The Unemployment Benefit 1 (ALG I) - Working-in-Germany
 
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Unemployment Benefit 1 (ALG I)


Definition, Explanation

The unemployment benefit 1 is a benefit of the unemployment insurance. It is regulated in Sozialgesetzbuch Drittes Buch (SGBIII), particularly the paragraphs $$ 117-151, 309-313, 323-325, 434j and 434l. The unemployment benefit 1 is officially counted as remuneration substitute payment, besides the short workers money, insolvency money and partial-unemployment benefit, and is therefore a part of employment promotion. This support is granted when you become unemployed. When your entitlement to unemployment benefit 1 has expired, unemployment benefit 2 can be paid.

People who are entitled to unemployment benefit 1 are:

  • Employees who count as unemployed, which you do when you do not exert an occupation or work fewer than 15 hours a week
  • and who are registered unemployed at the Federal labour agency – which requires personal reporting
  • and whose qualifying period is completed. I.e. in the last 2 years before reporting unemployed, you must have worked at least 12 months in an occupation in which you paid contributions to the unemployment insurance. Therefore, even Mini-Jobbers are entitled to unemployment benefit 1. For military or alternative service and seasonal work, the qualifying period is only 6 months
  • and who are not yet older than 65 years

Further requirements for payment of unemployment benefit 1:

  • You are entitled
  • You are using every opportunity to end your unemployment
  • You assist the labour agency in their efforts of placing you. That is, you are willing to accept a “reasonably imposable” occupation

Duration of entitlement:

  • depends on the duration of paid contributions into the unemployment insurance
  • for 12 months of contributions paid within the last 3 years, unemployment benefit 1 will be paid for 6 months
  • for 24 months of contributions paid within the last 3 years, unemployment benefit 1 will be paid for 12 months
  • anyone of age 55 or older who has paid contributions for the last 3 years will be paid unemployment benefit 1 for 18 months

Amount of the unemployment benefit 1:

  • Depending on the last annual pre-tax income, less social insurance contributions, income tax, solidarity surcharge, the so-called daily performance payment is calculated
  • For the monthly unemployment benefit, a sum of 30 of such days are assumed
  • Unemployed with children: 67 % of the net average income of the last 6 months
  • Unemployed without children: 60 % of the net average income of the last 6 months
  • Additionally to unemployment benefit, the federal labour agency pays contributions to health-, pension- and nursing-care- insurance

Periods of suspension of the benefit are imposed when:

  • you do not report to the labour agency in time (1 week of suspension)
  • have cancelled your last employment yourself. In case of self-cancellation, the suspension period will be up to 12 weeks. Within this period, you will not receive unemployment benefit, nor social insurances benefits, particularly health insurance benefit, and the duration of your entitlement will decrease down to minimum 75 %
  • you do not spend enough effort to find a new job
  • you do not comply with your duties to report, e.g. regarding change of tax class or family status
  • you do not participate in reintegrative actions like further education, or you drop them while they are running

During the suspension periods, no unemployment benefit is paid, nor are any contributions to social insurances paid. Furthermore, the suspension periods decrease the duration of the employee's entitlement.

Interruption period in unemployment benefit 1:

  • If the recipient has been paid a severance money and therefore the employment has ended before expiration of the ordinary cancellation period, then the unemployment benefit 1 will be paid only from the date when the employment would normally have ended
  • If any working remuneration is paid, e.g. through vacation compensation payment

No unemployment benefit is paid, although general entitlement may be given, during receipt of:

A side-line job up to 15 hours per week is allowed during the receipt of unemployment benefit 1, but is subtracted from the unemployment benefit 1 sum except for tax, social insurance contributions, income-related expenses and a free income of 165 €. Starting subvention for supporting the starting of an independent business can be paid.

Tips, Checklist

  • By all means, report unemployed to the labour agency right after receipt of the dismissal notice (even if you intend to take legal action against the dismissal, or if being further or re- employed seems possible). 3 months before your last day of work, at the latest, you are even obliged to do report. For shorter dismissal notification periods or in case of a fixed-term employment contract expiring, reporting is to be done within 3 days after notice of the end of employment
  • When reporting unemployed, bring your dismissal notice including the notice of receipt, respectively the cancellation agreement
  • If you do not report unemployed in time, to the labour agency, a suspension period of 1 week will be imposed
  • Make sure to continue to be health-insured, and pay the contributions
  • Get informed, in advance, on the web-pages of the labour agency about the regulations and requirements for unemployment benefit 1 to be paid
  • Get yourself the application forms from the labour agency
  • Be counselled there, and be helped with filling the forms
  • Get your remuneration certified by the employer. It is their obligation to do so
  • Make sure you comply with your duties to the labour agency:
    • try to get a new occupation on your own
    • remain available, i.e. when you go on vacation or you are sick, you have to inform your responsible case-manager, respectively send a sickness notification
    • maximum duration of vacation is 6 weeks per year
    • Payments of unemployment benefit 1 will continue in case of sickness, and will continue for 3 weeks in case of vacation
    • keep contact with your case-manager and turn to him in case you have questions
    • attend the regular obligatory talks
  • Be careful with refusing jobs offered or reintegrative actions. It means risking suspension periods of up to 12 weeks, or even the total entitlement to unemployment benefit
  • Limitations on what is reasonably imposable to you can be given by a doctor or by certain conditions
  • Report any side-line jobs to the labour agency
  • Comply with requests of the labour agency (e.g. medical or psychological examinations, job counselling)



Last update: 03/02/2011
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