Fired in Germany? Check which unemployment benefits you are entitled to!

You lost your job in Germany and don’t know what to do next? Don’t panic – the German system offers various forms of support, but it’s important to know what you can apply for and when. In this post, you’ll learn how unemployment benefits work in 2025, who is entitled to them, and what amount you can expect.

What benefits are available to the unemployed in Germany and how do they differ?

At first glance, the German support system for the unemployed may seem quite confusing. But relax – it can be understood.

Unemployment benefits in Germany come in two main forms: ALG I (Unemployment Benefit I) and Bürgergeld.

The first is an insurance benefit – it is for individuals who have paid contributions and worked for a certain period. Bürgergeld, on the other hand, is a form of social assistance – for people who have no means of subsistence and do not meet the ALG I requirements.

Importantly – both benefits are legal and paid by the state, but they differ in amount, eligibility criteria, and procedure. So if you have just lost your job or are considering a job change – it’s worth knowing what support you can use and how to fight for it.

Amount of unemployment benefits in Germany – how much is ALG I 2025 and how do you calculate it?

The amounts paid under ALG I are not random – it is a specific percentage of your previous net salary. In 2025, a simple conversion key applies: 60% for individuals without children and 67% for individuals with at least one child.

This means, for example – if you previously earned 2,500 euros net, you can receive between 1,500 and 1,675 euros monthly. The amount of benefit naturally depends on the tax class – individuals in class III (e.g., married) receive more than those in class I. There are also limits – the maximum amount of unemployment benefits in Germany in 2025 ranges between 2,640 and 3,425 euros gross, depending on class and number of children. This is a decent support, but only if you were previously legally employed and systematically paid contributions.

When and how long are you entitled to unemployment benefits in Germany?

Unemployment benefits in Germany are not automatically granted to everyone who loses their job. To be able to apply for it, you must meet several conditions – the most important is the contribution period. You must prove at least 12 months of paid contributions in the 30 months preceding the job loss. Important: Times of child care (up to the age of 3) or prolonged illness also count. The duration of payments depends on age and work experience – for example, a person over 50 with 30 months of work experience can receive ALG I for 15 months. When are you entitled to unemployment benefits in Germany? When you meet the insurance conditions, register as unemployed in time, and are available for at least 15 hours of work weekly. Formalities are also crucial – without completing them, payment can be delayed or stopped.

Entitlement to unemployment benefits in Germany vs. Bürgergeld – what is this benefit and who can receive it?

Bürgergeld is the new name for social assistance, which replaces the former benefits from the Hartz IV system in 2025. It is for individuals who do not qualify for ALG I or whose payment period has exhausted and who do not have sufficient means to live. To apply for it, you must meet several conditions: permanent residence in Germany, no significant savings (up to 40,000 euros for the entire household) and a willingness to work for at least 3 hours daily. The basic amount for Bürgergeld in 2025 is 563 euros monthly for an individual, with the possibility to receive housing and education allowances. Even if these are not large amounts, it is for many real support during the transition without employment. Unlike ALG I Bürgergeld does not require a contribution history – but it still requires fulfilling formal and social criteria.

How to apply step by step for German unemployment benefits and what must you not miss?

Applying for ALG I is not difficult – as long as you do it in time and with complete documentation. The most important are three steps:

• Declaration of job-seeking intentions (preferably right after termination),
• Registration as unemployed,
• and submission of the complete application to the employment agency.

You need, among other things, employment contracts of the last 5 years, pay slips, tax data, and – if applicable – family documents. You can submit the application online or in person. Remember that a delay of just a few days can lead to a reduction in the benefit – by 1/30 of the monthly amount for each day of delay.

Regarding Bürgergeld, the procedure is similar, but different forms and additional asset-related requirements apply. For both benefits, it’s worth documenting everything well – because mistakes can delay payment by several weeks.

Do you have to be taxed when you receive unemployment benefits in Germany? How does it work in practice?

This is a common question – and quite justified. ALG I is exempt from income tax, but beware: it is subject to the so-called progression clause. What does that mean? This is a mechanism that can increase the tax rate for your other incomes. So if you received unemployment benefits in a year and, for example, also had additional incomes from work, leasing, or self-employment, the tax office can levy higher taxes on this second part. So – do you have to be taxed when you receive unemployment benefits? Yes – if the total annual benefit exceeds 410 euros.

Bürgergeld, on the other hand, is completely tax-free and does not lead to any tax obligation. But it’s worth considering: even if you had no other incomes, a tax declaration may be formally required – and submission protects you from future problems.

Want to be sure everything is in order and you don’t overlook any obligations?

With Taxando, you can complete your tax return from Germany conveniently, in Polish, and stress-free – even if you received unemployment benefits that year.