Bürgergeld

Bürgergeld is the central tax-funded basic security benefit for people capable of work in Germany. Its legal basis is the Second Book of the Social Code (SGB II) as amended by the Bürgergeld-Gesetz; the legislation entered into force in two stages on 1 January 2023 and 1 July 2023, replacing the former Arbeitslosengeld II (colloquially known as 'Hartz IV').

Bürgergeld implements the constitutional requirement to safeguard the minimum subsistence level consistent with human dignity (Art. 1 Abs. 1 in conjunction with Art. 20 Abs. 1 GG) for entitled persons capable of work, as set out by the Federal Constitutional Court in its judgments of 9 February 2010 (1 BvL 1/09) and 23 July 2014 (1 BvL 10/12).

The benefit is administered by the Bundesagentur für Arbeit (Federal Employment Agency) together with the urban districts and rural districts; they carry out these tasks jointly within the Jobcenter as joint institutions or — in the case of approved municipal providers (so-called Optionskommunen, § 6a SGB II) — alone. Additional rules are set out in the regulations on calculating the standard needs (RBEG), on additional needs, and in locality-specific guidelines on housing costs. Further official information is available at arbeitsagentur.de and bmas.de.

Under § 7 Abs. 1 SGB II, persons are entitled to Bürgergeld if they cumulatively satisfy the following requirements:

• They are capable of work within the meaning of § 8 SGB II — that is, they are able to work for at least three hours a day under the customary conditions of the general labour market.
• They have reached the age of 15 and have not yet reached the standard retirement age under the statutory pension scheme (currently 66, rising in stages to 67).
• They are in need of assistance: they are unable to secure their livelihood, or unable to do so adequately, from their own income, assets or claims against third parties (§ 9 SGB II).
• Their habitual residence is in the Federal Republic of Germany.

Together with the person capable of work, a spouse, registered civil partner, partner in a marriage-like community and unmarried minor children living in the household form a household community of need (Bedarfsgemeinschaft, § 7 Abs. 3 SGB II). Members of this community who are not capable of work (e.g. young children) then receive Sozialgeld under §§ 19, 23 SGB II at the same level.

Excluded in particular are trainees whose training is in principle eligible for support under BAföG or vocational training assistance (§ 7 Abs. 5 SGB II), as well as recipients of an old-age pension. Students and trainees only receive benefits under § 27 SGB II in cases of particular hardship or for additional needs.

The monthly standard need (Regelbedarf) covers the necessary cost of living, with the exception of housing and heating costs. It is updated each year on 1 January (§ 20 Abs. 5 SGB II in conjunction with the RBEG). For 2026, the following categories are expected to apply (please verify the current values at arbeitsagentur.de — 2026 figures pending, hence {?} below):

Note: For 2024 and 2025, the standard needs were updated by approximately 12% and 0% respectively; for 2026, a rather moderate adjustment is expected under the revised updating formula (§ 28a SGB XII). Please update with the official value before publication (verify at arbeitsagentur.de — 2026 figure pending).

In addition to the standard need, the Jobcenter covers the costs of accommodation and heating (Kosten der Unterkunft und Heizung, KdU) under § 22 SGB II, insofar as they are appropriate. Unlike with Wohngeld, the actual rental costs are reimbursed — capped by an appropriateness threshold which each municipality sets for its area of responsibility on the basis of a coherent concept.

Three components are taken into account:

• Net cold rent — capped by a municipal upper rent limit, graduated by household size (e.g. 50 m² for a single person, 60 m² for a two-person household, a further 15 m² per additional person).
• Cold ancillary costs such as water, refuse collection, building cleaning and property tax.
• Heating costs — at actual amount, reviewed against the nationwide Heizspiegel (heating cost index); unusually high heating costs may be capped on a municipality-specific basis.

The Bürgergeld-Gesetz introduced a two-year grace period (Karenzzeit, § 22 Abs. 1 Satz 2 SGB II): during the first twelve months of receipt, the actual housing costs are covered without an appropriateness review, provided there is no manifest inappropriateness. Only after the grace period ends will the Jobcenter require, where applicable, that costs be reduced (by moving, subletting or renegotiating the rent), generally within six months.

