Basic Income Support (Grundsicherungsgeld)

Housing costs (abbreviated as KdU) are capped at a maximum of 1.5 times the local market rent. If your KdU exceeds this amount, you must pay the difference yourself or move. If your municipality also sets a maximum price per square meter for potential rent charges, an additional cap may apply. If a landlord does not comply with the rent control law, you must report this.

Job centers are being made more aware of health-related barriers to job placement. Before benefits are reduced, individuals—especially those with mental health conditions—should be spoken with in person beforehand.

Job centers and benefit recipients continue to draw up a cooperation plan that outlines the steps necessary to secure employment or begin vocational training. If the benefit recipient fails to follow these steps, the job center requires them to cooperate. If the beneficiary continues to fail to cooperate, benefits may be reduced by 30 percent of the standard benefit amount. Each repeated unexcused absence from the Job center may also result in a 30 percent reduction. Certificates of incapacity for work may be verified.

Starting when a child reaches 14 months of age—rather than at age 3, as was previously the case—parents must take up gainful employment or participate in a reintegration program, provided that childcare is secured. This may include, for example, a spot in daycare, a preschool, or a similar setting.

Asset exemptions are adjusted based on age and increase as you get older. If your assets exceed these exemptions, you must use them to cover your living expenses. This is assessed at the start of benefit receipt.

How much money will I receive as a recipient of basic income support?

Your basic income support is based on the standard rate. This covers your daily expenses (e.g., for food, clothing, household goods, and household energy, excluding hot water). The amount depends on your age and the people in your so-called “benefit community” (see “Basic Income Support and Family”). The standard rate is paid to you as a lump-sum amount and is adjusted annually.

Your total monthly needs consist of:

• Standard allowance: A monthly amount for everyday expenses.
  • For single individuals and single parents:
    • 563 euros (Standard Needs Level 1)
  • Partners in a benefit community:
    • Ages 18 and older: 506 euros each (Standard Allowance Level 2)
  • Adult relatives and young adults:
    • Adults under 25 living in their parents’ household: 451 euros (Standard Needs Level 3)
  • Youth:
    • From the beginning of the 15th year until the end of the 18th year: 471 euros (Standard Needs Level 4)
  • Children:
    • From the beginning of their 7th year until they turn 14: 390 euros (Standard Needs Level 5)
    • Up to the age of 6: 357 euros (Standard Needs Level 6)
• Expenses for rent and heating (see “Basic Security Benefit and Housing”)
• Health and long-term care insurance premiums (see “Basic Security Allowance and Income”)
• School supplies for children (“Benefits for Education and Participation—BuT”).

In addition, eligible recipients in standard needs levels 3, 4, 5, and 6 are granted a flat-rate “immediate child supplement” of 25 euros per month.

Your own income, such as from a part-time job, may reduce the amount of your basic income support.  

However, there are exemptions for income and assets that are not taken into account (see “Basic Security Benefit and Income” and “Basic Security Benefit and Assets”). 

If you live in a so-called “benefit community” (see “Basic Security Benefits and Family”), the income and assets of all members are taken into account in the calculation.

What are additional needs? 

In addition to the standard benefit, you may be eligible for additional needs in certain life situations. 
For example, the following groups of people are eligible for additional needs under the Citizen's benefit program:

• Single parents
• People with disabilities
• People who require a special, high-cost diet for medical reasons
• Pregnant women

Even if you generate your own hot water using a tankless water heater, additional needs may be recognized. 

The amount of any additional needs is determined based on the recipient’s existing standard benefit. 

In addition, there are one-time benefits, for example, for furnishing a home for the first time or upon the birth of a child.

Training Allowance

If you receive basic income support and would like to pursue continuing education, you may be eligible for additional assistance to prepare for the job market or earn a degree. Your Jobcenter will provide you with personalized information about the available funding options. The Employment Agency is responsible for administering this benefit.

Continuing Education Allowance: You will receive an additional 150 euros per month for participating in a subsidized vocational continuing education program that leads to a vocational qualification (e.g., retraining, partial qualifications). The continuing education allowance can be paid for up to 3 years.

