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SGB II

Grundsicherungsgeld 2026 Germany: New Welfare Rules

On 1 July 2026, Germany renames its main welfare benefit from Bürgergeld to Grundsicherungsgeld. The monthly rate for single adults stays at €563 (no increase in 2026), but the sanctions get tougher, savings limits drop, and the job-placement pressure returns. If you live in Germany on a residence permit and have a low or no income, this affects you directly.

Last updated: Author: Checkalle editorial team

Key Takeaways

  • The German parliament passed the reform on 5 March 2026, with the main changes taking effect 1 July 2026.
  • Monthly rates in 2026 stay at 2025 levels: €563 single adult, €506 per person in couples, €471 / €390 / €357 for children.
  • You can lose up to 100% of your benefit if you persistently refuse reasonable work, up from a 30% cap.
  • The 12-month grace period for assets is gone. Protected savings drop to €5,000 to €15,000 depending on age.

What is Grundsicherungsgeld?

Grundsicherungsgeld is the renamed version of Bürgergeld, which itself replaced Hartz IV (ALG II) back in 2023. It is the basic welfare payment for people of working age (15 to retirement age) who cannot cover their living costs through work, savings or other income. Legally it sits inside SGB II (Social Code, Book Two).

Two things change beyond the name. First, the Vermittlungsvorrang (priority of job placement) returns, meaning the Jobcenter will push you harder toward any reasonable work offer. Second, the sanction levels climb. The Bundestag passed the reform on 5 March 2026 (321 votes to 268), and the Bundesrat approved it on 26 March 2026.

The first stage (sanctions) went into effect on 23 April 2026. Most other rules switch on 1 July 2026. For foreigners the basic eligibility logic is unchanged: a settlement permit, EU long-term residence, family-based permit or recognised refugee status normally qualify. Asylum seekers fall under a separate benefit (AsylbLG).

Monthly rates in 2026: what you get

For 2026 the BMAS declared a freeze (Nullrunde), because the indexation formula would have triggered a small cut. A protective clause in SGB II prevents reductions, so the 2026 numbers match 2025.

Rate bandWhoMonthly 2026
RBS 1Single adult, single parent€563
RBS 2Each adult in a couple€506
RBS 3Adult in institutional care€451
RBS 4Teen 14 to 17 years€471
RBS 5Child 6 to 13 years€390
RBS 6Child 0 to 5 years€357

These amounts cover basic monthly needs only. Rent, heating and special-needs supplements are paid on top.

Who qualifies?

Age 15 to 67

Between 15 and statutory retirement age. Older people get Grundsicherung im Alter via SGB XII.

Able to work

At least 3 hours per day under normal labour-market conditions. Otherwise SGB XII applies.

Need-based

Your income and assets are not enough. The whole household (Bedarfsgemeinschaft) is assessed together.

For foreigners, a settlement permit, EU long-term residence, family-based permit or recognised refugee status normally qualify. Work-based permits (Blue Card, §18 permits) depend on the specifics.

Rent and heating: what the Jobcenter pays

Kosten der Unterkunft (KdU), meaning rent plus heating, are paid on top of the monthly rate, but only at a level the local Jobcenter considers reasonable. Munich and Berlin have higher ceilings than a small town in Saxony.

Cold rent + utilities

Fully covered if the flat sits within the reasonable range.

Heating

Covered at locally typical levels, using the federal Heizspiegel.

Apartment size

1 person 50 m², 2 people 60 m², plus 15 m² per extra person.

If your rent is too high, the Jobcenter gives a Kostensenkungsaufforderung (usually 6 months) to find a cheaper flat. During that window your full rent is still covered. A reasonable private liability insurance is worth keeping even on benefits.

Assets and protected savings from 1 July 2026

The 12-month grace period (€40,000 plus €15,000 per extra person) ends with Grundsicherungsgeld. The new protected amount is smaller and depends on age.

under 30

€5,000 per person

30 to 60

€10,000 per person

61 and older

€15,000 per person

Heads up: Riester pension, an owner-occupied home and a reasonable car stay protected on top. Before moving assets around, consult a free debt counselling service or a social-law lawyer. Hasty transfers can be classified as misuse and lead to claw-backs.

Sanctions in 2026: three steps

A 2019 ruling from the Federal Constitutional Court said cuts above 30% of the monthly rate threaten the existential minimum. That ruling stays in force. But the new law adds a stricter ladder.

Step 1

10% for 1 month

First breach of duty, such as a missed appointment without good reason.

Step 2

30% for 2 months

Repeated breach within one year.

Step 3

up to 100%

Persistent refusal of reasonable work. Rent and heating costs also stop.

People who hit the 100% sanction can sue. The social courts will probably push back. Until that line is clarified: show up to appointments, send sick notes promptly, treat Jobcenter rules as binding paperwork.

