Unemployment > Hartz IV > Income

Hartz IV: Income

Definition, Explanation

One only receives benefits of the basic security for jobseekers, that is mostly unemployment benefit II and social money, if one is in need of support. That is fulfilled if one does not have enough income and assets to maintain a living. In the determination of need of support status, all incomes and assets of the household-unit in need are taken into account.

What counts as income:

• income from self-employment (gained profit, respectively profit before tax) and employment, also as an additional income parallel to receiving Hartz IV
• alimony payments, child benefit, parents benefit if above the threshold monthly amount of € 300. Exception: child benefit is given to the child who does no longer live in the household
• capital yields, interest yields, stock payouts
• unemployment benefit I or health benefit
• pensions, also injured-pension
• income from renting and leasing, agriculture and forestry
• tax refunds, assets for operational expenses

Not counted as income is so-called privileged income:

• basic pensions according to Bundesversorgunsgesetz BVG (maintenance Act)
• child-raising benefit
• parents money over the threshold amount of € 300, respectively € 150 for double reference period
• blind money
• nursing money, for the person in need of nursing care as well as for the nursing person who is not in an employment relationship with the persons in need of nursing care (nursing care benefit, nursing care insurance)
• home buyers benefit for real estate the buyer lives in
• income from 1-Euro-jobs

To subtract from the income:

• taxes to be paid, that is salary-/income-tax, solidarity surcharge, church tax, trade tax, capital yields tax
• compulsory contributions to social insurance, that is health-, nursing-, pension- and unemployment-insurance
• old-age support for farmers, craftsmen- and accident-insurance, nursing care insurance of self-employed who are compelled to deduct social insurance contributions
• contributions to public or private insurances
  • for compulsory contributions like the automobile liability insurance, the whole amount can be subtracted from the income
  • for appropriate private insurances 30 Euros per month
  • for voluntary, private health-, nursing care-, pension, accident-, working- and employment-incapability-insurances and life insurances for persons who are not compelled to be insured in social insurance respectively are self-employed, the full contribution amounts are subtracted from the income. Governmental support to the contributions is added again
• old-age provision within the range of minimum monthly contributions of Riester-pension
• income-related expenses for double households, contributions to professional associations and trade unions, working material and professional clothing, travelling costs. Self-employed must certify such expenses
• expenses deriving from legal obligation of maintenance
• amounts that have already been taken into account in the benefit calculation
• for gainfully employed, a monthly exempt amount for gainful employment (§ 30 SGB II). It is subtracted from the pure, monthly income (see above) and amounts to:
  • always € 100 (basic exempt amount)
  • for a monthly pre-tax income up to € 800: plus 20 % of the income part above € 100
  • for a receiver of unemployment benefit II with a monthly pre-tax income between € 800 and € 1,200: plus 10 % of the income above € 800
  • for a receiver of unemployment benefit II with a minor-aged child and a monthly pre-tax income between € 800 and € 1,500: plus 10 % of the income above € 800
  • a monthly pre-tax income above € 1,200, respectively € 1,500 for a receiver of unemployment benefit II with a minor-aged child, is totally subtracted from unemployment benefit II

Examples for the calculation:

• Receiver of unemployment benefit II earning € 400 a month:
  basic exempt amount = € 100
  20 % of € 300 = 60 €
  exempt amount total = 160 €
  subtraction from unemployment benefit II = € 240
  Thereby, the unemployment benefit standard amount for a single, receiver of unemployment benefit II changes from € 359 to € 119. Then, including his income, he has € 519 plus additional benefits
• Receiver of unemployment benefit earning € 1,000 a month:
  basic exempt amount = € 100
  20 % of € 700 = € 140
  10 % of € 200 = € 20
  exempt amount total = € 260
  Subtracted from unemployment benefit II: € 640
  A household-unit in need consisting of 2 partners, receives € 646 if there is no additional income. The income of € 1,000 decreases the unemployment benefit II standard amount to € 6. So, they receive € 1,006 plus additional benefits

Money received is counted for the month of receiving. If too much unemployment benefit 2 or social money has been given, it has to be given back.

Tips, Checklist

• In your application for unemployment benefit II or social money, specify your income and assets correctly. Your responsible ARGE or municipality will decide which parts of it are taken into account. Also, they are obliged to verify the specifications, that is also others may be consulted, like your pension insurer or the revenue
• assets have to be specified in the application form in appendix “VM”

Last update: 05/04/2010