Applying for unemployment benefit: what you need to know

It happens to all of us at least once in our lives: You want to quit your job, won't have a job soon or simply need more time to look for a job? Then you've come to the right place! In our article, you can find out everything you need to know about unemployment benefit in Germany, how to apply for it, what requirements you need to meet, as well as how long and how much unemployment benefit you will receive. Whether you are new to the subject or have already taken your first steps, we will give you an overview so that you are well prepared.

What is unemployment benefit and who is entitled to it?

Unemployment benefit (ALG I) is financial support for people who have lost their job and have paid into unemployment insurance for a certain period of time. Unemployment benefit I is the classic unemployment benefit, but it is only paid for a certain period of time.

There is also the citizen's allowance - for her unemployment benefit II. It provides you with basic benefits and is paid to you for as long as you need financial support. You can also receive the citizen's allowance if your salary falls below a certain limit. 

However, this article is about unemployment benefit: So if you have no income at all at a certain point in time, you've come to the right place!

Requirements for receiving unemployment benefit

To apply for unemployment benefit, you must meet various requirements. Here are the most important points when you are entitled to unemployment benefit:

• Unemployment or imminent unemployment must be reported to the employment agency (three days after receipt of the notice of termination or at the latest three months before the end of the employment relationship)
• You must have been employed subject to compulsory insurance for at least 12 months in the last two years - you can also add several jobs together here. 
• You must actively look for a new job and be prepared to accept offers and training from the employment agency.

Examples of these placement measures offered by the employment agency can be extended foreign language courses, applicant training or retraining courses. For non-EU citizens, it can be very helpful for your future job search to have your foreign qualifications recognized, as this will greatly improve your chances on the German job market. Attending German courses is also recommended here - but even without German language skills, you have a good chance of finding a job. We have compiled more information in our article on how to find a well-paid job without knowing German: How to: Working without German language skills.

Here is an important note: If you want to receive unemployment benefit, you must contact the Employment Agency. On their website you will find all the latest information on registering as unemployed, advice centers and you can also download all applications. They will support you throughout the entire process and will also take care of the recognition of your foreign training, for example.  

How much is the unemployment benefit and how long is it paid for?

Unemployment benefit is there to secure your standard of living for a certain period of time, but unfortunately it still makes a big financial difference. The period is also limited: If you are under 50 years old, you can only receive unemployment benefit for a maximum of one year! Different rules apply if you are over 50. 

General: How long you receive unemployment benefit depends on your age and the number of years you were previously (fully) employed. As a rule, unemployment benefit is paid for 6 to 12 months; for older employees, the length is staggered. Between the ages of 50 and 54 you receive 15 months of unemployment benefit, up to 57 years 18 months and from 58 years you are covered for a full 24 months (source: comcave.de). 

The amount of unemployment benefit depends on your last salary. In addition, the federal state, your tax class and the number of children (child benefit) all play a role in how much unemployment benefit you are entitled to. To give you a better idea, here are a few examples:

• As a chef, you have a monthly income of € 2,500, tax class 1 and live in Saarland (one of the old federal states): You will receive around 60% (without children) or 67% (with children) of your net earnings, i.e. around €1,000 to €1,200 per month.
• With an annual salary of €45,000 - monthly salary of €3,750 (for example as a mechatronics technician), your unemployment benefit is €1,482.90 with tax class 1, without children, in the old and new federal states. 
• As a family man with a monthly salary of €4,580 (€55,000 annual salary) you will receive around €2,147, as a single person only €1,749.

To get a rough idea of how much unemployment benefit you are entitled to, you can use the unemployment benefit calculator from the Federal Employment Agency. The amount calculated is not legally binding - i.e. it can give you an approximate value and you can find out the actual value at the Employment Agency. 

The same applies in Germany: the more you earn, the more you have to pay in taxes - but you also get a lot more unemployment benefit in emergency situations! If you're currently looking for a job, why not aim for a high salary? Find out about the best-paid professions in Germany here !

Application for unemployment benefit

Applying for unemployment benefit is relatively easy as long as you have all the necessary documents to hand. Here is a brief overview of the process:

1. Register as unemployed: You can do this in person at the Employment Agency or online, preferably directly or on the first day of your unemployment. 
2. Prepare documents: You will need your identity card with your current registration address and the certificate of employment completed by your employer.
3. Other documents that may be requested include, for example, a letter of resignation, a declaration that you have given up work, a certificate of receipt of sickness benefit, a certificate of additional income, proof (notice of approval, proof of benefits) of previous receipt of unemployment benefit (also from another employment agency)
4. The agency will check your details and let you know by post or online whether they approve your application. 
5. You've done it! Then the unemployment benefit will be transferred monthly in arrears to the specified account free of charge.

The whole process of applying for unemployment benefit usually takes 5 days and at the end of the month you have the money in your pocket!

WorkerHero - Your partner for the next job

If you apply for unemployment benefit, this is unfortunately only a temporary solution for a certain period of time. But maybe you're already ready for the next step? WorkerHero can help you find a job again quickly - whether you work in the skilled trades, logistics or industry. Register with WorkerHero, create your profile and we'll help you find the right job in Germany!

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