Unemployment > Hartz IV > Additional Income

Hartz IV: Additional Income

Definition, Explanation

You can receive Hartz IV benefits and at the same time earn some additional money in a side-line job. It is called additional income. There is no limit on the monthly amount of additional income. What is counted is the pre-tax income, and the way in which additional income interacts with the unemployment benefit II is: As soon as additional income exceeds a certain exempt amount, the unemployment benefit II will be reduced by certain percentages depending on the amount. In figures, that is:

• You have a basic exempt amount of 100 Euros per month which you can earn in addition to your receiving unemployment benefit II and the benefits for rent, heating, additional demands. This basic exempt amount includes
  • a lump-sum for income-related expenses of 15.33 Euros
  • setoff amounts for Riester pension and other private insurances, amounting to 30 Euros
  • travelling costs
• However much you earn more than the 100 Euros will reduce your unemployment benefit II in the following way:
  • With additional income of 101 up to 799 Euros, you can keep 20 above the 100 Euros, that is, the exempt amount of 100 Euros plus 0.50 Euros up to maximum 150 Euros
  • With additional income of 801 up to 1,200 Euros, you keep 240 Euros plus 10 per cent of the amount above 800 Euros, that is up to maximum 40 Euros. Thereby, besides the unemployment benefit II amount, there also results an additional amount of 280 Euros, respectively 310 with a child
• The numbers refer to pre-tax income
• The exempt amounts are taxless, just as Hartz IV benefits are

If you have an income of more than 400 Euros, and if the reducible amounts for the basic exempt amount are higher than 100 Euros, then the travelling costs can be set-off.

Income	Exempt amount
Up to € 400	€ 100 (= basic exempt amount)
Up to € 800	€ 100 plus 20 % of the income above € 100
Between € 800 and € 1,200 without a minor-aged child	€ 100 plus 20 % of the income above € 100 plus 10 % of the income that is above € 800
Above € 1,200 / € 1,500	No exempt amount, income reduces benefits, to the max

 

Calculation Examples:

• Receiver of Hartz IV benefits with additional income of 400 Euros a month:
  basic exempt amount € 100 plus 20 % of € 300 = total € 160. This amount is received in addition to the Hartz IV benefits
• Receiver of Hartz IV benefits with additional income of 1000 Euros a month:
  basic exempt amount € 100 plus 20 % of € 700, plus 10 % of € 200 = total € 260. This amount is received in addition to the Hartz IV benefits

If you earn extra money just for one time, and your additional income therefore once exceeds the upper limit of 1,200 respectively 1,500 Euros, then your unemployment benefits are not ceased. Rather, your one-time earning will be virtually distributed over several months

Tips, Checklist

• Accept offers of mini-jobs or even insurance-compelling jobs or do something by self-employment, in order to earn additional money. It can, in the long run, lead to a position in which you are independent from unemployment benefit II
• Report your job to your case manager or contact person in the labour agency or the ARGE, or the municipality. If you do not, you incur a penalty for clandestine employment
• If your expenses exceed the basic exempt amount, e.g. because you have higher travelling costs, you must certify them. Then, the actual expenses will be taken into account
• Optimal earning possibility in parallel to Hartz IV is given in 400 Euro Jobs. These are free from social insurance contributions compulsion and you can keep 160 Euro, completely, of the earnings
• For a no more than one-time additional income, you should consult your case manager or contact person in the labour agency, ARGE or municipality concerning how to have it best distributed over several months

Last update: 04/20/2010