Certain life situations require higher expenditure than the standard need covers. § 21 SGB II provides for additional needs (Mehrbedarfe), paid on top of the standard need:

• Pregnant women from the 13th week of pregnancy: 17% of the applicable standard need (§ 21 Abs. 2 SGB II).
• Single parents: graduated between 12% and 60% of the standard need, depending on the number and ages of the children, but no more than 60% of the standard need of the applicable category (§ 21 Abs. 3 SGB II).
• People with disabilities who receive benefits for participation in working life or other assistance for school or vocational training: 35% of the standard need (§ 21 Abs. 4 SGB II).
• Costly diet for medical reasons (e.g. coeliac disease, severe renal insufficiency): in an appropriate amount on the basis of a medical certificate, guided by the recommendations of the Deutscher Verein (§ 21 Abs. 5 SGB II).
• Decentralised hot-water supply where hot water is not generated via the heating system (§ 21 Abs. 7 SGB II): a flat rate depending on age, currently between approximately 0.8% and 2.3% of the standard need.
• Other unavoidable ongoing special needs under § 21 Abs. 6 SGB II — e.g. visitation costs for separated parents, hygiene articles in cases of chronic illness.

Together, the additional needs may not exceed the applicable standard need, with the exception of the additional need for a costly diet.

The Bürgergeld-Gesetz significantly raised the asset thresholds and introduced a two-stage system (§ 12 SGB II):

• First year of receipt (grace period): in the first twelve months of receiving benefits, an increased threshold of 40,000 € applies for the applicant and 15,000 € for each additional member of the household community of need (§ 12 Abs. 3 SGB II). Assets above this threshold lead to refusal; below, they are not affected.
• After the grace period: the threshold falls to a basic exemption of 15,000 € per person in the household community of need (§ 12 Abs. 2 SGB II).

Regardless of the grace period, the following are always protected:

• An owner-occupied appropriate flat or an appropriate house (§ 12 Abs. 1 Nr. 5 SGB II).
• Assets serving retirement provision (Riester, Basisrente, occupational pension schemes) and, under certain conditions, further retirement assets.
• Household goods, an appropriate motor vehicle for each person capable of work, and items used in the exercise of one's profession.
• Funeral provision in an appropriate amount.

The grace period — applied simultaneously to housing costs and assets — is one of the central features distinguishing Bürgergeld from the former Arbeitslosengeld II.

Bürgergeld must be actively applied for; payment is not made on the authority's own initiative. The competent body is the Jobcenter at the applicant's place of residence. The application is generally backdated to the first of the month in which it is filed (§ 37 Abs. 2 SGB II) — applying early in the month is therefore harmless, while applying late may result in losing an entire month's entitlement.

Three routes are available:

• Online via jobcenter.digital: the joint portal of the Bundesagentur für Arbeit and the Jobcenter enables initial applications, continuation applications and notifications of changes. Identification is via a BundID account or with an identity card and eID. Available at jobcenter.digital.
• Paper forms: templates (main application 'HA' and the annexes WEP, KdU, EK, VM, KAS, etc.) are available at the Jobcenter and at arbeitsagentur.de. Once signed, they may be submitted by post, by fax or in person.
• In-person consultation: still possible at many Jobcenters, often only by appointment via the service hotline 0800 4 5555 00 (free of charge).

Tip: anyone unable to complete the full application promptly should at least file an informal written claim for benefits (§ 37 SGB II). This secures the entitlement for the current month; the full documentation can be submitted afterwards.

Which documents the Jobcenter requires follows from the general duty of cooperation (§§ 60 ff. SGB I) and from the annexes to the main application. The following documents are usually needed:

• Main application (HA) together with the relevant annexes (WEP for further members of the household community of need, KdU for housing costs, EK for income, VM for assets, KAS for children).
• Identity card or passport; for foreign nationals, a residence permit (for the purpose of checking the exclusion under § 7 Abs. 1 Satz 2 SGB II).
• Tenancy agreement, the most recent rent increase notice, the latest utility bill statement, and the heating cost statement.
• Proof of income for the past three months: payslips, ALG I (unemployment benefit) decision, pension decision, sickness benefit decision, parental allowance decision, child benefit decision, maintenance payments, income from rental property or capital assets.
• Proof of assets: bank and savings account statements for the past three months, life and pension insurance policies, building society savings contracts, securities accounts, land register extracts, vehicle registration document.
• Bank statements from the current accounts of all members of the household community of need for the past three months.
• Birth certificates of all children, marriage certificate, where applicable a divorce decree and maintenance order.
• Proof of health insurance and social security card.
• If pregnant: maternity record (Mutterpass); in case of disability: severely disabled person's pass or notice on the degree of disability.
• For self-employed persons: annex EKS — declaration of income from self-employment, projected for the authorisation period.

Anyone receiving Bürgergeld is required to actively cooperate in ending or reducing their need for assistance (§ 2 SGB II). This is set out in particular in the cooperation agreement (Kooperationsvereinbarung; formerly: integration agreement), concluded under § 15 SGB II between the entitled person and the Jobcenter.

For breaches of duty without good cause — in particular refusing reasonable work or measures, abandoning a measure, or failing to make job-search efforts — the Bürgergeld-Gesetz (§§ 31 ff. SGB II) provides for graduated benefit reductions:

• First breach of duty: reduction of 10% of the standard need for one month.
• Second breach of duty within one year: reduction of 20% of the standard need for two months.
• Third and further breaches of duty: reduction of 30% of the standard need for three months.

