Entitlement to guaranteed minimum resources.

Under what circumstances am I entitled to benefits?

The purpose of guaranteed minimum resources is to enable persons entitled to benefits to live with dignity and to participate in society.

Any person

• normally residing in Germany; and
• who cannot support themselves

• by their own means (income and assets);
• nor by their own efforts (joining the workforce);
• nor with the help of a third party,

is – with a few exceptions – entitled to income support. This comes in the form of either

• the Citizen’s Allowance (basic insurance for jobseekers pursuant to the Second Social Code), or 
• income support (benefits of the basic insurance for old age and in case of partial disability according to the Twelfth Social Code).

There are different benefits depending on the personal situation, age and life situation. Whether people in need of help are eligible for benefits and which of the two books of the Social Code apply depends on whether they are able to work or not.

Unemployed people fit for work but in need of assistance may apply for the Citizen’s Allowance for themselves and for any family members they share a domestic unit with who are not fit for work and are in need of assistance. People who cannot or not sufficiently secure their livelihood with the wages they earn or assets are classed as in need of assistance.

Normally, the application is submitted by one person of the domestic unit. Every member of a domestic unit can also apply individually for the Citizen’s Allowance. The income and assets of the persons in question and the spouse or partner living with them are taken into account when calculating the benefits. The income and assets of the children living with them are only taken into account in terms of the needs of these children but not for the needs of their parents.

Benefits under the Twelfth Social Code are available to persons and households who are

• not able to work or have reached the age limit for the standard old-age pension of the statutory pension insurance; and
• cannot cover their needs on their own; and
• have no (sufficient) claims from upstream insurance and pension schemes.

The Citizen’s Allowance and benefits of basic insurance for old age and in case of reduced earning capacity under the Twelfth Social Code are only available on application. On the other hand, benefits for income support according to the Twelfth Book of the Social Code are received as soon as the social authorities become aware of them.

Eligibility requirements

Income support pursuant to the Social Code XII

The benefits under the Twelfth Social Code (SGB XII) that ensure subsistence include income support and basic insurance for old age and in the event of reduced earning capacity. Which of these benefits is considered in the individual case depends on whether or not a person is permanently fully incapacitated for work or has reached the statutory retirement age.

People residing in Germany

• at a working age who are unable to support themselves; and
• are temporarily unfit for work.

are entitled to subsistence support pursuant to the Third Chapter of the Social Code XII if the other requirements are met.

Basic income support in old age and, in the event of reduced earning capacity in accordance with the Fourth Chapter SGB XII, replaces subsistence support if a person in need of assistance who resides in Germany is of legal age and

• has reached the age limit; or
• is permanently fully incapacitated due to health reasons.

What both benefits have in common is that a claim only exists for persons who cannot provide for themselves

• neither from their own resources (income and assets);
• from their own strength (use of their labour),

even with the help of a third party.

Citizen’s Allowance (basic jobseekers’ allowance pursuant to the Book II of the Social Code)

People who are over 15 years and have not reached the age entitling them to receive an old-age pension (65 to 67 years), are for work but in need of assistance and have their habitual abode in Germany may apply for the Citizen’s Allowance.

The Citizen’s Allowance is based on a household principle. This means that in addition to the beneficiary who is able to work also every member of a household who shares the same needs community and qualifies for benefits can apply individually for benefits to secure a humane subsistence level. This also means that the income and assets of the persons in question and the spouse or partner living with them are taken into account when calculating the benefits. The income and assets of the children living with them are only taken into account in terms of the needs of these children but not for the needs of their parents.

What am I entitled to and where can I apply for the benefits?

The municipal authorities (social security offices) are responsible for paying out the social insurance benefits.

Payment of the Citizen’s Allowance is the responsibility of the jobcentres. Payment of the basic jobseekers’ allowance is either the responsibility of the Federal Employment Agency and the municipal authorities jointly or, in 104 cases, authorised municipal authorities (municipal jobcentres).

