Einstiegsgeld

The aim is to overcome the need for assistance for recipients of unemployment benefit II (ALG II) who take up self-employment or dependent employment of at least 15 hours per week and thereby end their unemployment.

The start-up allowance can be granted for a period of up to 2 years after starting a business or taking up employment.

The following measures are supported:

• Start-up (alone or in a team)
• Takeover of a business
• Re-starting a business ("second chance")
• Employment subject to social security contributions as an employee

The start-up allowance can also be paid if the need for assistance ceases to exist as a result of or after taking up gainful employment.

Type of support: non-repayable grant (fixed amount financing)

Amount
Usually 50 percent, maximum 100 percent of the standard ALG II benefit.
The amount of the introductory allowance depends on the applicant's previous period of unemployment and the number of dependants. It is determined individually by the case manager at the responsible office.

Duration of receipt

• Maximum of 24 months, whereby the allowance may be paid in shorter approval periods (usually 6 months)
• only for the duration of the employment

If the subsidy is to last longer than 6 months, the subsidy is generally reduced (subsidy degression).

Payment
monthly, at the end of each month

You cannot be granted a legal entitlement to this grant.

NOTE: A combination with other funding programs (e.g. loans) is possible.

for business start-ups:

• Brief description of the business start-up project to explain the business idea (business concept)
• Capital requirement and financing plan
• Turnover and profitability forecast
• Statement from an expert body
• If applicable, further proof of self-employment, e.g. accident insurance, business liability insurance
• Copy of business registration or registration with the tax office for freelancers

additionally for trades requiring a license:

• corresponding permit:

NOTE: You must submit an application for permission to exercise the respective trade before registering your business.

for trades additionally:

• Confirmation of entry in the register of craftsmen or in the register of owners of a business of a craft not requiring a license or a craft-like trade

when taking up employment:

• Copy of the employment contract

Business start-ups and employees (natural persons) are eligible to apply if they

• receive unemployment benefit II and
• were unemployed before taking up gainful employment.

In addition, the following requirements must be met:

• Successful integration into working life cannot be ensured in any other way.
• The level of remuneration and the nature of the activity must not contravene the law or offend common decency.

for business start-ups:

• viable business concept
• self-employed activity is of a full-time nature

in the case of employment subject to social security contributions:

• employed activity of at least 15 hours per week

NOTE: Start-up allowance is an individual grant for the founder. If you are not planning to set up a sole proprietorship but a team, you and/or your partner(s) can apply individually for a start-up grant or other personal support.

Funding is generally excluded for

• if you are already working full-time,
• reaching the age of 65 (from the beginning of the following month, the entitlement to an entry-level allowance expires).

The application is free of charge for you.

However, further costs may arise in connection with setting up a business, for example for

• Registration of a trade,
• permits,
• expert opinion,
• entry in
  • register of craftsmen or
  • List of owners of a business in a craft not requiring a license or a craft-like trade

• First apply for an introductory allowance at your local office.
• You can apply in person, in writing, by telephone or by e-mail.
• The date of application is the date on which you declare your interest in the grant to the responsible office.
• The application forms will be sent to you or given to you in person (forms not currently available online).

Starting a business

If you would like to set up a company, then draw up a business concept for your project.

• Determine the date on which you want to set up the company and enter this date when registering your business (for freelancers: date of registration with the tax office).

NOTE: Your unemployment also ends when you become self-employed.

• Once you have formally established your business, submit the completed form "Antrag auf Gewährung von Einstiegsgeld zur Aufnahme einer selbstständigen Tätigkeit" and the other documents to the office responsible for you.

Taking up employment subject to social security contributions

If you would like to take up employment subject to social insurance contributions, submit the following documents to the office responsible for you as soon as possible:

• completed form "Application for entry-level allowance to take up employment subject to social insurance contributions" and
• employment contract stating the number of hours per week and the salary.

If your application is rejected, you can lodge an appeal within one month of receiving the rejection notice.

Time of application
You must submit the application before concluding the employment contract and before the start of the employment relationship.
The date on which you collect the application forms or have them sent to you is deemed to be the date of application.

Submission deadline
There is no deadline for submitting the application form and other documents. However, your application can only be processed once you have submitted all the required documents

• the local employment agency (employment office) or
• the locally responsible job center (joint institution of the federal agency and the local authority or the authorized local authority)
• the authorized municipal provider