Continuing Education Bonus: In addition, a continuing education bonus is available upon successful completion:

• 1,000 euros for passing an interim exam or the first part of a final exam.
• 1,500 euros for passing the final exam.

Application:You do not need to apply separately for either the continuing education allowance or the continuing education bonus. The Employment Agency will pay you the funds monthly in arrears. To receive payment, simply submit proof (e.g., an interim or final certificate) to your local Employment Agency. Please contact your local Employment Agency for more information.

An important term is the “needs community.” This refers to a group of people who live together and share household expenses, such as a family. The conditions are described in detail in Book II of the Social Code (SGB II).

When are you considered part of a “needs community”? 

Benefit communities consist of at least one person who receives basic income support. Other people who may be part of the community include:

• The person receiving basic income support.
• Spouse or registered partner:
  • Requirement: They live together.
• Partners in a marriage-like relationship:
  • Requirements:
    • You live together.
    • You support each other financially (e.g., if the relationship has lasted longer than 1 year or you have a child together).
• Unmarried, childless children who are able to work:
  • They live in their parents’ household until they turn 25.
  • They cannot support themselves through their own income or assets (e.g., through their own work, Child benefit, or child support payments).

Temporary household for benefits purposes:If children of separated parents regularly live with the other parent as well, the child may be entitled to basic income support on a daily basis.

How much basic income support will I receive as part of a benefits community? 

When calculating basic income support, the income and assets of all members of your household are taken into account. The law assumes that people living together support each other financially.

The amount of basic income support depends on:

• the standard benefit amount, 
• any additional needs,
• the cost of housing and heating,
• any potential need for benefits from the education and participation package,
• one’s own income (e.g., from a part-time job), and 
• personal assets.

In addition, benefit recipients in standard need levels 3, 4, 5, and 6 are granted a flat-rate “immediate child supplement” of 25 euros per month.

In a final, simplified overview, the total needs of all members of the benefit community are compared with the total income and assets of all members of the benefit community. In doing so, exemptions from income and assets—which are not counted toward the needs assessment—must first be taken into account. The resulting difference between needs and income and assets is then paid out as a social benefit. 

What is the difference between a “needs community” and a “household community”? 

A needs community consists of people who live together and manage their finances jointly. A household community exists when relatives or in-laws live in the same household but do not belong to the needs community. 

Examples of this include: 

• parents,
• grandparents,
• aunts and uncles,
• nieces and nephews,
• and siblings over the age of 25, 
• as well as biological or foster children who have reached the age of 25. 

If it is suspected that members of a household are providing financial support to one another, this may affect the calculation of the basic security benefit, provided that such support is to be expected based on their income and assets.

What other benefits are available for children? 

Children of school age can receive educational benefits until they turn 25. These include:

• Costs for daycare and school field trips, as well as class trips.
• Coverage of the cost of a communal lunch at daycare or school.
• A lump-sum allowance for school supplies twice a year.
• Costs for student transportation when needed.
• Coverage of costs for supplementary, extracurricular learning support (if necessary).

In addition, children and adolescents up to age 18 receive a monthly lump sum of 15 euros to participate in social and cultural activities (e.g., sports clubs, music lessons).

Are your housing costs covered? 

Yes, but only if those costs are reasonable. 

Basic income support also covers the costs of housing and heating. This applies to both rental apartments and owner-occupied homes. For rental apartments, the base rent, utilities, and heating costs are taken into account. 

For owner-occupied homes, interest on the mortgage and homeowners’ association fees may be covered; however, principal payments are generally not covered. Your Jobcenter can provide you with further information regarding these costs. 

Heating costs are also covered. Expenses for household electricity (excluding heating) are already included as part of the standard benefit.

However, housing costs are covered only if they are reasonable based on an overall assessment of the apartment’s size and price. Your local municipality determines the locally applicable reasonableness limits. Expenses may also be considered unreasonable if they exceed a maximum price per square meter set by the municipality;

However, a “grace period” applies for the first 12 months of benefit receipt, during which, as an exception, the actual costs of housing are covered. However, this temporary coverage of actual expenses is limited to 1.5 times the locally applicable reasonableness limit.