How to apply, step by step

Apply at the Jobcenter where you live, in person or via the jobcenter.digital portal. People who need Grundsicherung im Alter (old-age) go to the Sozialamt instead, under SGB XII.

1

Passport or ID

Plus a valid residence permit if applicable.

2

Rental contract

Most recent utility bill and heating cost statement.

3

Bank statements

Last 3 months, all accounts in the household.

4

Income proof

Payslips, sick pay, alimony, child benefit.

5

Asset proof

Savings books, securities, life insurance, vehicle papers.

6

Health insurance

Current membership confirmation from your insurer.

First decision usually comes in 2 to 6 weeks. If you have nothing in the account, ask for a Vorschuss (advance). For an objection (Widerspruch) you have one month, free of charge. People with private health insurance should clarify the status upfront, the Jobcenter assesses contributions separately.

Extra payments (Mehrbedarf)

On top of the basic rate the Jobcenter pays Mehrbedarf supplements for specific life situations. Mention them in your first application; they do not appear automatically.

GroupSupplementApprox. monthly
Pregnant from 13th week17%about €96
Single parent, 1 child under 736%about €203
Disability, in rehab35%about €197
Medical diet (e.g. coeliac)individualwith doctor note
Decentralised hot water2.3%about €13

Self-employed and top-up claimants

Self-employed people can claim Grundsicherungsgeld if their business does not generate enough income to live on. This is common among solo craftspeople, small retailers and freelancers in creative fields. The rules tightened in 2026:

  • You need to show that your business has a realistic chance of becoming self-sufficient.
  • Business expenses get deducted from gross income, but each line is checked.
  • Investments in the business are only counted in narrow limits.

The Anlage EKS form is detailed, and small mistakes cost real money. A specialised social-counselling service or tax advisor pays off. For severe cash crunches a loan with no Schufa check is hard while on benefits, sort the Grundsicherungsgeld application first.

Before vs after 1 July 2026

TopicBefore 1 July 2026From 1 July 2026
NameBürgergeldGrundsicherungsgeld
Rate RBS 1€563€563 (frozen)
Asset grace period12 months, €40k + €15k/persongone
Protected savings€15,000 flat€5k / €10k / €15k by age
Max sanction30%up to 100%
Job placement prioritysoftenedreinstated
Rent grace period12 monthsgone

FAQ

Is Bürgergeld now officially called Grundsicherungsgeld?
Yes. From 1 July 2026 the legal name of the monthly cash benefit under SGB II is Grundsicherungsgeld. Bundestag and Bundesrat both passed it in March 2026. Existing Bürgergeld awards continue automatically; you do not need to file a new application.
How much is the rate for a single adult in 2026?
€563 per month. That is the same as 2025, because the yearly indexation would have triggered a reduction. A protective clause in SGB II prevented that. The next normal adjustment is due for 2027.
Are children's rates higher than 2025?
No, they are frozen as well. Children aged 0 to 5 get €357, ages 6 to 13 get €390, and teens 14 to 17 get €471. Education and participation support is separate and has to be applied for.
What happens if I miss a Jobcenter appointment?
A first miss usually triggers a warning. A second can mean a 10% cut for one month. If you had a good reason such as illness with a doctor's note, send it in immediately, ideally before the appointment.
Can I keep savings under Grundsicherungsgeld?
Yes, within the protected amount. From 1 July 2026 that is €5,000 to €15,000 per person, depending on age. Riester pension, an owner-occupied home and a reasonable car are protected on top. Life insurance is assessed at its cash-surrender value.
What counts as a reasonable job offer?
In principle any work you can physically and personally do. Under the renewed job-placement priority, work below your qualification level can count as reasonable. Exceptions: pay below decency, medical limits with a doctor's note, and single parents with children under 3.
Can I earn extra money while on Grundsicherungsgeld?
Yes. The first €100 per month is fully kept. Above that, a sliding scale of 20 to 30 percent of gross income is kept. Someone earning €450 from a part-time job keeps about €168 on top of the benefit.
Are there one-off payments?
Yes. Initial furnishing of a flat, baby and pregnancy starter sets, and class trips of two or more days are covered as one-off grants on application. They are not part of the basic rate.

Where to get free help

German social law is dense. Free advice is available at several points:

Verbraucherzentrale

Social-law advice, often free or for a small fee.

Caritas and Diakonie

Free counselling, also outside big cities.

Unemployed counselling

Independent advice centres in major cities, willing to fight for you.

Social-law lawyer

With a Beratungshilfeschein the local court pays the first session.

All Germany 2026 changes in one place

Tax, social benefits, consumer rights, energy and more. Here is the overview of every reform that takes effect in Germany in 2026.

Sources: BMAS rate adjustment ordinance 2026, Bundestag debate kw10/2026, SGB II as of 1 July 2026, Verbraucherzentrale and the Federal Employment Agency. Last updated: 17 May 2026. This article is for information only and does not replace individual legal or social advice.

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