The fixed-term employment contract is not extended, the redundancy notice lands on the desk or the employee is simply unable to pursue his or her work for longer: There are many reasons for unemployment.
Unemployment benefit I (or ALG I) is intended to protect employees from financial ruin after losing a job.
The threat of losing one’s job often causes employees concern about their future financial situation. So that the unemployed are not completely destitute, they often have a right to the so-called. Unemployment benefit 1 – at least over a limited period.
Short& just: unemployment benefit 1
Unemployment benefit 1 is paid to employees after losing their job. For this they must have been employed usually within two years for twelve months compulsorily insured.
The reference duration of unemployment pay 1 amounts to in most cases maximally one year. Workers who have reached the age of 50. Employees who have reached the age of 65 can sometimes receive benefits for longer.
Unemployment benefit 1 is calculated on the basis of the gross salary for which contributions to the unemployment insurance scheme were due during the assessment period (usually one year).
But what exactly is unemployment benefit 1 and how is it regulated by law? Which employees are entitled to unemployment benefit 1 and when can the entitlement be suspended?? How long is the payment of unemployment benefit 1? This and more you will learn in our guide.
Unemployment benefit 1: What is it??
What is ALG 1?
The unemployment benefit 1 – or "ALG 1" – is a benefit provided by the German unemployment insurance system. It is paid to workers entering unemployment under certain conditions to provide them with financial security for a limited period of time.
Unemployment benefit 1 is to be distinguished from unemployment benefit 2, which is also known as "ALG 2" or "Hartz 4". The latter is paid for an indefinite period in order to to provide basic security for jobseekers and employees to secure, as far as they cannot ensure this by their own income. However, it must be reapplied for after one year at the latest. To distinguish it from Hartz 4, unemployment benefit 1 is often simply referred to as "unemployment benefit".
Who receives unemployment benefit 1?
In order to be able to receive benefits such as unemployment benefit 1, the legislator generally certain conditions fixed. In the case of unemployment benefit 1, these are as follows:
- The persons concerned are unemployed. This requirement is met if they worked less than 15 hours per week work.
- The employee has to 65. If the unemployed person has not yet reached the age of 18.
- The person concerned must apply in person to the Federal Employment Agency have been registered as unemployed have. This must be done on the first day of unemployment at the latest. However, the notification can also be made if the loss of the job is expected within the next three months.
- The employee must make an independent effort to end his or her unemployment. This also includes the early Registration as a jobseeker with the Federal Employment Agency, which must be done no later than three months before the end of the employment relationship.
- The employees stand the placement efforts been available to the Federal Employment Agency and be willing to accept reasonable employment.
- The qualifying period must have fulfilled. This means that the employee must have been employed subject to compulsory insurance for at least twelve months in the last two years and during that time must have been in the unemployment insurance must have paid.
How long unemployment benefit 1 is paid for?
The period of entitlement to unemployment benefit 1 depends on how long the employee has paid into the unemployment insurance scheme within the last three years has paid into the unemployment insurance scheme and how old he is
How long is the payment of ALG 1?
- If insurance payments have been made for a total of twelve months, for six months paid unemployment benefit 1.
- With 24 months of insurance payments, the entitlement period is as follows for twelve months.
- If an employee is at least 50 years old and has paid into the insurance scheme for 30 months at the same time, he or she is entitled to 15 months receive unemployment benefit 1 for a long time.
- Those who have paid in for 36 months and at the same time have reached the 55. If a person has reached the age of 18, he or she may 18 months receive unemployment benefit 1 for twelve months.
Employees who are younger than 50 years old receive for a maximum of one year Unemployment benefit 1 – even if they have paid into the unemployment insurance for more than 24 months.
Blocking period for unemployment benefit 1: When payment can be suspended
A blocking period from unemployment benefit 1 is always imposed if the employee has been absent from work without sufficient reason for acts in violation of the insurance. Such behavior is z. B. before, if
- signed a termination agreement and has severance pay received was.
- the employee his job terminated himself has.
- the employee has not or not in time registered with the Federal Employment Agency as unemployed or. has registered as a jobseeker.
- No sufficient efforts are recognizable that the employee is trying to find a new job.
- the employee is entitled to the Instructions of the employment agency disregarded, such as z. B. the order of accessibility. This states that the benefit recipient must be reachable once a working day at his or her specified address in order to be able to take note of letter mail. For a longer absence he needs the permission of the authority.
- has not measures for professional integration, which the employment agency imposes, is taken part in or the employee discontinues.
However, the decision as to whether there is a sufficiently important reason for a self-termination is made by the Employment Agency met in the individual case. If there is a dispute between the employee and the employment agency in this regard, the court often decides.
Rest period of unemployment benefit 1
In addition to the blocking period a rest period the period of unemployment in which unemployment benefit 1 is not paid also occurs. The difference is that during the rest period not only the payment but also the entitlement to the benefit is suspended. Therefore has a rest period no reduction of the entitlement period to the consequence.
A rest period is imposed if the employee receives other social benefits such as:
- Wage replacement benefits, e. B. maternity allowance, sickness allowance, injury allowance, transitional allowance
- Reduced earning capacity pension
- old-age pension
- Vocational training allowance for the unemployed
Entitlement to unemployment benefit 1 is suspended while maternity benefit is being received.
Furthermore, the entitlement to unemployment benefit 1 is also suspended if an unemployed person from their terminated employment relationship still receives remuneration for work or vacation pay.
