Einstiegsgeld beantragen

Applying for an introductory allowance in accordance with § 16b of the Second Book of the Social Code/SGB II

The aim is to overcome and not reduce the need for assistance for recipients of citizen's allowance who take up self-employment or dependent employment of at least 15 hours per week and thereby end their unemployment

The introductory allowance can be granted for a maximum of 24 months after starting a business or taking up gainful employment.

The following measures are subsidised:

• 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 due to or after taking up gainful employment.

Conditions

Type of funding
Non-repayable grant (fixed amount funding)

Amount
usually 50 per cent of the standard benefit of the citizen's allowance

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 respective integration specialist / case manager at the responsible office.

Duration of receipt

• maximum of 24 months, whereby the allowance may be paid in shorter authorisation periods (usually six months)
• only for the duration of employment / self-employment

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

Payment
monthly, at the end of each month

Note: A combination with other funding programmes (e.g. loans) is possible. You cannot be granted a legal entitlement to this subsidy.

*) In order to remain comprehensible, we limit ourselves to the generalised personal designations, they always refer to each gender - ed.

For business start-ups:

• meaningful 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
• Liquidity plan

For trades requiring a licence, additionally

• appropriate licence

Before registering your business, you must submit an application for a licence to exercise the respective trade.

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 licence or a trade similar to a craft

If taking up employment:

• Copy of the employment contract

Business founders and employees (natural persons) who

• Receive a citizen's allowance 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 work must not contravene the law or offend common decency.

When setting up a business

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

In the case of employment subject to social security contributions

• employment of at least 15 hours per week

Start-up allowance is an individual subsidy for the founder. If you are planning to set up a team rather than a sole proprietorship, you and / or your partner(s) can apply for an individual start-up grant or other personalised support.

Funding is generally excluded for

• already working full-time in your main occupation,
• You have reached the age of 65 (from the beginning of the following month the entitlement to a start-up allowance expires).

Application: none

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

• Registration of a trade,
• Licences,
• expert opinion,
• Entry in the Register of Craftsmen,
• Register of owners of a business in a craft that does not require a licence or a trade similar to a craft.

• Firstly, apply for an introductory allowance from your local authority.
• You can submit the application in person, in writing, by telephone, by e-mail or online.
• 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 (online application possible).

Setting up 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 business and enter this date when registering your business (for freelancers: date of registration with the tax office).

Your unemployment will also end when you become self-employed.

• Once you have formally set up your business, submit the completed form "Application for start-up allowance for self-employment" 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
• An 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: before conclusion of the employment contract and before the start of the employment relationship

Deadline: none