The loss of a job can be a difficult experience, but the German unemployment insurance system provides financial support to help workers transition into new employment. One of the most important benefits is unemployment benefit I - ALG I -, a temporary unemployment benefit for individuals who have contributed to the system through their employment. On this page, the eligibility requirements, the calculation of payments, the duration of benefits, and the obligations associated with receiving unemployment benefits I - ALG I - are explained.
What is Arbeitslosengeld I?
Unemployment Benefit I is an insurance-based benefit that is managed and financed by the Federal Employment Agency, the so-called Bundesagentur für Arbeit. It differs from unemployment benefit II - ALG II -, often referred to as citizen's income, which is a means-tested social benefit. ALG I serves as temporary financial support for individuals who have been employed in jobs subject to social security contributions and are actively seeking new employment.
Who is Eligible for Arbeitslosengeld I?
To receive ALG I, you must meet the following criteria:
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Previous Employment: You must have been in a compulsory insurance employment relationship for at least 12 months within the last 24 months before becoming unemployed.
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Official unemployment registration: You must register as unemployed with the employment agency.
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Engagement in the job search: You must actively seek a new position and be willing to accept a suitable offer.
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Timely notification: If you know when your employment relationship ends, you must register as a job seeker at least three months before the expiration of your contract.
How Long Can You Receive Arbeitslosengeld I?
The duration of ALG I depends on your age and your employment history.
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If you have worked for 12 months, you are entitled to 6 months of benefits.
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If you have worked for 24 months, you are entitled to 12 months of benefits.
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If you are over 50 years old, you may be entitled to up to 24 months depending on the duration of your previous employment.
How Much Money Will You Receive?
The amount of unemployment benefit I you receive is based on your average net earnings in the 12 months prior to your unemployment. It will usually be 60% of your typical net salary and 67% if you have dependent children. So for example, if your monthly net salary is €3,000, you will receive €1,800 per month - or €2,010 with children.
Applying for Arbeitslosengeld I
The application process consists of several steps:
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Register as a job seeker: Register with the employment agency at least three months before your contract expires or go to your local employment agency on the first day of unemployment and register as unemployed.
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Submit the unemployment benefit I application: Submit the required documents, e.g.:
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Proof of previous employment and social security number.
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Identification documents
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Bank account details
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Attend meetings: You may be expected to participate in work consultations and mediation meetings.
Working While Receiving Arbeitslosengeld I
You can work up to 15 hours per week while receiving ALG I, but any income over €165 per month will be deducted from your benefits.
What Happens When Arbeitslosengeld I Ends?
If your ALG I run out and you are still unemployed, you can apply for unemployment benefit II - citizen's income -, a needs-based benefit to cover basic living costs.
Suspensions and Penalties
The benefits can be suspended for up to 12 weeks if you:
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To voluntarily give up your work without a valid reason.
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Reject reasonable job offers.
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Don’t attend the mandatory meetings of the employment agency.
Key Takeaways
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Unemployment benefit I is insurance-based, while citizen's income is needs-based.
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The duration of the benefit is between 6 and 24 months, depending on previous employment and age.
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The standard benefit is 60% of the previous net income and 67% for parents.
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You can work part-time, but you must declare any earnings over €165 per month.
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After the expiration of unemployment benefits I, the citizen's income can be an option for further financial support.
Final Thoughts
The German unemployment insurance system is designed to support people in transitioning to new employment and to provide them with the opportunity to secure their financial situation while searching for a new job. If you understand the process and your obligations, you can ensure a smooth application and benefit period.
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