Unemployment Benefits - what you are entitled to and how to get it
Losing a job, one may at least be financially covered by unemployment benefits. But who is actually eligible for it, how much is it, and where should one apply for it? We clarify the most important questions.
Who is eligible for unemployment benefits?
One qualifies if they have paid contributions into the unemployment insurance for a total of at least 12 months in the 30 months prior to unemployment. For employees, their employer deducts the contributions directly since they are mandatorily insured. On the other hand, self-employed individuals must insure and pay themselves to make a claim.
There are also special cases: The period of childcare for the first three years of a child's life counts as a waiting period and can justify an entitlement to unemployment benefits. The same applies to those who have performed voluntary military service, federal or youth voluntary service, or those who have received sick pay.
Additionally, there is an exception for predominantly temporary employees: They may only require a contribution period of 6 months in the last 30 months for an entitlement to unemployment benefits. The prerequisites include, among other things, that the employment contracts were limited to a maximum of 14 weeks and the salary did not exceed a certain value.
How much unemployment benefits will I receive?
Since it is individually calculated and depends on various factors, it is advisable to use the unemployment benefit calculator of the Federal Employment Agency. After entering a few data points, it provides an approximate value for the expected unemployment benefit.
For example, a single person with tax class I and an average monthly gross income of 2000 Euro receives approximately 884 Euro unemployment benefits per month. "In general, one receives about 60 or 67 percent of their previous net income," says Susanne Eikemeier from the Federal Employment Agency. Sixty percent is for childless individuals, 67 percent for individuals with children.
How long will I receive unemployment benefits?
Two factors are decisive: First, the length of time one has been socially insured. Second, one's age when becoming unemployed. As a rule of thumb, the number of contribution months divided by two yields the number of benefit months.
"Under 50-year-olds usually have a 12-month entitlement to unemployment benefits I, provided they have paid in for at least 24 months," says BA spokeswoman Eikemeier. For older unemployed individuals, the entitlement period can increase gradually up to 24 months.
What does this have to do with waiting periods?
It is a form of penalty that the Employment Agency for Work can impose when individuals have caused their unemployment, for example, by resigning or terminating an employment contract without a valid reason. During the waiting period, which can last up to 12 weeks, eligible individuals do not receive benefits.
For example, "if one resigns or terminates an employment contract without a valid reason," explains Miruna Xenocrat, labor law expert at the Arbeitnehmerhilfe. "A valid reason would be, for instance, moving in with a partner or a job that makes one sick, specifically at that employer." A self-resignation usually results in a 12-week waiting period.
What taxes are deducted from ALG?
The unemployment benefit (ALG) is already a net amount, so no taxes are deducted. However, it is important to note that ALG is considered a wage replacement benefit and therefore a tax declaration is mandatory.
The Federal Lohnsteuerhilfe states on their website that all wage replacement benefits must be reported in the tax declaration.
Which days do I have to report for ALG I?
"If you know that you will become unemployed, you must report to your employment agency at least three months before the unemployment begins," says Susanne Eikemeier. If it is discovered short-term, reporting must be done within three days of becoming aware.
Tip: Report job-seeking. This can be done by phone at 0800 4 55 55 00 or in writing - a simple email is sufficient. "Whoever reports late or ineffectively risks a suspension period of usually one week," says the BA spokesperson.
Step two: Job seekers can register up to three months before the start and must do so no later than the first day of unemployment. Since 2022, this is also possible online. The responsible employment agency can be found by the applicant on the Federal Employment Agency website.
For online registrations, an identification document is required, such as a personal ID with an online function. Those who register for unemployment online can also schedule a personal consultation appointment at the same time.
Thirdly: They fill out a application for unemployment benefit. This can also be done online or by phone. "I recommend filing the application as soon as possible, that is, as soon as you have reported unemployment," says Attorney Xenocrat. "The processing goes faster online."
How much can I earn in addition?
Whoever receives unemployment benefit is allowed to have only minimal own income. The deductible amount is 165 euros per month. "If one earns more, the unemployment benefit is correspondingly reduced," says Susanne Eikemeier from the Federal Employment Agency. "Marketing costs can increase the deductible amount."
An example: They earn 250 euros a month and have expenses of 25 euros for transportation. The deductible amount therefore increases by the 25 euros in transportation costs to a total of 190 euros. The actual earnings still lie 60 euros above the allowed amount, so the unemployment benefit is exactly reduced by this amount.
Attention also regarding working hours: During the receipt of ALG, the weekly working time may not exceed less than 15 hours per calendar week. "If it is 15 hours or more, you are no longer considered unemployed and no longer receive unemployment benefit," says the BA spokesperson.
What do I have to do during the receipt of ALG?
During the personal consultation with a counselor or counselor from the Federal Employment Agency, an individual plan is drawn up - an integration agreement. "Everything that is agreed upon there is binding for the unemployed person," says Eikemeier. "They must attend appointments at the employment agency and are obliged to do everything in their power to end the unemployment." This can happen, for example, through the taking of further training or the writing of applications.
Lawyer Xenocrates advises to be well-prepared for the interview. Anyone who states they can only work part-time may have their ALG (German unemployment benefit) reduced. It is better to show readiness for full-time employment. Parents of small children should have a caregiving option. "Those who cannot provide care may not be contactable," says the labor lawyer.
She also recommends noting down every interview with the employment agency. "Even if you call for information: Ask for the name of the caseworker or caseworker and note down the time and content of the conversation. This way, you have everything black on white."
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