Unemployment insurance: benefits, rates, tipps - Working-in-Germany
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Unemployment insurance



Definition, Explanation

One element of German social insurance is statutory unemployment insurance. Legal basis is constituted in SGB III, third book of Social Code. Its function is to alleviate the financial consequences of unemployment. The most important benefits are payment of unemployment benefit, unemployment benefit II and short workers money. Others are occupational advice, job placement service and qualifying education. The insurance carrier is the labour agency, Bundesagentur für Arbeit. In contrast to other social insurances, for the statutory unemployment insurance there is no private equivalent. Major goal of unemployment insurance is to bridge temporary unemployment in between two jobs.

Who is unemployment-insured:

Who is freed from the obligation to be unemployment-insured:

Insured persons are entitled to benefits from the labour agency.

Contribution rates for unemployment insurance

Unemployment insurance is financed from monthly contributions that are paid half by employees and half by employers. The amounts depend on gross wages – since Jan 1 2008 it is 3.3 per cent in total, that is 1.65 per cent for an employee, up to a contribution assessment ceiling of presently 5,300 Euros a month in the old West-German federal states and 4,500 Euros in the new Eastern states. Clerks as well as self-employed are excluded from contributions and benefits of unemployment insurance

Benefits of unemployment insurance:

Those benefits are paid by the labour agency.

Problems and critique about unemployment insurance:

Tips, Checklist



Last update: 17.12.2008

Copyright: Angela Bauer