Top up unemployment benefit 1 – tips on social security for alg 1 recipients

Those who have worked full time and then become unemployed are often faced with financial problems. This is because unemployment benefit 1 only covers 60 percent of their last net earnings. Every tenth person takes advantage of the opportunity to top up unemployment benefit 1. What entitlements do the unemployed have and how does the application process work in order to be able to top up unemployment benefit 1?? The guidebook explains the details.

Who is entitled to ALG 1?

Who becomes unemployed, may be entitled to unemployment benefit 1. The prerequisite is that the last job was a gainful activity subject to compulsory insurance and thus has paid into the unemployment insurance fund. Contributions must have been paid in the last two years Paid for at least twelve months Have been paid in order to be eligible for unemployment benefit 1. Replacement periods such as military service, maternity leave, parental leave, sick pay as well as voluntary service are included in the calculation. Those who want to receive unemployment benefit 1 do not have to sit idly at home and wait for a job to come along. It is allowed, to work up to a maximum of 15 hours a week. Unemployment must be reported in person, no later than the first day of unemployment. If the end of the job is foreseeable, it is advisable to file a declaration as "jobseeker.

he has worked full time and then becomes unemployed, often faces financial problems. This is because unemployment benefit 1 only covers 60 percent of the last net earnings. Every tenth person takes the opportunity to top up unemployment benefit 1.

The agency can impose a blocking period of up to 12 weeks for unemployment benefit 1. This can happen if the employment relationship was arbitrarily terminated on the part of the employee or due to inappropriate behavior the Termination by the employer occurred. A blocking period is still imposed if a job offered by the employment agency is rejected, measures for professional integration are refused or the notification is "job-seeking" Too late. If a recipient of unemployment benefit 1 does not make sufficient efforts to find a new job during the period of entitlement, a block may also be imposed. Termination agreement and severance payments cause blocking periods. If the Termination for family reasons given, for example, because after the wedding the move to the spouse in another city, there is no blocking period. Appropriate proof must be submitted to the employment agency. The entitlement to unemployment benefit 1 also applies if the employee was employed for at least six months within the two years preceding the date of unemployment registration. It also applies to jobs that were limited to a maximum of ten weeks and if the gross wage 32.340 Euro has not been exceeded. The respective facts are to be proven, the Regulation of shortened entitlement However, this only applies until the end of 2018.

How much is ALG 1 and how is it made up??

There is no lump sum for unemployment benefit 1. The The amount of the benefit is based on the last salary subject to contributions, the Income tax bracket but also the Number of children. These factors are used to calculate a daily benefit rate, which is paid out as a monthly amount. A full calendar month is considered to be 30 days in each case. As a rule, unemployment benefit 1 amounts to 60 percent of the last net earnings. If there is a child in the community of need for whom child benefit is received, the amount is 67 percent of the original net salary.

Case study:

An unmarried, childless employee with tax class I and an average gross wage of 2000 euros per month, receives unemployment benefit 1 of 817.50 euros. Unemployment benefit 1 is composed as follows:

Average monthly gross salary X 12/365 = daily assessment salary of 65,75 Euro

Individual itemsAmount in Euro
Wage tax 6,18
Solidarity surcharge 0,34
SV flat rate (21 percent) 13,81
Daily net pay 45,42
Gross wage (60 percent) as a daily benefit supplement 27,25
unemployment benefit for full months (daily benefit rate, gross wage for 30 days) 817,50

With the same gross salary in tax class III and one child, the employee in the example would receive unemployment benefits of 1042.50 euros. The maximum daily assessment wage is 216.67 euros. It can be seen from the case example that just in the case of low and medium income the Unemployment benefit 1 is not sufficient to cover living expenses. Topping up unemployment benefit 1 is then the only alternative that remains until a new job is found.

Which assets are taken into account for ALG 1?

Savings, stocks, real estate, income from rentals and leases – the list of possible assets is long. However the assets do not play a role in unemployment benefit 1. In contrast to unemployment benefit 2, this is a form of risk insurance. In principle, this works like car insurance or household insurance. Contributions are paid during the period of employment; if a claim occurs, the insurance company pays the costs.

How long is the entitlement to ALG 1?