Is financial assistance available for furnishing your apartment for the first time? 

Yes, under certain circumstances. 

You can receive financial assistance from the Jobcenter for furnishing your apartment (e.g., furniture, household items). You must apply for this separately. 

The requirements are:

• It must be genuine initial furnishings (e.g., following homelessness or if your home furnishings were completely destroyed). Your Jobcenter can provide you with further information.
• You are eligible for basic income support.
• Or: Although you do not need ongoing basic income support to cover your living expenses (including rent and heating), you are unable to pay for the initial furnishings out of your own funds. Your income over the past 6 months may be reviewed.

If the assistance is approved, you will receive a grant or vouchers for essential household items (e.g., furniture, household appliances, pots and pans).

Note: Housing benefit under the Housing Allowance Act

If you are eligible for Housing benefit, this takes precedence over your entitlement to basic income support. Housing benefit is a priority social benefit. It is not possible to receive both basic income support and Housing benefit at the same time.

You can find more detailed information on housing benefit here.

Even if you are working, you may still need assistance. If your income is not enough to cover your living expenses, you can supplement it with basic income support. The amount of basic income support you receive depends on your income level and your assessed needs.

How is my basic income support calculated if I have an income?

If you have income from employment, this is taken into account when calculating basic income support. However, there are certain amounts that are not counted toward your income. That’s why people who work and receive basic income support have more money available to them than people who don’t work.

Your Jobcenter always calculates the income to be included on a case-by-case basis.

Income from gainful employment is taken into account in the calculation. However, there are certain amounts that are not counted toward your income. 

The following amounts are taken into account when calculating your basic income support and remain available to you:

• Taxes and mandatory contributions to statutory social insurance.
• Premiums for legally required and reasonable private insurance.
• Tax-deductible contributions to retirement savings plans under the Income Tax Act.
• Work-related expenses (e.g., travel costs, maintaining two households).
• Expenses for statutory maintenance obligations.

Additional deductions for employment:
In addition to a basic exemption of 100 euros, you may deduct the following amounts from your gross income:

• For the portion of monthly earned income that exceeds 100 euros and does not exceed 520 euros: 20 percent.
• For the portion of monthly earned income that exceeds 520 euros and does not exceed 1,000 euros: 30 percent.
• For the portion of gross income between 1,000 and 1,200 euros (or 1,500 euros if you have a minor child): an additional 10 percent allowance.

Additional exemptions:

• Young people may keep income from part-time jobs as students or during vocational training up to the “minijob” limit (currently 603 euros). Income from summer jobs is not taken into account until the age of 25.
• Increased exemption limits also apply to participants in federal volunteer services and the FSJ (Voluntary Social Year).
• Expense reimbursements (e.g., for volunteer work or caregiving) are assessed annually and are not counted as income as long as they do not exceed the annual exemption of 3,000 euros.

What other types of income reduce my basic income support?

Various benefits, such as Child benefit, advance child support, or parental allowance, are counted as priority social benefits. One-time income such as a Christmas bonus, a tax refund, or gifts is also included in the calculation. Child support payments are also deducted from the basic security benefit.

Is there any income that does not reduce my basic security benefit? 

Yes. These include, for example:

• The basic pension as compensation for war victims or victims of violent crimes (under the Federal Pension Act). This is not a standard old-age pension.
• Blindness allowance.
• Care allowance for full-time care.

Benefits for the care and upbringing of children with disabilities: There is a special rule here. For the third child, 75% is not counted toward the benefit, and for the fourth child and beyond, 100% is not counted.

Wealth is the totality (stock) of a person’s assets that can be measured in monetary terms. These include, for example:

• cash,
• balances in investment accounts, 
• savings (including those in an online account or a bank safe deposit box), 
• home savings account balances,  
• savings bonds,  
• Securities (e.g., stocks and mutual fund shares), 
• Tangible assets (such as vehicles or jewelry), 
• Whole life insurance policies,  
• Home and real estate ownership, 
• condominiums,  
• as well as other real property rights.