However, this only applies if the remuneration is also actually paid will. If the unemployed person does not receive benefits from his or her former employer despite being entitled to them, unemployment benefit 1 will still be paid to him or her.
What comes after unemployment benefit 1?
Many unemployment benefit 1 recipients wonder what happens when their claim ends and they still have does not have a new job have found.
In this case, the unemployed apply for unemployment benefit 2. This is a social benefit paid by the job center, while unemployment benefit 1 is an insurance benefit from the unemployment insurance fund.
How to calculate unemployment benefit 1?
It is not possible to make a general statement about the amount of unemployment benefit 1. Instead, it is calculated according to a fixed legal regulation calculated. There is no minimum rate for unemployment benefit 1 as a lower limit.
The basis for calculating unemployment benefit 1 is the gross pay for which the unemployed person is entitled within the assessment period an obligation to contribute to unemployment insurance existed. This usually includes one year, can be in special cases, which are defined in § 150 SGB III, but also two years.
This gross pay is divided by the number of calendar days in the assessment period to obtain the assessment remuneration to determine. This is expressed in euros per day. There is an upper limit for the daily assessment pay in the form of a ceiling the income threshold for unemployment insurance. In 2018, this amounts to 213.70 euros per day in the western states and 190.68 euros in the eastern states.
The daily assessment remuneration is a gross figure. From this, the deductions for wage tax and solidarity surcharge must be made next. In addition, the social security lump sum of 21% is to be deducted. In this way there is the daily benefit.
ALG 1: The basis of calculation is the gross salary earned by the employee within one year.
The daily benefit rate is multiplied by a fixed percentage for unemployment benefit 1 of 60 percent, which results in the daily benefit rate results in. Anyone receiving unemployment benefit 1 with a child for whom child benefit is received is subject to an increased benefit rate of 67 percent.
From this amount it has to be calculated at the end, how much the unemployment benefit 1 for one full calendar month is lost. For this purpose, the daily benefit rate is multiplied by a factor of 30, regardless of how many days the calendar month actually has. The resulting product is the unemployment benefit 1 that the unemployed person is paid monthly get.
Unemployment benefit 1: Examples of calculation
In order to illustrate the calculation path explained above, two calculation examples are to be given.
Example 1 (income tax class 1, no children):
The employee Mr. Schmidt earned in the twelve months before he reported his unemployment 1.600 Euro gross, for which there was a duty to contribute to unemployment insurance.
1.600 x 12 = 19.200 Euro (annual gross pay)
19.200 / 365 = 52,60 Euro (daily assessment remuneration)
Wage tax = 3.12 euros per day
Solidarity surcharge (5.5% of 3.12) = 0.17 euros per day
social security lump sum (21 % of 52,60) = 11,05 Euro per day
52,60 – 3,12 – 0,17 – 11,05 = 38,26 Euro (daily benefit payment)
Mr. Schmidt has no children, therefore the following applies to him:
ALG 1 percentage = 60 %
38,26 x 60 % = 22,96 Euro (daily benefit rate)
The benefit rate per day is multiplied by a flat rate of 30, regardless of the actual number of days in the calendar month.
22.96 x 30 = 688.80 euros (monthly payment of unemployment benefit 1)
Mr. Schmidt thus receives 688,80 Euro per month of unemployment benefit 1.
Example 2 (income tax class V, with child)
If the unemployed person has children, the unemployment benefit 1 is calculated with an increased benefit rate.
Mrs. Meier earned before her unemployment like Mr. Schmidt 1.600 Euro per month. Thus, the same applies to them:
annual gross pay = 19.200 Euro
daily assessment wage = 52,60 Euro
In contrast to Mr. Schmidt, it is in the wage tax class V. This results in the following deductions for them:
Wage tax = 9,06 Euro per day
Solidarity surcharge (5,5 % of 9,06) = 0,50 Euro per day
Social security lump sum (21% of 52.60) = 11.05 euros per day
52,60 – 9,06 – 0,50 – 11,05 = 31,99 Euro (daily benefit payment)
Mrs. Meier has a child for whom she receives child benefit, therefore the following applies to her:
ALG 1 percentage = 67 %
31,99 x 67 % = 21,43 Euro (daily benefit rate)
The benefit rate per day is multiplied by 30, regardless of the actual number of days in the calendar month.
21.43 x 30 = 642.90 euros (monthly payment of unemployment benefit 1)
Ms. Meier therefore receives 642.90 euros per month of unemployment benefit 1.
By the way: If you are entitled to unemployment benefit 1 do not calculate yourself you can also use the free unemployment benefit calculator of the Federal Employment Agency.
Unemployment benefit 1 when working abroad
Is there an entitlement to unemployment benefit 1 if the employee has not in Germany worked? If the employment took place in a country of the EU or in Switzerland, such an employment relationship can possibly be taken into account for the entitlement to benefits.
The prerequisite for this, however, is that the unemployed person is registered in Germany and that he or she, prior to unemployment employed in Germany subject to compulsory insurance was. Affected persons should make an appointment with the employment agency for advice on this matter.
If unemployment benefit 1 can be received abroad?
Those who live in the EU or Switzerland are sometimes also entitled to unemployment benefit 1.
It is also possible to receive unemployment benefit 1 if the unemployed person lives abroad – but only if it is by one member state of the EU or by Switzerland acts.
In addition, she must have the nationality of an EU country and be registered as unemployed in Germany. The application for unemployment benefit 1 must be made before leaving the country, at which a waiting period of four weeks must be complied with, must be submitted to the Federal Employment Agency.
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