There are two types of state support for unemployment: Unemployment benefit I (ALG I) is the main benefit of unemployment insurance and is intended to help prevent financial emergencies in the event of unemployment. The unemployment benefit II (also ALG 2, ALG II) – mostly called Hartz IV – is the basic security for employable people in need of help called “Hartz IV”.
Unemployment benefit I, also called ALG 1 or ALG for short, is the main benefit of unemployment insurance. It is intended to help prevent financial emergencies in the event of unemployment and is paid for three to at most 24 months, depending on the qualifying period and age.
Unemployment then exists
- if there is actually no employment or employment of less than 15 hours per week (unemployment),
- when actively looking for socially insured employment to end unemployment (personal efforts),
- if placement efforts of the employment agency can and should be followed (availability).
The amount of unemployment benefit is based on the wages received in the 12 months prior to the application. Unemployed people with children receive 67%, unemployed people without children receive 60% of a flat-rate net salary. The maximum duration of receiving unemployment benefit I varies from 6 to 12 months. For older workers over 50 years of age, the reference period increases to up to 24 months.
Sources: https://www.dgb.de/themen/++co++4f82db0c-fca4-11df-7cf4-00188b4dc422
https://www.bmas.de/DE/Themen/Arbeitsmarkt/Arbeitslosengeld/arbeitslosengeld.html
Unemployment benefit II (ALG II) is the lowest social network that is designed to ensure the livelihood of everyone who can work. Colloquially, the ALG II – or ALG 2 – “Hartz IV” is called.
ALG II is provided to all persons who are at least 15 years old and have not yet reached the retirement age if they are employable and in need of help. If a person fulfills these conditions, the partner and the children also receive benefits – even if they are not able to work themselves. Only persons who are habitually resident in the Federal Republic of Germany are entitled to benefits. Special restrictions apply to people without a German passport and to people undergoing training. Union citizens who came to Germany to look for work are not entitled to unemployment benefit II in the first three months. The situation is different if EU citizens have been employed in Germany for more than half a year or one year.
Sources: https://www.dgb.de/themen/++co++4f82db0c-fca4-11df-7cf4-00188b4dc422
https://www.bmas.de/DE/Themen/Arbeitsmarkt/Arbeitslosengeld/arbeitslosengeld.html
Documents for download
Bundesagentur für Arbeit, Merkblatt 1:
https://www.arbeitsagentur.de/datei/merkblatt-fuer-arbeitslose_ba015368.pdf
DGB, Hartz IV, Tipps und Hilfe vom DGB:
https://dgb-shop.bw-h.de/media/products/0230958001581059788.pdf?MODsid=nepaf63jncdrimb1990adrcob7
Further information
Bundesagentur für Arbeit, Merkblatt 1:
https://www.arbeitsagentur.de/datei/merkblatt-fuer-arbeitslose_ba015368.pdf
Bundesagentur für Arbeit, Beantragung von Arbeitslosengeld:
https://www.arbeitsagentur.de/arbeitslosengeld/so-beantragen-sie-arbeitslosengeld
DGB, Hartz IV, Tipps und Hilfe vom DGB:
https://dgb-shop.bw-h.de/media/products/0230958001581059788.pdf?MODsid=nepaf63jncdrimb1990adrcob7