Bürgergeld Has Been Replaced: The New Rules for Grundsicherungsgeld

Since 1 July 2026, Germany’s Bürgergeld has been replaced by Grundsicherungsgeld. More than just the name has changed: stricter rules now apply to accepting work, attending Jobcenter appointments, personal assets and housing costs. Here is what benefit recipients need to know. Since 1 July 2026, Grundsicherungsgeld has replaced the previous Bürgergeld in Germany. It is a form of financial support for people who cannot cover their living expenses, or cannot cover them fully, using their own income and resources. The reform introduces new rules and obligations for Jobcenter clients. The most important changes concern accepting suitable employment, following the agreed cooperation plan, attending Jobcenter appointments, benefit reductions, personal assets and housing costs. Anyone who was already receiving Bürgergeld does not need to submit a new application solely because the benefit has been renamed. What Is Grundsicherungsgeld? Grundsicherungsgeld is a state benefit for people who are capable of working but whose income and usable assets are insufficient to cover their basic living expenses. People who are employed may also receive Grundsicherungsgeld if their earnings are not enough to cover the living costs of themselves and their family. When determining eligibility, the Jobcenter generally considers not only the individual applicant but also the other members of their Bedarfsgemeinschaft , or benefit household. Depending on the family situation, this may include spouses, partners and children living in the same household. Who Can Receive Grundsicherungsgeld? According to Germany’s Federal Employment Agency, the following basic conditions must generally be met: The person is at least 15 years old. They have not yet reached the statutory retirement age. They live in Germany and Germany is the main centre of their life. They are capable of working for at least three hours per day. They or members of their benefit household are in financial need. An unemployed person may receive Grundsicherungsgeld if they are not entitled to unemployment benefit or if their unemployment benefit is too low to cover their living expenses. People who are employed but earn a low income may also qualify. In such cases, Grundsicherungsgeld serves as a supplementary benefit. Household members who are not capable of working may also be covered if they live in a benefit household with an employable person who is entitled to Grundsicherungsgeld. Are Foreign Nationals Eligible? Foreign nationals may be entitled to Grundsicherungsgeld, but they must satisfy additional residence-related requirements alongside the general eligibility conditions. A person may qualify, for example, if they: are employed or self-employed in Germany, come from an EU member state, the European Economic Area or Switzerland, previously worked in Germany and became unemployed involuntarily, come from a non-EU country and hold a residence permit that allows them to receive Grundsicherungsgeld. A person will generally not qualify if they: are not legally resident in Germany, came to Germany solely to look for work, receive financial support under the Asylum Seekers Benefits Act. For foreign nationals, eligibility depends on factors including citizenship, residence status, previous employment and personal circumstances. In unclear cases, it is advisable to request written information from the Jobcenter or obtain qualified legal advice. Employment Placement Takes Priority One of the most important changes concerns employment placement. If suitable and reasonable work is available, benefit recipients are generally required to accept it. Refusing an appropriate job offer without a valid reason may result in a reduction in benefits. The purpose of the reform is to help people who are capable of working return to employment more quickly. However, the Jobcenter may continue to fund qualifications, retraining and further education if these measures are likely to improve a person’s chances of finding lasting employment. This is particularly relevant to younger people, but support for further education is not limited to those under the age of 30. Stricter Benefit Reductions for Breaches of Obligations The new rules introduce clearer consequences when benefit recipients fail to meet their agreed obligations. In the event of a breach, the Jobcenter may immediately reduce the standard benefit by 30 percent for three months . Before making such a decision, the Jobcenter must examine the individual circumstances and determine whether there was a valid reason for the breach. Letters from the Jobcenter should therefore never be ignored. If there is a medical, family-related or other serious reason why an obligation could not be fulfilled, the Jobcenter should be informed as early as possible. Supporting evidence should be submitted whenever possible. What Happens If You Miss a Jobcenter Appointment? People receiving Grundsicherungsgeld are required to attend appointments and respond to invitations from the Jobcenter. Under the new rules: From the second appointment missed without a valid reason, the Jobcenter may reduce the standard benefit by 30 percent for one month . If a person misses three consecutive appointments without a valid reason, their entitlement to benefits may be withdrawn completely. Anyone unable to attend an appointment should notify the Jobcenter before the appointment or immediately afterwards. Illness, an urgent family situation or another serious circumstance may be accepted as a valid reason. However, the Jobcenter may request supporting evidence. A telephone call alone may not always be sufficient. It is safer to send an additional written notification through the official online portal, by email, fax or post. Proof that the notification was sent on time should be retained. The Cooperation Plan Becomes More Binding The Kooperationsplan , or cooperation plan, is an agreement between the benefit recipient and the Jobcenter. It sets out specific steps, support and activities intended to help the person find employment. A cooperation plan may include: submitting a specified number of job applications, attending job interviews, taking part in a German language course, completing further training or retraining, participating in other Jobcenter programmes. Benefit recipients are required to comply with the agreements set out in the cooperation plan. The previous formal mediation procedure for disputes concerning the cooperation plan will no longer be available. It is therefore