The loss of a job usually means a big financial hit at first. With the 165-Euro-Job there is a possibility to top up the unemployment benefit I. So that you do not lose any entitlements, you must follow a few rules.
What is a 165-Euro-Job?
The term is a little misleading: The 165 euros are not the maximum earnings limit for a part-time job during unemployment, but the maximum earnings limit for a part-time job during unemployment Allowance. If you earn extra money on top of your unemployment benefit I, your net income will be deducted from your unemployment benefit – except for the 165 euros.
- If you earn, for example, 450 euros in a part-time job, 285 euros will be deducted from your unemployment benefit.
- But if you earn only 165 Euro or less, nothing will be deducted from your unemployment benefit.
You can therefore have a maximum of 165 euros more at your disposal than with your regular unemployment benefit I – for possible exceptions see below. The regulation applies to a job subject to social insurance as well as to a mini-job.
165-euro job: How many hours can I work??
There is no concrete maximum earnings limit for a part-time job parallel to unemployment benefit I. So it doesn’t matter if you’re paid the minimum wage there or more.
However, it is important to note the maximum number of hours: As long as you have less than 15 hours per week your entitlement to unemployment benefits remains intact.
But as soon as you per week exactly 15 hours or more work, you lose your entitlement to unemployment benefits. You are then quasi no longer considered unemployed. If the employment agency learns about it with a delay, you may even have to make repayments.
By this maximum number of hours is of course also your possible extra earnings indirectly limited.
What are the exceptions to the allowance?
Work-related expenses and side jobs that you already had before you became unemployed can lead to the fact that more than 165 euros remain free of imputation from the additional income.
You have to travel to your part-time job by car, bus or train? The costs for this – or a mileage allowance if you drive yourself – can be declared to the employment agency as income-related expenses. Provided, of course, that you don’t get reimbursed by your employer. Your tax-free amount increases by this amount. With 20 euro Werbkosten per month the tax-free amount would be thus 185 euro. Of course, this includes other expenses that you necessarily incur in connection with your job.
You already had a side job, before you have lost your main job subject to social insurance contributions? Even then, your allowance for additional income to unemployment benefits can be more than 165 euros. In this case, it is based on your average additional income in the last twelve months before becoming unemployed.
Example: Until now you have always earned 200 euros a month in your part-time job. You can continue to do this even while unemployed; the 200 euros will remain tax-free and will not be deducted from unemployment benefit I.
If you earned less than 165 euros per month in your previous part-time job, the tax-free amount is still 165 euros and does not decrease.
This applies to secondary employment with less than 15 hours per week, which you have received in the last 18 months before unemployment benefit at least twelve months for a long time in addition to your main job. Self-employed activities or those as an assisting family member – for example in agriculture – are also taken into account if they meet the requirements.
What info about the side job the employment agency needs?
A 165-Euro-Job is in principle gladly seen by the employment agency, since the everyday life remains thereby regulated and the activity can serve as preparation for a new entrance into the occupation. Important: The side job has to be reported to the employment agency, at the latest when the activity begins. You are obliged to do so. You can use the digital service of the employment agency for this purpose.
Your employer must also certify the secondary income to the employment agency. You can download the form you need for this at the employment agency. If you are self-employed in your part-time job, you fill it out yourself.
With Hartz IV the additional service is regulated differently
Should you remain unemployed longer and at some point unemployment benefit II (Hartz IV) have to apply, other rules apply for secondary earnings.
The amount of time spent on the job is insignificant here, so the 15 hour limit doesn’t apply. The tax-free amount is not 165 Euro, but basically 100 Euro per month. For income above that, there are staggered additional allowances. You can find out more about this at the employment agency or the job center.