Basic welfare for the elderly and people with reduced earnings capacity

An important term in relation to social benefits is the family union, which describes the group of people who live and earn a living together.

Who belongs to the family union?

If you apply for basic welfare for the elderly or people with reduced earnings capacity, the income and assets of your spouse is taken into account. This also applies to civil partnerships or if you live and earn a living together with a partner.

Note: Unlike cost of living benefit, the income of other people who live in the same household is not taken into account (e.g. parents in law, grandparents, siblings). However, these people must pay their share of the rent.

If I receive basic welfare, do my relatives have to pay for it?

If you receive basic welfare, the costs may be claimed back if the gross annual income of your children or parents is greater than EUR 100,000.  If you have more than one child, their income is not aggregated. Social services may request information about the individuals concerned if there are indications that your relatives earn an income of this extent. 

Will the cost of my rent also be assumed?

Yes. Besides the fixed monthly basic requirements, social services also covers your rent, ancillary costs and heating costs, provided the costs and the total area of your home are appropriate. You have pay for your electricity yourself from your monthly basic requirements. 

The costs of rent must be appropriate to the size of your home and the number of people who live there. Your home may not be too large or too expensive. If social services considers the costs for your home to be excessive and therefore not appropriate, you must move into a home that costs less within the next six months. If you do not do so, your payments will be reduced.

When is a home considered “appropriate”?

The question of whether your rent is appropriate or not depends on the rent index in your town or city. If you live in an owner-occupied apartment or an owner-occupied house, costs are regarded as the costs of maintaining the property. If you live in a home for the elderly or a care home, rent plus bills of an average single-person household in your town or city is used as a benchmark.

Below is a list of reference values that are usually considered appropriate when it comes to the size of your home:

• 45-50 m2 for 1 person 
• 60 m2 or 1 bedroom for 2 people 
• 75 m2 or 2 bedrooms for 3 people 
• 85-90 m2 or 3 bedrooms for 4 people 

• house (owner-occupied): up to 130 m2 
• apartment (owner-occupied): up to 120 m2 

Additional space is allowed for in relation to wheelchair use or if care is required.

Social services reviews and decides whether an apartment is to be considered appropriate. Factors taken into consideration include how much your home actually costs, for example. Rules can vary from region to region. 

Can I also receive assistance in setting up my home?

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

• if you move out from your parents and set up your own household
• if you were homeless and move into a new home
• if you have spent an extended period of time in prison (at least 6 months), do not have a home and move into a new home

If your relocation or move into a new home is approved by social services, you can also apply for benefits to help equip and set up your new home (known as “Beihilfe zur erstmaligen Ausstattung für die Wohnung”). You receive a grant or vouchers for essential household purchases, including for furniture, household appliances, cooking utensils and other items. There are no nationwide regulations governing the amount of benefits you can receive for setting up your new home; amounts can vary from region to region. 

What happens if I have rent arrears?

If you are at risk of losing your home due to rent arrears, social services may be able to assume your debts under certain circumstances. Usually this takes the form of a loan.

Arrears on electricity payments can also be assumed if you are at risk of having your electricity meter blocked or if this has already happened. Electricity payment arrears are always assumed in the form of a loan. The loan is repaid by withholding a certain percentage of the monthly entitlement.

What about if I live in a care home?

Claims to basic welfare are not determined on the basis of a particular living situation. If you live in a care home, the costs usually incurred in your town or city for a single-person household are assumed. You can also receive a cash grant to finance your personal needs and wishes. There are no restrictions or limitations on what you do with this money. You can also receive money for clothing (clothing grant). Procedures and responsibilities can vary from region to region.

If your income and assets are not sufficient to cover the cost of living, you may be entitled to basic welfare. Before receiving basic welfare, you first have to use the money that is already available to you to finance the cost of living. This is why social services will review your income and assets. Your partner’s income and assets will also be reviewed if you live in a civil partnership. It doesn’t matter whether you are married or not.

The amount of money you receive as basic welfare depends on your income and your defined requirements (see “Amount and composition of basic welfare”).

What is considered income?

Income is regarded as all income you receive while also receiving basic welfare. It includes all regular and irregular income, such as:

• any form of pension from Germany or abroad (both private and company pensions)
• income from employment (including from marginal employment [geringfügige Beschäftigung])
• maintenance payments
• parent allowance in excess of EUR 300
• rental income
• child benefit
• sick pay
• interest (over EUR 26 per calendar year)

Is there any income that is not taken into consideration when calculating basic welfare?

Yes, some income is not included in the calculation. This includes basic pension payments according to the German Federal Pensions Act and your care allowance.

How is basic welfare calculated if I have an income?

If you have an income, certain allowances such as taxes, social security contributions or insurance premiums are deducted from the basic welfare amount. Once these deductions are made, you are left with your eligible income. Social services assumes that you can use this money to cover the cost of living. Eligible income is therefore deducted from your total requirements. If you live together with a spouse or partner, their income and assets are also taken into account.

If you have any further questions regarding your income and how it is calculated before you apply for basic welfare, you can contact social services.

What counts as assets?

If you possess assets, these assets must be utilised first before you receive basic welfare. Everything you possess prior to receiving basic welfare is considered an asset.

Examples of assets:

• cash
• securities
• savings
• house and land ownership
• vehicle

The following items are not counted as assets:

• smaller sums of cash (protected assets)
• family heirlooms if their sentimental value exceeds their monetary value
• appropriate household possessions
• appropriate house property or an appropriate apartment that you utilise yourself
• subsidised pension from a Riester pension scheme. In other words, you are not obliged to liquidate your Riester pension. However, once your pension is paid out it is taken into partial consideration as income.