In order to be able to top up unemployment benefit 1, it must be clear how long this benefit can be received. The On the one hand, the duration of the payment depends on how long an employment relationship existed as an employee and at what age the unemployment occurred. The qualifying period is fulfilled if there has been a period of employment subject to compulsory insurance of twelve months within a framework period of two years. Unemployment benefit 1 is then paid for six months. Who within the last five years for longer than twelve months employs was, can have an Entitlement of up to one year have. Under 50 years of age, unemployment benefit 1 is paid for a maximum of one year. Unemployed persons over the age of 50 can fall back on a longer period of entitlement; from the age of 58, unemployment benefit 1 is paid for a maximum of 24 months. Who shortly before the age of 58. If a person is about to reach his or her 60th birthday, he or she can delay his or her application somewhat and thus receive unemployment benefit 1 for 24 months instead of 18 months. An extension is possible if an entitlement to unemployment benefit 1 has been acquired but not fully exhausted in the last five years. In this case, the unused balance can be transferred. However, a maximum of up to the number of time allowed. After five years, the remaining entitlement is forfeited.

Other forms of ALG 1

What other income replacement benefits are available?

Partial unemployment benefit
Partial unemployment benefit represents an insurance benefit that can be claimed by employees who are are employed in several jobs. If a job subject to compulsory insurance ceases to exist, partial unemployment will occur.

Transitional allowance
If an employee is undergoing long-term medical treatment or rehabilitation measure is located, it is possible under the Ninth Book of the Social Code, Chapter 6, to claim a compensation for loss of earnings can be claimed, to compensate for the loss of earnings. Transitional allowance must be applied for separately and is only paid once the employer’s continued payment of remuneration has ended, usually after six weeks. The contributions to the social insurance are paid by the pension insurance institution during the receipt of transitional allowance. Transitional benefits are only paid if a patient received income, sickness benefit, unemployment benefit or injury benefit immediately prior to a rehabilitation measure.

Insolvency allowance
Employers who can no longer meet their payment obligations must declare insolvency. A precarious situation for employees, because their wages are not paid at all or only in part. In order to replace the missing salary, the employment agency steps in with insolvency benefits. This is a one-time payment, which can be paid as soon as the employer’s insolvency proceedings are opened. Paid out outstanding wages for the last three months. This is the case when the employer can no longer pay his debts or does not do anything to continue his operation. The application for insolvency benefits must be submitted to the Employment Agency no later than two months after the proceedings have been opened.

short-time allowance, seasonal short-time allowance
If there are good reasons for a company to reduce the usual working hours, employees can receive short-time allowance in order to cover their associated partially compensate for loss of earnings. The aim of this measure is to ensure that the employees remain in the company. Cyclical short-time allowance is paid when a company reduces working hours for economic reasons or an unforeseen event occurs. Short-time allowance can be drawn for a maximum of twelve months. Seasonal short-time allowance mostly applies to the construction industry, when certain work cannot be carried out due to bad weather conditions. Transfer short-time allowance is paid to prevent layoffs in the event of internal company restructuring measures. Short-time allowance is based on the loss of net salary during the entitlement period. The maximum period of entitlement is twelve months; interruptions are possible.

If there are good reasons for a company to reduce the usual working hours, employees can receive short-time allowance to partially compensate for their associated loss of earnings.

Top up unemployment benefit 1

How can the unemployment benefit be topped up??

Low-income employees in particular have problems meeting their living expenses with unemployment benefit 1. To avoid financial hardship, unemployment benefit 1 can be topped up. If this case occurs, the Top up with Hartz 4 benefits from the job center. According to statistics from the Federal Employment Agency, in 2015 about 10 percent of the unemployed had to supplement their unemployment benefit 1 with these additional benefits. It is also possible to use the child supplement, as the two benefits are compatible with each other. Child supplement is paid in addition to the child allowance. However, an income limit must be observed. With the child supplement, a top-up can only be granted if the income is at least 900 euros. For single parents, the limit is 600 euros. In this case, unemployment benefit 1 cannot be supplemented with the child supplement. In the case of unemployment benefit 2, it is not granted in any case. Unemployment benefit 1 can be topped up by an additional housing allowance in order to avoid needing assistance.

In order to be able to top up unemployment benefit 1, an unemployed person must himself or herself. Because the job center does not automatically grant additional benefits if a calculation is low. For the top-up a Application for unemployment benefit 2 at the responsible job center necessary. A claim exists if a single person has less than 1200 euros gross available and amounts to 1500 euros if at least one child lives in the household. The exact amount results from an individual calculation.

What are the requirements for a top-up??

According to Social Security Code 2 § 11 and § 11b, employed persons have a Entitlement to basic benefits.