For missed appointments (§ 32 SGB II — e.g. an unexcused absence at an arranged appointment), the reduction in each case is 10% for one month.

Benefits for accommodation and heating, as well as Sozialgeld for minor children, are not reduced. A hearing must always be held before any reduction; exceptional hardship can reduce the sanction (§ 31a Abs. 3 SGB II). The Federal Constitutional Court declared sanctions exceeding 30% unconstitutional in its judgment of 5 November 2019 (1 BvL 7/16) — the Bürgergeld-Gesetz reflects these requirements.

From the experience of social welfare associations and unemployment counselling services, several typical grounds for refusal can be identified:

• Lack of capacity to work: anyone unable to work for at least three hours a day for health reasons (§ 8 SGB II) does not receive Bürgergeld but rather basic security in the event of reduced earning capacity under SGB XII.
• Assets above the threshold: 40,000 € during the grace period or 15,000 € per person thereafter (§ 12 SGB II). The existence of a 'forgotten' savings book or securities account regularly leads to recovery of benefits.
• Income covering the need: if employment income, ALG I, pension, maintenance or child benefit covers the total need of the household community of need, there is no need for assistance (§ 9 SGB II).
• Receipt of an old-age pension or having reached the standard retirement age.
• Status as a trainee with eligibility in principle for BAföG or BAB support (§ 7 Abs. 5 SGB II) — exceptions are possible only in cases of particular hardship.
• No habitual residence in Germany or exclusion from benefits for certain EU citizens during the first three months of stay (§ 7 Abs. 1 Satz 2 SGB II).
• Incomplete cooperation: if documents are missing despite a written request with a deadline, benefits may be denied under § 66 SGB I.

Many of these refusals can be corrected through the objection procedure, for example by submitting missing documents, presenting a medical opinion, or providing clarifying explanations regarding the household community of need.

An objection (Widerspruch) is admissible against any Bürgergeld decision — be it a refusal, an award that is too low, a sanction or a recovery claim. The deadline is one month from notification of the decision (§ 84 SGG); if the legal remedies notice is incorrect or missing, the period extends to one year.

The objection must be lodged with the Jobcenter in writing or for the record. E-mail is not necessarily sufficient — the safest options are submission by letter, fax or via the e-mail inbox at jobcenter.digital. A statement of reasons is not strictly required, but is strongly recommended, particularly if new documents are to be submitted.

If the objection is rejected, recourse to the Sozialgericht (Social Court) remains open (§ 51 Abs. 1 Nr. 4 SGG). The deadline for filing a claim is again one month from service of the objection decision (§ 87 SGG). Proceedings before the Social Court are free of court costs; an action may be brought without a lawyer, although it is often advisable to seek advice from a social welfare association (e.g. SoVD, VdK), an unemployment counselling service, a tenants' association or a lawyer.

In urgent cases — imminent homelessness, lack of funds for food — interim relief under § 86b SGG may also be sought; the Social Court will then often decide in expedited proceedings within a few days.

Bürgergeld and Wohngeld (housing benefit) are mutually exclusive. Anyone receiving Bürgergeld does not receive Wohngeld under § 7 Abs. 1 WoGG — and conversely, the Jobcenter already covers the appropriate costs of accommodation and heating as part of Bürgergeld. Double funding is to be avoided.

For low-income households, it is nevertheless worth asking which route is more advantageous:

• Wohngeld is more attractive where there is employment income that just covers the cost of living but no longer the housing costs — without the duty of cooperation and cooperation agreement associated with Bürgergeld.
• Bürgergeld is necessary where the total need (standard need + KdU + additional needs) is not covered, even after taking into account employment or pension income, Wohngeld and Kinderzuschlag (child supplement).

Families should first check whether the combination of Wohngeld plus Kinderzuschlag (§ 6a BKGG) would cover the total need — as this constellation avoids switching to SGB II. As part of processing the application, the Jobcenter checks whether there is a prior entitlement to Wohngeld and Kinderzuschlag (§ 12a SGB II) and refers the applicant accordingly where appropriate.

