Unemployment Insurance

Unemployment

Unemployment Insurance
Unemployment insurance contributions are paid in the country of employment. In Germany, the percentage of gross wages to be paid in 2025 will be 1.3% for both employees and employers.

 

(This is an automatic translation by DeepL Translator.)

Unemployment benefits are paid by the unemployment insurance system of the country in which you reside. Therefore, cross-border commuters residing in Saxony receive their unemployment benefits in Saxony, while cross-border commuters residing in the Czech Republic receive their unemployment benefits in the Czech Republic. The eligibility requirements of the country of residence apply in each case.
Unemployed individuals must, as required by law, make an effort to end their unemployment and be available for job placement services provided by the Employment Agency. It is possible to work less than 15 hours per week while receiving unemployment benefits.
Unemployed individuals must register in person at the responsible Employment Agency or register digitally as unemployed. A written or telephone notification is not sufficient. Registration must take place no later than the first day of unemployment.
Only unemployed individuals who can provide proof of at least twelve months of employment subject to social insurance contributions are eligible to receive benefits. Proof of the required twelve months may be provided within a 30-month period preceding the date of application for unemployment benefits.
The amount of unemployment benefits is based on the gross wages subject to social insurance contributions that the unemployed person earned on average during the last year prior to becoming eligible for unemployment benefits and which were finalized upon termination of employment. A flat-rate net wage is calculated from this gross wage, taking into account wage deductions. For unemployed individuals with one child as defined by tax law, the amount of unemployment benefits is 67 percent of this flat-rate net wage; for all other unemployed individuals, it is 60 percent.
The duration of unemployment benefits depends on the period of employment subject to insurance contributions within the last five years prior to registering as unemployed and on the age of the claimant at the time the entitlement arises.
Employees who act in violation of insurance regulations without a valid reason must expect a waiting period of one to twelve weeks. During the waiting period, the entitlement to unemployment benefits is suspended, meaning that benefits are not paid. In addition, the duration of the entitlement is reduced by the length of the waiting period.
Unemployed individuals who have acquired entitlement to German unemployment benefits may continue to receive these benefits for three to six months while seeking work in an EU member state (portability/export of benefit entitlement).

(This is an automatic translation by DeepL Translator.)

You should start looking for a job as early as possible so that you can find a new position in time and, ideally, avoid becoming unemployed. It is important to note that the Employment Agency must receive your notification that you are looking for work no later than 3 months before your current employment ends. If you are notified at short notice that your employment is ending, you must register as a job seeker within 3 days.
Anyone who registers as a job seeker too late must expect financial penalties regarding unemployment benefits.
Registering as a job seeker does not replace registering as unemployed.
You can register as a job seeker in three ways: online, by phone using the toll-free service number (0800 4 555500), or in person at your local Employment Agency. It is recommended to schedule an appointment online in advance. You may only register using one of these three methods.
The Employment Agency provides support in the job search, and you can use the agency’s job board. Those looking for work across borders should take advantage of the free assistance offered by a EURES advisor at the Employment Agency (eures.europa.eu). Further information for foreign workers is available here: https://www.make-it-in-germany.com/de/.
Even those who are registered as unemployed in the Czech Republic and receive unemployment benefits there have the option to enter Germany and continue receiving those benefits there for a certain period of time. To do so, you must:
- have been registered as unemployed with the employment agency for at least 4 weeks
- submit an application using Form PD U2 to the relevant Employment Agency
- register with the local Federal Employment Agency (BAA) in Saxony no later than 7 days after arrival and submit Form PD U2. You must also remain available to the BAA for job placement.

If the requirements are met, the employment agency in your home country will pay unemployment benefits for 3 months starting from your departure date (to your bank account in your home country). In certain cases, the payment period may be extended to 6 months. You will continue to be covered by health insurance in your home country for the duration of the payments.
Another option is to use the services of private employment agencies. These agencies are primarily focused on placing people in jobs.
With a placement certificate from the Employment Agency, these services are even free of charge. Only individuals registered as unemployed are eligible for a placement certificate. Unemployed individuals who commute across borders or those who are not unemployed are not eligible for the placement certificate.

(This is an automatic translation by DeepL Translator.)