Unemployment bonus in Germany. Benefits in Germany. Citizens’ Income (Bürgergeld) recipients should start working as soon as possible. To encourage them, the Federal Cabinet introduced a plan called start-up funding. Former long-term unemployed people can get 1,000 euros if they stay in a job that supports them for at least one year. However, similar bonuses already exist, with up to 1,800 euros available. Still, it’s unclear if these measures actually help.
Citizens’ Income Program Offers Additional Bonuses for the Unemployed
The first option from the Jobcentre is the Starter Allowance, which was already available before the Citizens’ Allowance was introduced. This applies to cases where someone has a potential job but the salary is only at or slightly above the Citizens’ Allowance level. The bonus is meant to make the job worthwhile. To qualify, the position must offer a realistic chance of becoming financially independent from government support. This helps encourage a move towards self-sufficiency.
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The bonus amount for the Starter Allowance isn’t fixed and varies based on each recipient’s personal situation. According to the Federal Employment Agency, factors like how long someone has been unemployed, their job prospects, and their living situation (such as having a family or living alone) all play a role in determining the amount. This information was reported by Merkur.de.
Beneficiaries Eligible for Up to 1,800 Euros in Continuing Education Allowance
With the Citizens’ Income reform, the government coalition introduced “Continuous Training Money.” This benefit provides an additional €150 per month for those retraining in a recognized field, adding up to €1,800 annually. This allowance does not reduce other benefits. If former unemployed individuals complete their training and pass the intermediate and final exams, they receive a bonus: €1,000 for passing the intermediate exam and €1,500 for the final exam, with no associated fees.
However, there are doubts about the impact of these bonus payments. “These payments and bonuses are not the main factor in the significant shift from citizen’s income to employment,” said Bernd Fitzenberger, director of the Institute for Labor Market and Occupational Research (IAB), in an interview with Wirtschaftswoche.