Some groups of people raise typical detailed questions:

• Students: anyone in principle entitled to BAföG receives no Bürgergeld under § 7 Abs. 5 SGB II. Entitlement to additional needs (e.g. pregnancy) remains possible under § 27 SGB II. Students who no longer have a BAföG entitlement because of having exceeded the maximum support period can receive Bürgergeld if they are capable of work.
• Self-employed persons: declaration with annex EKS, with provisional authorisation generally for six months (§ 41a SGB II). After this period ends, the final assessment is made, possibly with recovery or back payment. Operational expenses may be deducted insofar as they are actually incurred and necessary.
• Aufstocker (top-up recipients): anyone in employment whose income does not cover the need receives supplementary Bürgergeld; employment income is taken into account, with the exemptions provided for in § 11b SGB II (see separate section).
• Older persons before the standard retirement age: they receive Bürgergeld but are in many cases exempt from compulsory employment promotion measures. Upon reaching the standard retirement age, they switch to basic security in old age (SGB XII).
• EU citizens: in the first three months of residence, or where the right of residence is solely for the purpose of seeking work, benefits are excluded under § 7 Abs. 1 Satz 2 SGB II. The exclusion does not apply to workers and family members.
• Homeless persons: entitlement also exists without a fixed address; costs for a guesthouse, emergency shelter or homeless accommodation are covered, provided they are appropriate.

The Bürgergeld-Gesetz entered into force on 1 January 2023 (stage 1) and on 1 July 2023 (stage 2, including the so-called cooperation plan course and other measures). The most important changes compared with the former Arbeitslosengeld II ('Hartz IV') are:

• Increase in standard needs on 1 January 2023 by approximately 50 €, followed by a substantial rise on 1 January 2024 (approximately +12% to 563 € in category 1).
• Grace period for housing and assets in the first twelve months (§ 22 Abs. 1, § 12 Abs. 3 SGB II) — actual housing costs without an appropriateness review, asset threshold of 40,000 / 15,000 €.
• Milder sanctions: a maximum reduction of 30% instead of the previous up to 100% (§§ 31 ff. SGB II); abolition of the special tougher rules for those under 25.
• Priority for qualification: vocational further training is supported with an additional Bürgergeld bonus of 75 € per month (§ 16j SGB II) and a further training premium of up to 1,500 € upon successful completion.
• Cooperation agreement instead of integration agreement: a six-month trust period without sanctions, partnership-oriented language, and joint goal-setting (§ 15 SGB II).
• Higher exemptions for employment income: 30% exemption for income between 520 € and 1,000 €; further special rules for pupils and students with side jobs (§ 11b SGB II).
• Abolition of the placement priority: not every job offered must be accepted immediately if a qualification promises more sustainable success.

Critics complain that the reform has been partly rolled back by the Wachstumschancengesetz and subsequent amendments — for example through tightened sanctions for 'total refusers' (a 100% reduction is possible, § 31a Abs. 7 SGB II in the version applicable since 2024). However, the basic orientation of Bürgergeld — grace period, qualification priority, higher standard needs — remains in place.

About a quarter of all Bürgergeld recipients are in employment — so-called Aufstocker (top-up recipients). They work full-time or part-time but earn too little to cover the needs of the household community of need on their own. Typical situations include minimum-wage occupations, part-time work by single parents, and solo self-employed persons in niche occupations.

Employment income is offset against the need, but with substantial employment exemptions under § 11b SGB II:

• A flat-rate basic exemption of 100 € (covering typical work-related expenses).
• 20% exemption for the gross income share between 100 and 520 €.
• 30% exemption for the gross income share between 520 and 1,000 €.
• 10% exemption for the gross income share between 1,000 and 1,200 € (up to 1,500 € in households with minor children).

In concrete terms, this means that someone earning 1,200 € gross retains significantly more in net terms than a non-employed Bürgergeld recipient. Additional more favourable rules apply to trainees, pupils with side jobs and students (e.g. an increased basic exemption for pupil jobs during school holidays, § 11a Abs. 3 SGB II).

Aufstocker retain full access to labour market instruments under §§ 16 ff. SGB II — in particular support for vocational further training, integration subsidies for employers, and the Bürgergeld bonus for qualification measures.

Bürgergeld is generally awarded for an authorisation period of twelve months (§ 41 Abs. 3 SGB II). Where income from self-employment varies or where significant changes are foreseeable in the near future, authorisation is granted provisionally, generally for six months (§ 41a SGB II), with a final assessment following submission of the actual income evidence.

Payment is made monthly in advance to the account specified by the applicant. The first payment date is usually the last working day of the previous month. Anyone without an account can receive payment by clearing payment order; in such cases, opening a fee-free basic account under the Payment Accounts Act (Zahlungskontengesetz) is recommended.

Anyone wishing to continue receiving Bürgergeld after the authorisation period ends must submit a continuation application — ideally two months before expiry, in order to avoid payment gaps. The procedure is significantly simpler than the initial application: as a rule, only the current evidence of income, rent and assets needs to be resubmitted.

Where processing is delayed, the law provides for advance payments under § 42 SGB I and provisional benefits under § 41a SGB II. In acute emergencies (e.g. imminent disconnection of electricity, lack of funds for food), interim relief can also be sought from the Social Court under § 86b SGG.