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How much is unemployment in Germany?

Suppose you are planning to emigrate and have chosen Germany as your destination. In that case, you will probably worry about the days when you lose your job for any reason—how you will handle your assignments and continue to live if this happens. As a socialist country with an unemployment rate below four per cent, Germany has enacted flexible and encouraging unemployment laws. Unemployment insurance in Germany is not only granted to German citizens, but all those working there can use unemployment benefits. Now, how much is this salary? What people does it belong to? And how long can these rights be used? These are the questions that we have answered in this article.

Unemployment insurance in Germany

Germany has two types of unemployment benefits for those who are temporarily unemployed. Type one unemployment benefits or ALG I and type two unemployment benefits or ALG II. Each of these unemployment insurances is granted to certain people under special conditions, which we have explained in the scope.

Unemployment insurance type one ALG I in Germany

Type 1 unemployment insurance in Germany is granted to people who have paid their insurance premiums in Germany or EU member states for at least 12 months in the last three years. In this case, the German Labor Office (Bundesagentur für Arbeit) pays unemployment benefits to a person who has lost his job based on the average salary he received in those 12 months.

Unemployment insurance type two ALG II in Germany

This insurance is given to people who want to meet their basic needs, who have been unemployed for a long time, who have part-time work, and whose income is not enough to meet their needs. Of course, receiving type 2 unemployment benefits in Germany requires an assessment by insurance experts. To obtain this insurance, you must prove to these experts that you can receive type 2 insurance benefits. For example, you must meet the following conditions to acquire type 2 unemployment insurance in Germany:

  • Have the ability to work
  • Be eligible for financial aid
  • Be at least 15 years old and have not reached retirement age
  • Be a resident of Germany
  • Have a work permit in Germany

If you meet all these conditions and your application for German type two insurance is approved, you will receive these services from this insurance:

  • Providing basic needs such as food, clothing and housing
  • The cost of heating devices
  • Providing home furniture
  • Insurance
  • Paid services for educational and cultural purposes

Who is entitled to unemployment insurance in Germany?

As mentioned in the first part of this article, Germany not only gives unemployment benefits to German citizens but all people who have worked in this country are included in unemployment benefits. In some cases, even people who have not worked in Germany can receive unemployment benefits from the government of this country. In general, three categories of people are eligible to receive unemployment benefits in Germany:

German unemployment benefits for refugees

Those who apply for asylum in Germany and are accepted initially due to lack of money or a low level of German language proficiency can apply for unemployment insurance, and the German government usually agrees with these requests. The insurance given to the refugees includes the cost of housing, health insurance and monthly living expenses.

German unemployment benefits for people without a German job

The German government has provided complete and reassuring programs to cover the living expenses of its citizens. If a German citizen becomes unemployed or faces difficulties meeting his financial needs, the Labor Department will cover his living expenses by paying unemployment insurance.

German unemployment benefits for non-German unemployed persons

People who have worked in Germany and now lost their jobs due to layoffs or any other reason can benefit from unemployment benefits by declaring their unemployment to the labour department. Of course, this is if these people have been employed for at least 12 months in the last three years. If this amount is less than 12 months, the salary they receive and the period for which these salaries are awarded to them will be less. It is better for people who lose their jobs to inform the German Employment Office immediately and without thinking about it. If they do the notification late, they will be fined for three months, withholding unemployment benefits. For example, if the labour department determines that they will receive unemployment benefits for up to six months, these six months will be reduced to three months.

Unemployment rights in Germany

The previous section said that to receive unemployment benefits; people must have at least 12 months of work experience in Germany or EU member states. Now we want to know how much this salary is and how it is calculated. The compensation you receive as unemployment benefits is 60% of the average wage you receive when employed. If you have children, this amount increases to 67%, and the maximum unemployment benefit received in Germany is 6,500 euros. Remember that your unemployment benefits are subject to taxes and deductions, just like when you were employed. Your unemployment benefits will also include the following conclusions:

  • Legal health insurance
  • unemployment insurance (1.5%)
  • Pension insurance (9.45%)
  • income tax
  • Long-term care insurance

Who is not entitled to unemployment insurance in Germany?

Germany pays unemployment benefits to everyone who has worked in the country or an EU member state but only to some who live in Germany. For example, Germany does not pay unemployment benefits to those who enter the country with a study visa or a job seeker visa. Germany allows students studying at universities to work legally while looking. Still, it is a choice for students to work or not, and they cannot receive a salary while unemployed. Also, Germany gives short-term visas to job seekers in this country. Living expenses while the jobseeker is looking for work in Germany are his responsibility, and the German government is not responsible for the unemployment of these people. Students and job seekers can only receive unemployment benefits if their visas are converted to permanent residence visas.

Of course, this law is different for German citizens. If a German family cannot afford their child’s education, the government will pay the child a stipend, but this is only for German citizens.

Unemployment benefits in Germany for accompanying visa

If you immigrate to Germany by getting married and your spouse loses his job, the German government will pay you unemployment benefits. The German government supports families who have worked in this country and delivers them unemployment benefits in case of temporary unemployment. And, of course, the government helps you until you find a new job, and you must regularly from the moment you receive your salary. Unemployment, look for a new job. If the insurance adjusters determine that you are not trying to find work, they will cut off your unemployment benefits.

last word

In this article, we have tried to collect everything you need about unemployment insurance in Germany. Although the study visa does not include unemployment insurance, there are other ways that you can convert your study visa into a work visa and benefit from the benefits of the German government by staying in Germany.

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