Unemployment > Hartz IV > Additional Child Benefit

Hartz IV Additional Child Benefit

Definition, Explanation

In the course of the Hartz IV reform, the so-called additional child benefit was introduced, as defined in § 6a Bundeskindergeldgesetz. The purpose of the additional child benefit is to support low-earner parents such that they do not require any other Hartz IV benefits. The additional child benefit is paid in addition to the child benefit. Receivers of unemployment benefit II, social money, or of social welfare benefit do not receive additional child benefit. The basic premise for entitlment to additional child benefit is that the income of the parents suffices for themselves but is not enough to fulfil the children's needs as well.

Parents are entitled to receive additional child benefit if the following criteria are met:

• the children are below the age of 25, unmarried and living in the shared household
• the parents receive child benefit or a similar benefit
• the monthly income, e.g. from self-employment or employment, unemployment benefit I, sick benefit, is equal or above the minimum income limit. The minimum income is 900 Euros for parent couples, and 600 for lone parents
• income and assets do not exceed the maximum income limit
• there is no unemployment benefit II, social money, or social welfare benefit received

Amount of the additional child benefit:

• Maximum 140 Euros per child per month, whereas for several children, a shared additional child benefit is formed
• The additional child benefit is reduced when the income grows higher than the minimum income

For the evaluation whether parents are entitled to additional child benefit, and to what amount, one takes into account the income and assets. The same conditions apply as do for income and assets of receivers of Hartz IV benefits. However, the regular child benefit and the accommodation and heating benefit are not counted as part of the income, since they are entrusted for specific purpose.

Also, for the calculation of the additional child benefit, the incomes and assets of the children are taken into account. If, for instance, a child receives monthly alimony of 90 Euros, the additional child benefit will be down to 50 Euros.

Calculation of the amount of additional child benefit:

• Assessment ceiling, calculated as the sum of
  • Hartz IV regular benefits received by parents plus any benefits for additional demands
  • the parents' per cent share of the real and appropriate accommodation and heating costs

Basic security benefits according to Hartz IV (without additional demands)

Receivers	% of regular benefit	Amount in Euros
Singles	100.00%	359
Parent couples	2 x 90 %	359x90%x2 = 646
Children up to 6	60.00%	215
Children 7 to 14	70.00%	251
Children 15 to 25	80.00%	287

 

 

 

 

 

 

 

 

Parents' share of accommodation and heating costs

Lone parent with	Parent's share in %	Parent couples with	Parents' share in %
1 child	75.90	1 child	83.11
2 children	61.16	2 children	71.10
3 children	51.21	3 children	62.12
4 children	44.05	4 children	55.12
5 children	38.65	5 children	49.59

• The assessment ceiling, being the basic required amount of the parents, is for accommodation costs of 800 and 3 children:
• Parents' basic requirements plus their share of accommodation costs, that is 646 Euros + 62.12 % x 800 Euros = 1,143 Euros.
• The basic required amount of the family is € 646 (parents) + € 215 (5-year-old) + € 251 (14-year-old) + € 287 (16-year-old) + accommodation costs = € 2,199.
• The maximum income limit is calculated as the sum of assessment ceiling and total additional child benefit. In this example, the maximum income limit is € 1,143 + 3x€ 140 = € 1,563
• If the really available income (counted income minus tax, social insurance, income-related expenses, exempt amounts etc.) of the parents is between 1,143 Euros and 1,563 Euros, then they are entitled to additional child benefit
• With an income of 1,143 Euros, the child benefit is 420 Euros. With an income of 1,304 Euros (pre-tax 2,500) however, this assessment ceiling is exceeded by 161 Euros. For every 10 Euros of this exceeding amount, 5 Euros are cut off the additional child benefit. In the example, the additional child benefit is reduced like this: 161 Euros means 16 times 5 = 80 to be cut off the additional child benefit. The remaining additional child benefit received is 420 – 80 = 340 Euros

The additional child benefit is transferred together with the regular child benefit, to the one who has applied for the additional child benefit.

Persons whose unemployment benefit I has turned into unemployment benefit II and who are therefore receiving a temporary compensatory additional benefit, do not receive additional child benefit. However, a receiver of unemployment benefit II can choose between the temporary compensation and the additional child benefit.

Tips, Checklist

• Due to the complexity of the calculation of how much additional child benefit is granted, we do not describe that in more detail, here. Have your entitlement and amount calculated by your Familienkasse in your labour agency. Also check the alternative of applying for unemployment benefit II in addition to your income
• Check in how far you are entitled to additional child benefit, e.g. with the additional-child-benefit calculator (see addresses in information paragraph). The earlier you apply, the better. Early application avoids losing benefits, because there will be payment of additional child benefit for past months
• You have to apply for additional child benefit in written. Fill the form available at the Familienkasse of the labour agency, or online. Certify your stated income and assets, which is not required if it has already been acknowledged by the labour agency
• Apply for additional child benefit at the Kindergeldkasse, respectively Familienkasse in the tax office
• If the application for additional child benefit is refused, with a refusal letter, you should check in how far you can apply for unemployment benefit II
• If you are entitled to the temporary compensatory additional benefit, you should calculate whether you would be better off with the additional child benefit or with the temporary compensatory additional benefit, because you can choose

Note:

Due to the most complex conditions and calculations related to the additional child benefit, it is not guaranteed that the above information is true. Therefore, consult at least one responsible authority like the Familienkasse or the labour agency and have your entitlement and amount calculated. Compare whether the result matches what you know. If not, you should employ a legal adviser specialized in Hartz IV.

Last update: 01/07/2010