Please list the assets of all members of the household. Please also list any assets held abroad. The Jobcenter will determine whether these assets are included in the calculation.

The exempt asset limit per person, depending on age, is:

• up to age 30: €5,000
• 31 years and older: €10,000
• 41 years and older: 12,500 €
• 51 years and older: €20,000

Assets are assessed immediately upon the start of benefits.

There is no longer a grace period for assets.

For owner-occupied real estate, there is no requirement to liquidate assets only during the first year (grace period for housing costs). 

After the one-year grace period for housing costs, the reasonableness of housing costs will also be assessed for owner-occupied properties.

In individual cases, your Jobcenter may request documentation to support the information you have provided.

Assets of children: 

Children living in your benefit community may each retain 5,000 euros of their own assets. 

If a child has more than 5,000 euros in assets, they must use this excess amount solely for their own living expenses. It does not have to be used for their parents’ living expenses.

When a child reaches the age of majority, they are only responsible for the portion of their assets that exceeds 5,000 euros. This means they must use only this money for their own living expenses. This is intended to protect young people from starting their adult lives in debt.

Existing Retirement Savings: 

Your retirement savings remain yours and are not counted against your basic income support.This applies to insurance policies intended for retirement savings, as well as to other state-subsidized forms of retirement savings.

House or Condominium: 

In general, you can receive basic income support even if you own a house or condominium that you live in yourself.It is important that the size of your property is appropriate in relation to the number of residents.Your job center will inform you whether your property is protected and which costs can be reimbursed.

Vehicles such as cars or motorcycles: 

If you receive basic income support, you may own a car or motorcycle. This applies to every member of your household who is able to work. The value of the vehicle must be reasonable. If the potential sale proceeds do not exceed 15,000 euros (minus any outstanding loans), the vehicle is generally considered reasonable. The assessment always takes into account the circumstances of the individual case (e.g., size of the household, number of vehicles in the household, date of purchase).

Am I covered by health insurance if I receive basic income support?

Yes. Everyone living in Germany must have health insurance. This also applies to recipients of basic income support. You will usually remain insured through your existing statutory health insurance provider. The Jobcenter pays a monthly flat rate to the statutory health insurance providers to cover your insurance. You can also apply to the Jobcenter for private health insurance, although the amount of the copayment is capped.

Am I exempt from copayments for medications?

No, you are not exempt from copayments. For many medications and medical aids, insured individuals must cover part of the costs themselves. To prevent expenses from becoming too high, the total annual copayments are capped at 2 percent of your gross income (“cost limit”). If your copayments exceed this limit, you can apply to your health insurance provider to be exempted from further copayments. This also applies to hospital stays. Children and adolescents up to age 18 are generally not required to make any copayments.

In addition to the monthly standard benefit, you can apply for one-time benefits or a loan in special situations.
Examples:

• Initial purchases for housing or clothing
• Initial supplies for pregnancy and childbirth
• Replacement of urgently needed household appliances
• Repairs or an impending power shutoff

An urgent need exists if the expense cannot be postponed and there is no other way to cover it. The responsible agency may also provide benefits in kind instead of cash.
Applications can be submitted informally or online. Supporting documentation (e.g., cost estimate, police report for theft, bank statement) is required. Repayment of a loan begins the month after disbursement. 

Under certain conditions, apprentices or students may receive supplemental benefits if they are not eligible for BAföG or an apprenticeship allowance, or are only partially eligible.
Possible benefits:

• Grants for additional needs (e.g. , pregnancy, single parenthood, expensive dietary requirements)
• Hardship loans in cases of extreme financial need
• Hardship grant for school-based training without BAföG eligibility
• A loan for the first month of training:It helps you bridge the gap until you receive your first training stipend.

Basic income support is granted for a limited period (usually 12 months). If you continue to need basic income support, you must submit an application for renewal (WBA) in a timely manner.

Important:

• Apply online or using a form
• Current documentation of income, rent, and assets is required.
• Submit your application 4 to 6 weeks before the end of the approval period, if possible, so that you receive the basic income support in a timely manner.