However, a distinction must be made between

  • the standard need
  • expenses for accommodation and heating
  • a possible additional need
  • and other one-time benefits such as initial equipment for newborns, purchases for moving into a new apartment, support for a driver’s license or the start of an apprenticeship

The standard requirement has a Fixed lower limit of 416 euros For a single person as well as 374 euros per person in a community of need. Children’s needs are graduated according to age. For children under six, it is 240 euros; from six to under 14, 296 euros; and for young people from 14 to 18, 316 euros.

Young adults who live in the parental home, are under 25 and are not gainfully employed, have a standard need of 332 euros per month. Additional needs are granted to expectant mothers, disabled persons or chronically ill persons. Appropriate proofs must be submitted. When topping up unemployment benefit 1, the costs for accommodation and heating are also taken into account. This means that anyone who has less than 1200 euros per month as a single person and less than 1500 euros per month with a child should have it checked whether it is possible to top up unemployment benefit 1.

How the amount of the top-up is determined?

Anyone who wants to top up their unemployment benefit 1 must go to the job center. There Basic needs determined for all persons living in the household. The existing income is offset against the amount necessary for the basic need.

In order to be able to top up unemployment benefit 1, all existing income is taken as a basis for the calculation.

  • unemployment benefit 1
  • Tax refunds
  • Maintenance payments
  • Child benefit
  • Income from capital
  • Interest
  • Income from rentals
  • Homeowner’s allowance
  • Lottery winnings

Not taken into account

  • Basic pensions according to the Federal Pension Act
  • Care allowance in educational use
  • Blind person’s allowance
  • Special allowances such as emergency aid.

The following expenses are deductible

  • Taxes payable on income
  • Social security contributions
  • Advertising expenses
  • insurances required by law such as motor vehicle liability insurance
  • Other private insurances

For income from gainful employment, for example from a side job permitted in addition to unemployment benefit 1 of a maximum of 15 hours, the first 100 euros are not counted (basic allowance). 20 percent of the gross income above 100 and below 1000 euros remain free of charge. Everything above this up to the upper earnings limit of 1200 and 1500 euros is not counted at 10 percent.

The supplement is calculated on the basis of the individual situation. Under certain circumstances, it may make more sense to rely on housing benefit and child supplement instead of drawing benefits from the job center. Last but not least, as there are also obligations associated with it, such as the integration agreement. Those affected should calculate for themselves which option is more favorable for them.

Financing if the top-up is not paid

How can a loan cover the financing of living expenses?

Under certain circumstances, the supplement may take some time to be granted, or the amount may not be quite as large as originally expected. If a major household purchase is pending or a child’s school trip, it is important to be financially liquid. An uncomplicated instant loan from Vexcash helps to close the hole in your wallet in the short term. Between 100 and 3000 euros are granted without bureaucracy, the repayment modalities are fair and flexible between one and six months.

Special features

What regulations apply with regard to the top-up in the case of receipt of care or sickness benefit?

If nursing care is required, the benefits of nursing care insurance apply. Long-term care allowance is a social calculation that includes is not included in the calculation of income. If the job center wants to credit the care allowance, an objection must be filed immediately. In the event of illness, recipients of unemployment benefit 1 continue to receive benefits in full for six weeks, after which sickness benefit is paid. As this is hardly sufficient, an application must be made to top up unemployment benefit 1.

Which regulations apply with regard to the top-up in the case of receipt of widow’s pension?

How additional income is taken into account in the case of unemployment benefit 1 is governed by § 141 SGB III. Widow’s pension does not fall into the category of chargeable income, since it is not based on a personal effort of the unemployed person. A claim to unemployment benefit 1 therefore exists independently of a widow’s pension. Unemployment benefit 1 is offset against the widow’s pension, as it counts as income in lieu of income.

Which regulations apply with regard to the top-up as a freelancer??

For freelancers and self-employed persons, the income basis is the profit. The top-up is not possible for this group, as they do not fall into the category of those entitled to benefits. Self-employed persons who, however, earn too little, can supplement their income with unemployment benefit 2. If someone wants to become self-employed while receiving unemployment benefit 1, the so-called start-up subsidy can be granted. For this, the business idea must be subjected to a viability test. Founders then receive a subsidy in the amount of their monthly unemployment benefit 1 as well as a social security lump sum of 300 euros for a period of half a year. Start-up entrepreneurs should also consider some tax tips.

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