Start-up money; application

Description

In order to overcome the need for assistance, persons eligible for benefits who meet the requirements for receiving unemployment benefit II can apply for an introductory allowance for a limited period of time if they take up gainful employment that is subject to social insurance contributions or are self-employed, if this is necessary for integration into the general labor market. There is no legal entitlement to the introductory allowance; the regulation is a discretionary provision, so that it must be decided on a case-by-case basis whether this type of support appears to be suitable as a time-limited and targeted measure for taking up gainful employment. In addition to the tax-free allowance that must be taken into account when calculating income from gainful employment, the introductory allowance significantly increases total disposable income compared to unemployment benefit II. It thus creates an additional incentive for jobseekers to accept lower-paid work or to become self-employed.

When determining the amount of the starter allowance, the previous duration of unemployment, the size of the respective needs group (family component), and the amount of the relevant standard need are also to be taken into account appropriately according to dutiful discretion. The basic amount of the starter allowance may not exceed 50% of the relevant standard need. The basic amount is to be increased by 10% of the standard need for each additional member of the needs group. Beneficiaries who have already been unemployed for 2 years or more or who have serious placement obstacles may also receive increased support. In total, the total monthly amount of the allowance amounts to a maximum of 100 % of the standard need in accordance with the stipulations of the introductory allowance ordinance.

The introductory allowance is paid as a subsidy for a maximum of 24 months, insofar as gainful employment exists for this period.

See also Self-employment, Subsidies upon commencement ofemployment

§§ 16b Social Security Code II, Ordinance on the assessment of entry-level benefits

Job center

www.arbeitsagentur.de/

Remedy

Widerspruchsverfahren vor Sozialgerichtsprozess

Objection, social court action

Status: 28.02.2022

Responsible for editing: Bayerisches Staatsministerium für Familie, Arbeit und Soziales

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