Do I need to use up all of my assets before I am entitled to basic welfare?

No, there are also what are known as protected assets limit, which functions as an allowance. The allowance is EUR 10,000 for single recipients of basic welfare and EUR 20,000 for couples.

Are contributions to statutory health insurance also assumed?

Yes. If you are unable to pay your health and care insurance contributions from your own income, social services can take an appropriate level of costs into account as part of your requirements. For example:

• contributions to statutory health insurance and social care insurance
• additional contributions

What about if I am privately insured?

The assumption of private health and care insurance costs depends on the premiums. Premiums for private health insurance are considered appropriate if they are in the basic tariff or at a comparable rate. Private care insurance is considered to be appropriate if the scope of the insurance benefit is roughly equivalent to the benefit from statutory health insurance.

What happens with my existing pension?

Social services may be able to assume voluntary pension contributions to ensure that you don’t require support when you reach pension age. 

Amounts that are considered part of your requirements include the following:

• statutory pension contributions
• agricultural pensions
• occupational benefit schemes if they are comparable with statutory pensions
• pension schemes in the form of lifelong pensions after the age of 60 (Rürup pension)
• state-subsidised pensions (Riester pensions)

Social services decides on a case-by-case basis as to whether pension contributions are assumed; there are no guarantees in this regard.

Contributions to existing funeral expense insurance policies can also be assumed by social services if they are appropriate. In other words, the amount of funeral expenses must cover the costs (appropriate for the respective region) of a funeral and the policy must have already been concluded prior to the approval of the basic welfare. In addition, the monthly amounts must also be appropriate.

What are my obligations if I receive basic welfare?

If you apply for basic welfare, you are obliged to provide complete and accurate information. This is known as a “duty of cooperation”. If you need to make any changes once you have submitted your application, you are obliged to notify social services as soon as possible. Typical reasons for having to provide information include relocation, changes in the members of your household, changes to your financial situation and changes in your personal circumstances (marriage, separation, pregnancy, birth, etc.).

Submitting the required documents is also part of your duty of cooperation. Social services will usually set a deadline by which time you must submit the relevant documents. If you are unable to meet this deadline, you can request an extension from social services (in good time). In this case it also makes sense to explain why you are unable to meet the set deadline. If no deadline is set, you should submit the documents as quickly as possible. Social services can assist if you have any questions.

The duty of cooperation applies to all individuals whose income and assets are taken into account. You should therefore notify these individuals in advance that you are applying for basic welfare. This way, you can provide complete and accurate information.

Please note that the information supplied is subject to the duty to provide information defined by Article 14 of the General Data Protection Regulation (GDPR).

As a recipient of basic welfare, you must:

• supply all information that is relevant to the benefit (e.g. income and assets)
• agree that social services are able to collect information about you from other parties (such as relatives or banks)
• notify social services immediately of any changes to your personal circumstances if said changes are relevant to the calculation of the benefit (e.g. ancillary cost statements and changes in income)
• submit supporting evidence (e.g. certificates) to social services or agree to them being submitted.

What happens if I don’t meet these obligations?

If you breach your duty of cooperation, social services may stop paying your benefits or claim back benefits that you have unlawfully received. You can object to the official notice from social services within a period of one month, upon which your case will be reviewed.

If you provide inaccurate information, for example in relation to your income or assets, you may be committing an administrative or even a criminal offence. Social services regularly review the income and assets of those who receive social benefits. 

How much will I receive in basic welfare?

The amount of basic welfare you receive depends on your own specific requirements as well as your income and assets. If you are married or in a civil partnership, the income of your spouse or partner is also taken into account (see “Basic welfare and income”).

Basic welfare can be calculated using the following rule of thumb:

Requirements less eligible income = benefit amount

How are my requirements calculated?

When it comes to calculating your requirements, a distinction is made between your basic requirements, your additional requirements and one-off payments. Requirements vary from applicant to applicant.

Basic requirements

• Basic requirements represent a fixed monthly sum to cover day-to-day costs such as food, clothing or household appliances. This amount is the same as the rate of social benefit.

Additional components:

• requirements for rent and heating
• requirements for health and care insurance

Additional requirements and one-off payments

• Additional requirements can be applied for in particular situations. You can receive additional benefits if you have to change your diet for health reasons and incur increased costs as a result, for example. Additional requirements also apply if you are pregnant or if you have a disability pass with disability code G.
• One-off and other requirements include furniture and household appliances when moving into a new apartment and basic supplies for a new-born baby.

If you are entitled to basic welfare, you also have the opportunity to claim educational and social benefits for your children. These benefits are aimed at covering things such as school trips, promoting learning and providing school meals.

Making an application

You can apply for basic income support in old age and in the event of reduced earning capacity for yourself or for another person with power of attorney. If you would like to apply for the benefit for yourself, you can complete the online application for basic old-age and reduced earning capacity here. If you would like to apply for basic income support for another person, the social welfare office in your town or municipality can help you. The online application for third parties is still under construction and will soon be available here.

Documents required

To apply, you must prove that you are unable to pay for the necessary living expenses with your own income and assets, or are unable to do so in full. For basic income support in the event of reduced earning capacity, you must have proof from the German Pension Insurance Fund that you have a permanent full reduction in earning capacity or are employed in a workshop for disabled people in the entry procedure, vocational training area or work area.