Unemployment Benefit (ALG)

The amount of ALG you receive is calculated on a personal basis and depends on the following factors:

• your income subject to mandatory social insurance payments over the past 12 months
• your tax category or rate schedule (Lohnsteuerklasse)
• the number of children you have (if applicable)

Your ALG is calculated as follows:

Your gross income over the past 12 months is divided by the number of days in a year (365). The result is your gross income per day. Any wage tax, the solidarity surcharge and a lump sum of 20% for social insurance are deducted from that amount. The result is your net income per day. Sixty per cent of that amount is the total ALG to which you are entitled per day. That amount increases to 67% if you have one child or more. If your ALG entitlement ends and you are still unemployed, you may be eligible for ALG II. You must file an application for ALG II with your local Jobcenter, either in writing or online.

For orientation, you can use the Federal Employment Agency’s unemployment benefit calculator to calculate how much ALG you will receive.

ALG is an insurance benefit. You may be subject to a period of exclusion from benefits if it is your fault that you became unemployed or if you do not actively look for a new job. When that happens, you will not receive ALG for a certain period of time.

You may face a period of exclusion from benefits for the following reasons:

• you have voluntarily quit your job;
• you have been terminated by your employer due to your conduct;
• you refuse a job that the Federal Employment Agency has arranged or suggested for you;
• you are unable to prove that you are actively looking for work;
• you do not register as unemployed in time.

The period of exclusion may range from 3 to 12 weeks. It will not apply if you can demonstrate that you had a good reason for acting the way you did.

Two factors determine how long you will receive ALG:

• the number of months you were employed in a position subject to mandatory social insurance payments in the 5 years before you became unemployed
• your age

ALG for people under 50

If you are under the age of 50, you can receive ALG for up to 12 months. The maximum length of time you can receive ALG is:

• 6 months for 12 months of employment in a position subject to mandatory social insurance payments
• 8 months for 16 months of employment in a position subject to mandatory social insurance payments
• 10 months for 20 months of employment in a position subject to mandatory social insurance payments
• 12 months for 24 months of employment in a position subject to mandatory social insurance payments

ALG for people over 50

If you are over the age of 50, you may be entitled to up to 24 months of unemployment benefit. The maximum length of time you can receive ALG is:

• age 50-54: 15 months for 30 months of employment in a position subject to mandatory social insurance payments
• age 55-57: 18 months for 36 months of employment in a position subject to mandatory social insurance payments
• age 58 and up: 24 months for 48 months of employment in a position subject to mandatory social insurance payments

ALG for abbreviated qualifying periods

You may apply for ALG after being employed for just 6 months if you have had multiple temporary employment contracts. In this case, the maximum length of time you can receive ALG is (special rule until 31 December 2022):

• 3 months for 6 months of employment in a position subject to mandatory social insurance payments
• 4 months for 8 months of employment in a position subject to mandatory social insurance payments
• 5 months for 10 months of employment in a position subject to mandatory social insurance payments

The Federal Employment Agency will check regularly to see whether you are still entitled to ALG. As a recipient of ALG, you are required to inform the Federal Employment Agency of any changes that could have an effect on your benefits, such as accepting a new job or becoming unable to work due to illness. This obligation continues to apply during periods of exclusion from benefits. You may notify the agency of any changes online, in writing or in person.

Yes. Usually, you will retain your statutory health, nursing care and pension insurance coverage for as long as you receive ALG. The costs will be covered by the Federal Employment Agency. The Federal Employment Agency will also provide accident insurance that will cover you during job interviews and under other circumstances.

You are not insured during periods in which you do not receive any benefits. When that happens, you have to pay your own health and nursing care insurance contributions. However, the Federal Employment Agency will continue to pay your insurance contributions during periods of exclusion from benefits.

You may work for up to 15 hours a week to earn additional income while you are unemployed. You will lose your entitlement to ALG if you work more than 15 hours a week.

You must inform the Federal Employment Agency of any side jobs. The agency will decide whether to deduct your additional income from your ALG payments. You are entitled to a personal exemption of EUR 165 a month. Under certain circumstances, you may be granted a higher personal exemption.

You can apply for ALG at your local Federal Employment Agency office when you register as unemployed. To do so, you need the following documents:

• your ID card with your current registered address or a residence permit
• proof of previous employment (to be filled out by your employer)

The Federal Employment Agency may request additional documents, such as:

• your termination notice or your temporary employment contract
• evidence of previous benefits due to unemployment (if applicable)
• evidence that you have made mandatory unemployment insurance payments
• proof that you have received sick pay
• evidence of additional income

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