 This is the hot topic of the Summer 2004. The German government is panicking,
looking for a possibility to reduce the 4.3 million unemployed people in Germany.
Many reasons are put forward why there are so many unemployed.
Employers moan on the bureaucratic drive to regulate. Many demand “hire
and fire” but German employees are all choked
up on that suggestion since they enjoy an extremely high protection
once they are hired. Employees consider the renamed labor office (from
Labor Office to “Agency for Work” as incompetent to help them get a job
because they are only managed and not consulted – in spite of 90.000
officers.
Unemployment money (“Arbeitslosengeld”) and social aid (Sozialhilfe)
are being merged. The present system is two-fold. After being laid off,
you will receive unemployment money for up to 32 months and afterward,
in the case of neediness, you will receive unemployment aid (“Arbeitslosenhilfe”).
Unemployment aid is a social support only for the unemployed after
having received unemployment money. Unemployment money is financed like
an insurance.
It belongs to your “social security deductions” from your salary.
Unemployed aid is financed from tax revenues.
The new changes coming 2005 - in a nutshell - are unemployment welfare
will be abolished and go up in social money. Grantees of social money
will be able to use the services of the “Agency for Labor” to find a
job.
A lot of commotion is to be heard because this is one of deepest reaching reforms in social security in Germany.
Who the winners ? The grantees of social welfare.
Who the loser ? The 500.000 grantees of unemployed welfare. Previous social welfare (Sozialhilfe) becomes now social money (Sozialgeld).
Who is entitled to Arbeitslosengeld II?
Unemployed persons and grantees of social welfare will receive upon application Arbeitslosengeld II and fulfilling the requirements.
The basic requirements are:
You are capable of working if you are:
1. between 15 and 65 years old,
2. able to work at least three hours a day.
How much do you get?
That depends if you are either single or married, either live in
western or eastern Germany. You, your spouse, your children (living in
the same household with you) will receive funds for living costs and
for an appropriate apartment (including heating and additional costs).
The appropriateness of your rental costs is quite demanding. You might
also have to start using your savings before receiving Arbeitslosengeld II.
| |
# / age |
€ / East |
€ / West |
| |
1 / < 7 |
€ 119,16 |
€ 124,20 |
| Children |
2 - 3 / < 16 |
€ 119,16 |
€ 124,20 |
| |
or per child |
€ 39,72
but max.
€ 198,60 |
€ 41,40
but max.
€ 207 |
for all children
Law grants you the best for you of each alternative – ex officio!
| Pregnant Women |
€ 56,27
|
€ 58,65
|
| Needy Parents per Child |
max. € 140
|
max. € 140
|
| |
|
|
How much space am I entitled to in my apartment?
The appropriate size of your apartment is for:
| one person |
50 m² |
| two persons |
75 m² |
| three persons |
85 m² |
| four persons |
97 m² |
| per further person |
+ 12 m² |
What are appropriate rental costs?
| No. Person |
Old building** |
New building*** |
| 1 |
€ 227,50 |
€ 225,00 |
| 2 |
€ 267,00 |
€ 270,00 |
| 3 |
€ 318,75 |
€ 333,75 |
| 4 |
€ 361,25 |
€ 378,25 |
| 5 |
€ 407,40 |
€ 451,05 |
| Per further person |
+ 50,40 |
+ 55,80 |
| |
** = buildings built prior 1950 |
*** = buildings built after 1949 |
Must I give up my own house?
Generally not. An own house is also generally considered
as an appropriate apartment. However, dominions may not exceed 120 m²
and houses 130 m². And if they do, then you will not be receiving more
money.
What of my savings, must I use up first?
Yes, you will have to use up your savings as soon as they
exceed the exempt values. Exempt are € 200 per life year; but a minimum
of € 4.100 and a maximum of € 13.000. if you are born before January 1,
1948, you will be entitled have € 520 exempt and at most € 33.800.
On top of that you are entitled to an extra € 750 free for necessary
purchases supposing you exceed these values then you must use them and
after doing so reapply.
Do I have to use my children’s savings or my life insurance first?
All children’s savings, education insurances or
contributions to a home savings bank (Bausparvertrag) are exempt up to
€ 4.100. Law entitles you to an extra exemption of € 200 per life year
for your private old-age security scheme. If the premature realization
of the non-exempt life insurance incurs to a loss of more than 10% then
you are required to liquidize this policy.
Two examples for computing your income from Arbeitslosengeld II:
| Single, no kids |
East |
West |
|
Married, 2 kids |
East |
West |
| Arbeitslosengeld II |
€ 331
|
€ 345
|
|
Arbeitslosengeld II* |
€ 994
|
€ 1.036
|
| Rental costs, incl. |
€ 248
|
€ 317
|
|
Rental costs, incl. |
€ 441
|
€ 538
|
| 1st year |
€ 673
|
€ 693
|
|
1st year |
€ 1.660
|
€ 1.739
|
| 2nd year |
€ 608
|
€ 678
|
|
2nd year |
€ 1.548
|
€ 1.657
|
| 3rd year |
€ 579
|
€ 662
|
|
3rd year |
€ 1.435
|
€ 1.574
|
* = including state child benefits,
 Alexander Baron von Engelhardt - Foreigners Attorney based in Berlin, specialising in domestic,
international, civil and commercial law. He also provides counseling
for start-ups.
Wilhelmstraße 94, D-10117 Berlin
Email:
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Website: www.Rechtsanwalt-AvE.com
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