Chapter X: Unemployment Chapter X: Unemployment
Applicable statutory basisSocial Code (Sozialgesetzbuch), Book 3, from 24 March 1997.
Existing schemesUnemployment insurance (Arbeitslosenversicherung).
Unemployment assistance (Arbeitslosenhilfe).
Field of applicationAll employees (= manual and white-collar workers and trainees including young handicapped persons).
Total unemploymentunemployed, i.e. without work and looking for work
To have personally registered at the employment exchange as unemployed.
Unemployment Insurance (Arbeitslosenversicherung):
The unemployed person must have been compulsorily insured for at least 12 months during the last 3 years.
Unemployment Assistance (Arbeitslosenhilfe):
The unemployed person must have received unemployment insurance benefit (Arbeitslosengeld) during the last year, or must have spent at least 5 months in employment under insurance cover, or fulfil similar conditions (original unemployment assistance, originäre Arbeitslosenhilfe).
65 years.
Unemployment Insurance (Arbeitslosenversicherung):
Income from any part-time work (less than 15 hours per week) reduces entitlement to unemployment benefit. Other income or assets are not taken into account.
Unemployment Assistance (Arbeitslosenhilfe):
Means test.
None.
Benefits7 days a week.
Unemployment Insurance (Arbeitslosenversicherung):
Proportional to periods of compulsory insurance coverage and to age.
The duration of the period of insurance cover:
After compulsoryafter
Insurance coveragecompletion
of at least ...of ageMonths
Months...
12 6
16 8
2010
2412
2845.14
3245.16
3645.18
4047.20
4447.22
4852.24
5252.26
5657.28
6057.30
6057.32
Unemployment Assistance (Arbeitslosenhilfe):
Unlimited.
Assistance will be granted for maximum of 1 year and can thereafter be applied for anew. The conditions for entitlement are to be re-examined before each renewed grant.
Original unemployment allowance:
312 days.
Average weekly wage for the last 52 weeks.
DEM 8,400 (EUR 4,295) per month in the old Länder and DEM 7,000 (EUR 3,579) in the new Länder.
Unemployment Insurance (Arbeitslosenversicherung):
Beneficiaries with children:
67% of net earnings (fixed scale of net earnings established according to a global rate).
Beneficiaries without children:
60% of net earnings.
Unemployment Assistance (Arbeitslosenhilfe):
Beneficiaries with children:
57% of net earnings (lump sum net payments on a fixed scale).
Beneficiaries without children:
53% of net earnings.
See above.
Benefits for older unemployed and early retirementCompulsory retirement of unemployed at age 60 (see Table VI).
Special part-time work scheme (at least 18 h/ week) for workers aged 58 or over, if provided for in collective agreements, enterprise agreements or individual contracts of employment. If earnings for such part-time work for older workers is increased by at least 20%, and contributions are paid for legal pension insurance at least at the level of the compulsory contributions due on the difference between the wage for the part-time work and 90% of a full-time wage, the federal labour office will refund the employer the wage supplement for 20%, as well as the difference in the contributions for the legal invalidity and old-age insurance, corresponding to the compulsory contributions for the shown difference under the condition that his working place can be replaced.
Must have turned 60 years of age,
Unemployed for at least 1 year during the last 18 months,
at least 8 employed contribution years in the last 10 years,
and must have fulfilled the waiting period of 15 years.
See Table VI "Old-age".
In case of long service in a firm, the employer is obliged to reimburse benefits received by the unemployed person.
Partial unemploymentShort-time working (Kurzarbeit):
Temporary shortage of work due to economic reasons.
Unemployment due to weather conditions (Witterungsbedingter Arbeitsausfall):
In the building sector, temporary unemployment due to weather conditions (1 November to 31 March).
Short-time working allowance (Kurzarbeitergeld):
Unavoidable shortage of work affecting at least one third of staff and resulting in a loss of income from work of more than 10% of monthly gross income from work.
Continuation of a non-terminated employment under compulsory insurance coverage.
Bad weather allowance (Winterausfallgeld):
Shortage of work due to bad weather conditions for workers employed in the building sector at a work place affected by weather conditions.
Claim to a collective (organisation-wide or individually contracted) bad weather allowance is exhausted.
Continuation of a non-terminated employment under compulsory insurance coverage.
Short-time working allowance (Kurzarbeitergeld):
Short-time working allowance is determined on the basis of the difference between the short-term wage in the case of work shortage and the gross wage for full employment and the net wage thus resulting (net payment difference) (percent rates as for unemployment assistance according to the official scale).
Financed from the first hour of work shortage by the unemployment insurance.
Bad weather allowance (Winterausfallgeld):
As for short-time working allowance.
Financed from the 51st hour of work shortage by a levy of the employer in the business sector, when a collective agreement exists, from the 121st hour or work shortage by the unemployment insurance.
Pensions:
Accumulation dependent on individual circumstances.
Sickness benefit (Krankengeld):
No accumulation.
Taxation and social contributionsBenefits are not liable to taxation (subject to progression).
The minimum income levels (Existenzminimum) are not subject to taxation under any circumstances. The tax-free minimum income levels for 1999 are DEM 13,067 (EUR 6,681) for single adults and DEM 26,135 (EUR 13,363) for married couples.
No contributions.