New job center rules may cost beneficiaries 150 euros per month
The German government has agreed on a new basic support system that includes tightening penalties for individuals who do not cooperate with employment offices. About 5.28 million beneficiaries of Bürgergeld (citizen's allowance) are expected to be affected by these changes when they come into effect.
Under the new rules, there will be no penalty for missing the first appointment with the employment office. However, starting from the second missed appointment, the allowance will be reduced by 30%, which is equivalent to about 150 euros per month. Repeated absences may lead to larger reductions in benefits.
This reform came after disagreements within the government. The objections of Minister of Economy Katrin Reiche and Minister of the Interior Alexander Dobrindt led to a delay in approval, as they warned that some beneficiaries might deliberately miss appointments to avoid penalties. Minister of Labor Beate Bas had previously suggested requiring a personal meeting before completely suspending benefits.
The Ministry of Labor later clarified that beneficiaries should be given the opportunity to justify their behavior, even through a written notice that includes a specific date for a phone call. Those who miss three consecutive appointments face the risk of losing most benefits, while rent coverage continues during the first month. If the refusal continues, payments will be completely stopped, forcing individuals to submit a new application.
Special protection will be provided for individuals suffering from mental disorders. Families will also receive more flexible treatment compared to individuals, as rent payments will continue to be made directly to landlords during the first month to protect children or other dependents.
The reform also targets individuals who refuse to accept suitable jobs. Benefits may be reduced for up to two months, while housing and heating costs will continue to be paid directly to landlords. Additionally, the one-year 'protection' period during which financial assets are not considered will be abolished, with protected amounts determined based on age.
It is expected that cars, personal residences, and retirement savings will remain exempt from asset calculations. The government hopes that these changes will contribute to reinforcing the principle of 'work instead of unemployment,' although experts warn that the amount of financial savings may be limited due to the high costs of employment services.
The law also includes changes affecting Ukrainians arriving in Germany after April 1, 2025, as they will receive Asylbewerberleistungen (asylum seeker benefits), which are about 100 euros less than Bürgergeld. Labor Minister Beate Bass has publicly criticized this change. The reform is expected to be officially approved and come into effect on July 1, 2026.