As soon as you know that unemployment is imminent, you must register with your employment office to look for work. In the event that older employees lose their jobs, they are entitled to the insurance benefit unemployment benefit I (ALG I), just like younger employees. Even if you had the option to retire with reductions already in place, it may make sense not to do so. Because older unemployed persons are entitled to a longer receipt of ALG I. And in some circumstances, ALG I is higher than a pension with deductions that remain permanent. And every year of receiving ALG I increases the later pension and reduces deductions.
Older unemployed persons receive about 60 percent of their previous net earnings as ALG I. If you are still entitled to child benefit, you are entitled to 67 percent.
Who receives unemployment benefit I?
Unemployed persons have a legal claim to ALG I – regardless of their own assets. Even the income of the spouse does not matter.
ALG I is paid to employees who are
- are unemployed,
- registered as unemployed with the employment agency and
- Have fulfilled the necessary qualifying period (insurance period).
- The latter condition is met by unemployed persons who have been employed for at least twelve months within a framework period of two years – calculated backwards from the day of the application for ALG I – and who are subject to compulsory insurance. Important: Since 1. From January 2020, it is sufficient to provide evidence of twelve months of compulsory insurance in the last 30 months.
How long do you receive ALG I?
If you are at least 50 years old, you can receive ALG I for up to 15 months. Unemployed persons between the ages of 55 and 58 are eligible for benefits for a maximum of 18 months, with a proven 36 months of employment. Who is 58 or older, gets up to 24 months ALG I. If you are about to turn 50., 55. or 58. If you are going to become unemployed on your 55th birthday, you should calculate carefully. If you fear that you will remain without a job for a longer period of time, you should postpone the application for unemployment benefit I until your birthday.
According to Section 118(2) of the Third Social Code, until the employment agency has decided on your claim for unemployment benefit I, you can still determine that your claim should not take effect until a later date – such as your 55th birthday. Birthday. In this case, you will not receive any support until the day of application, but you may be able to receive unemployment benefit I for three or six months longer. Do not forget, however, that you may not be covered by health insurance during the waiting period. In this case, you should therefore also contact your health insurance fund.
Employees receive the ALG I insurance benefit until the end of the month in which they reach the regular retirement age at the latest. This also applies if they are already entitled to an early old-age pension beforehand. There is no withdrawal into early retirement in the case of ALG I.
Equal rules in job placement
Older unemployed people – and this also applies to 64- or 65-year-olds – do not have any special rights when it comes to employment services. Exactly the same rules apply to them as to younger people. In particular, those affected must accept all reasonable work. Because for unemployed persons there is generally no protection of occupation and qualification. In addition, older unemployed people also have to put up with placement in jobs that pay far less than the one they last held.
If you turn down a reasonable job, you may be threatened with at least a temporary suspension of your insurance benefits. This is bitter, especially since in the past there were such regulations for older unemployed people aged 58 and over. but this period has not been extended.
Qualification and retraining
If you want a change or want to change industries, there may be opportunities for qualification through the employment office. You now want to fulfill your childhood dream of becoming a train driver? Then you have a good chance of succeeding with retraining now – even at 50 plus.