Unemployment in Germany: ALG & Bürgergeld

Unemployment Benefit I (ALG I)

ALG I is an insurance benefit from Germany's unemployment insurance scheme. You're entitled to it if you were in compulsorily insured employment for at least 12 of the last 30 months.

How much will you get?

The amount of ALG I is based on your last net salary:

• With children: 67% of your standardized net salary
• Without children: 60% of your standardized net salary

This standardized net figure is calculated from your gross salary and takes into account your tax class, child allowances, and social security contributions. It can differ from your actual net pay.

How long will you receive ALG I?

The payment period depends on your contribution period and your age:

• 12 months of contributions → 6 months of ALG I
• 24 months of contributions → 12 months of ALG I
• Age 50+ with 30 months → 15 months of ALG I
• Age 55+ with 36 months → 18 months of ALG I
• Age 58+ with 48 months → 24 months of ALG I

Bürgergeld (Citizen's Income / ALG II)

If your ALG I isn't enough or runs out, Bürgergeld (formerly Hartz IV) steps in. It's a means-tested basic income support, paid by the Jobcenter.

Standard Rates 2026

• Single people: €563/month
• Partners in a joint household: €506 each
• Children aged 14-17: €471
• Children aged 6-13: €390
• Children aged 0-5: €357

Housing Costs

On top of the standard rate, the Jobcenter covers "reasonable" costs for rent and heating. What counts as "reasonable" depends on where you live — higher rents are allowed in expensive cities.

Asset Assessment

A grace period applies during the first year: your assets aren't counted unless they're "substantial" (roughly €40,000 plus €15,000 per household member). After that, a protected allowance of €15,000 per person applies.

Wohngeld (Housing Benefit) as a Top-Up

Wohngeld is a rent subsidy for households with low income. Important: if you receive Bürgergeld, you don't get Wohngeld too, since your rent is already covered.

When does Wohngeld make sense?

Wohngeld is worth considering if your income (e.g., a low ALG I payment or a part-time job) is too high to qualify for Bürgergeld, but rent still puts a strain on your budget. Since 2023, "Wohngeld Plus" has included an additional heating and climate component.

Health Insurance While Unemployed

The good news: you don't lose your health insurance coverage. But the details depend on your situation.

While Receiving ALG I

The Federal Employment Agency (Agentur für Arbeit) pays your statutory health insurance (GKV) contributions, and you stay with your existing health fund. Privately insured people can switch to the GKV (if under 55) or keep paying their private (PKV) premium themselves.

While Receiving Bürgergeld

The Jobcenter pays your statutory health insurance contributions. If you're privately insured and can't switch to the GKV, you receive a subsidy toward your private (PKV) premium.

Without Any Benefits

If you receive neither ALG I nor Bürgergeld (for example, because you have your own assets), you have to insure yourself. The GKV offers voluntary coverage with a minimum contribution of around €235/month, including long-term care insurance.

Side Income and Part-Time Work

A part-time job can help bridge the financial gap. But there are limits, so you don't jeopardize your benefit entitlement.

Under ALG I

• Maximum 15 hours per week (otherwise you're no longer considered unemployed)
• €165 tax-free allowance — anything above that is deducted in full
• You must report the job to the employment agency

Under Bürgergeld

• The first €100 is exempt
• From €100-520: 80% is counted
• From €520-1,000: 70% is counted
• Above €1,000: 90% is counted

Example: You earn €450 from a part-time job. The first €100 is yours to keep, and of the remaining €350 you get to keep 20% (€70). In total, you keep €170 and receive correspondingly less Bürgergeld.

First Steps After Being Let Go

1. Register as job-seeking immediately: Online with the employment agency, by phone, or in person. Deadline: 3 days after you learn of your dismissal.
2. Check your protection against dismissal: Was the dismissal lawful? If in doubt, file a claim within 3 weeks.
3. Apply for ALG I: Best done online via arbeitsagentur.de. Have your documents ready: dismissal letter, employer's certificate (Arbeitsbescheinigung), and ID card.
4. Sort out your health insurance: Inform your health insurance fund about your unemployment.
5. Create a budget: What's coming in, what's going out? Use our household budget calculator.
6. Check Wohngeld and the child supplement: These benefits can top up ALG I.

Frequently Asked Questions About Unemployment