particularly important to raise questions immediately if any requirements are unclear or appear unrealistic. Parents Will Be Included in Employment Support Earlier Parents caring for young children may now be included in counselling and employment placement at an earlier stage. This may begin once the child has reached the age of 14 months , provided that reliable childcare is available. From that point, parents may be expected to: accept suitable employment, participate in integration measures, attend an integration or language course. The Jobcenter must consider the actual childcare situation. If no childcare place or other reliable form of care is genuinely available, the responsible Jobcenter adviser should be informed and supporting evidence should be provided where possible. New Rules on Personal Assets One significant change is the removal of the previous Karenzzeit , or grace period, during which more generous asset rules applied at the beginning of a benefit claim. The amount of protected assets now depends on the age of each member of the benefit household. According to the Federal Employment Agency, the following individual allowances apply: up to the age of 30: €5,000 from the age of 31: €10,000 from the age of 41: €12,500 from the age of 51: €20,000 When assessing assets, the Jobcenter may take the following into account: cash and savings, securities and ETF investments, certain vehicles and valuables, life insurance policies with a cash value, houses, land and owner-occupied apartments. Certain assets remain protected or are not taken into account. An appropriately valued car may, for example, continue to be excluded from the calculation. All assets must be declared to the Jobcenter. Failing to disclose bank accounts, savings, property or other relevant assets may result in benefits being reclaimed and could have further legal consequences. Limits on Housing Costs New rules also apply to housing costs. During the first year of receiving Grundsicherungsgeld, the Jobcenter will generally cover housing costs only up to one and a half times the locally applicable reasonable-cost limit . The exact limit depends on the place of residence, the number of household members and local rental prices. Exceptions may be possible in special cases. These may apply, for example, to families with children or benefit households for whom moving would cause particular hardship. If the Jobcenter considers the housing costs too high, it may require the recipient to reduce them. This could involve finding a cheaper home, taking in a subtenant or using another method to lower the costs. Anyone expecting the Jobcenter to pay for a new home should not sign a new rental agreement before receiving written approval from the Jobcenter. How Is Income Taken Into Account? People who are employed may also receive Grundsicherungsgeld. However, their income affects the amount of support they receive. The first €100 of employment income is treated as a basic allowance and is not fully deducted from the benefit. Additional allowances may apply at higher income levels. As a result, a person who works will generally have more total income available than someone with no employment income. The following may be taken into account as income: wages and income from self-employment, unemployment benefit, parental allowance and sickness benefit, rental and leasing income, maintenance payments, child benefit, pensions, interest and investment income, tax refunds, severance payments, certain payments for trainees and students. All income and significant changes in financial or personal circumstances must be reported to the Jobcenter. Do Existing Bürgergeld Recipients Need to Apply Again? Anyone who previously received Bürgergeld does not need to submit an entirely new application because of the transition to Grundsicherungsgeld. According to the Federal Employment Agency: The existing Jobcenter contact person will remain the same. Programmes and further training that have already started will continue. Decisions issued before the reform remain valid in substance. Existing forms and online services may still be used. Some forms and letters may temporarily continue to use the term Bürgergeld. These documents remain valid. However, once the current approval period ends, a Weiterbewilligungsantrag , or application for continued benefits, must still be submitted on time. What Should Benefit Recipients Do Now? Anyone already receiving support should pay particular attention to the following: Check letters and online messages from the Jobcenter regularly. Do not miss scheduled appointments. Report illness or another valid reason for absence immediately. Follow the agreements set out in the cooperation plan. Declare all income, assets and changes in the household. Submit the application for continued benefits on time. Keep copies of important documents and proof of communication. Request a written review if there are doubts about a decision. Anyone who believes a decision is incorrect should check the deadline for filing an objection. In many cases, the deadline for a Widerspruch is one month after the decision is officially received. However, the legal-remedies notice in the relevant letter is decisive. Conclusion Since 1 July 2026, Bürgergeld has been replaced by Grundsicherungsgeld. For existing recipients, the transition generally takes place automatically. However, the reform introduces significantly stricter obligations. It is particularly important to attend Jobcenter appointments, accept suitable employment, comply with the cooperation plan and declare all income and assets. Missing three consecutive appointments without a valid reason may result in the complete loss of benefit entitlement. Other breaches of obligations may lead to a 30-percent reduction in the standard benefit. A new application is not required solely because the benefit has been renamed. However, an application for continued benefits must still be submitted when the current approval period ends. Gastarbajter24 will continue to monitor the implementation of the new rules and provide updates relevant to people from the Balkans who live and work in Germany. Please note: This article is intended for general information only and does not constitute legal or social-benefits advice. Entitlement to Grundsicherungsgeld and any benefit reductions depend on the circumstances of the individual case and the decision of the responsible Jobcenter. Sources: Federal Employment Agency – Grundsicherungsgeld replaces Bürgergeld , Federal Employment Agency – eligibility, income and assets