The Basic Law (Grundgesetz, GG) guarantees the basic right to a minimum subsistence level for human beings. Article 1(1) of the Basic Law and the Welfare State Principle of Article 20(1) of the Basic Law are decisive here. They ensure that every person in need of assistance has the financial means

• for the necessary subsistence; and
• for a minimum level of participation in social, cultural and political life.

Benefits from social assistance under the Twelfth Social Code (SGB XII) and the Citizen’s Allowance (basic income support for jobseekers under the Second Social Code (SGB II)) equally aim to secure the minimum subsistence level for human beings. For this reason, the legal provisions for subsistence needs are largely the same in both laws.

With the Citizen’s Allowance, however, those who are fit for work are encouraged to take up gainful employment. The principle of “develop and challenge” applies here. This means that those entitled to benefits must exhaust all possibilities to end or reduce their need for assistance. Anyone who does not actively seek work or misses appointments at the Jobcentre without excuse may have the amount of their Citizen’s Allowance reduced.

The necessary subsistence is covered by the standard needs – as far as it is possible to calculate a lump sum. However, the standard needs, which are uniform throughout Germany, are differentiated according to

• the age of a person, i.e. whether child, youth or adult;
• whether adults live alone or with partners;
• whether a person does not live in a flat.

For this reason, the standard needs are divided into six standard needs levels. These cover the costs of food, personal hygiene, household goods and the needs of daily life on a flat-rate basis.

These standard rates have applied since 1 January 2023:

In addition to the standard needs, there are benefits for accommodation and heating, which are provided in the amount of the actual expenses, as far as these are appropriate, and, if necessary

• Supplements for additional needs for specific groups (e.g. single parents, pregnant women, people with special costly nutritional requirements due to specific diseases, etc.).
• One-off benefits that are not included in the standard needs, e.g. clothing during pregnancy and at the birth, or an allowance for furnishing accommodation for the first time with furniture and household devices.
• Educational and integration packages for children and young people, for school outings, field trips, school needs, transport to school, common lunch catering, sport, culture and leisure in the community as well as, under certain circumstances, remedial lessons and private tuition.
• Children, adolescents and young adults who are entitled to the Citizen’s Allowance (standard needs level 3, 4, 5 or 6) additionally receive a monthly immediate supplement of EUR 20.

The monthly subsistence minimum to be covered in a specific individual case results from the sum of all individual needs, otherwise known as the total need.

While receiving the Citizen’s Allowance, the Jobcentre pays:

• health insurance contributions;
• contributions to long-term care insurance.

The external service of the competent service provider inspects the applicant’s living and earning situation.

Application forms

Subsistence aid starts as soon as the competent local social security provider learns about it. Subsistence income support at old age and a reduction to earning capacity are available only on application. You make the applications at the office of the welfare authorities of the city or community in which you live. You can apply for the Citizen’s Allowance at your local jobcentre. Generally, this is the jobcentre of the area where the beneficiary normally resides. You can obtain further information there as well as in the citizens’ advice centre at the town hall where you live.

Your rights

The service providers where the application is submitted are always obliged to provide advice. Additionally, non-statutory welfare agencies and trade unions, among others, offer advice, which is free for their members, on social rights issues. Charitable associations such as unemployment centres help those in need with the forms and will also accompany you, if required, to the public authorities.

European Commission publications:

• http://ec.europa.eu/social/main.jsp?catId=849&langId=en

Further information

Subsistence aid starts as soon as the competent local social security provider learns about it. Subsistence income support at old age or in case of a reduction of earning capacity and other benefits under the minimum benefit system are available only on application. You make the applications at the office of the welfare authorities of the city or community in which you live. You can apply for the Citizen’s Allowance at your local jobcentre. You can obtain further information from the competent service provider as well as at the citizens’ advice centre at the town hall where you live, or you can use the website for your city, town or community (normally www.Name.de, e.g. https://www.berlin.de/ or http://www.muenchen.de/)

The website of the Federal Ministry for Labour and Social Affairs is http://bmas.de