory meeting is arranged.

You will receive notice of whether your application has been approved or rejected by post. If your application is approved, the Jobcenter will transfer the benefit amount to your bank account at the beginning of each month.

Ideally you do need a business plan to receive the benefit to promote integration into the labour market for your self-employment. It helps if the Jobcenter can see whether your business idea is promising from a financial perspective. A business plan usually includes a financial plan, a revenue and profitability forecast, a description of the business and a CV that shows you have the necessary qualifications for the activity.

You don’t have to pay back the Einstiegsgeld if your business fails.

You can receive Einstiegsgeld for up to 24 months.

If you receive regular unemployment benefit and would like to start your own business, you cannot receive Einstiegsgeld. Please contact your local Federal Employment Agency to discuss other benefit options and find out about support such as the start-up grant.

Your self-employment is considered the main source of work if you do not spend more time on other work activities. Income from your main source of work should also be your primary income for your living costs.

If you are working in a job that is subject to social security contributions and you receive Einstiegsgeld, you will also receive it if you are absent from work for short periods, work short-time hours or are off sick.