When you lose your job in Germany, you may be entitled to Arbeitslosengeld I (ALG I) — the contributory unemployment benefit paid by the Federal Employment Agency (Bundesagentur für Arbeit). The amount depends on your previous salary, tax class, contribution history and age. Our unemployment benefit calculator computes your daily rate, monthly amount and maximum entitlement period instantly.

What Is Arbeitslosengeld I?

ALG I is an insurance benefit under §§ 136–164 SGB III (Social Code Book III). It is not a means-tested welfare payment — it is an entitlement you earn through contributions to the unemployment insurance (Arbeitslosenversicherung). Eligibility requirements (§137 SGB III):

  • Registered as unemployed (no insured employment)
  • At least 12 months of contribution time in the last 30 months (qualifying period)
  • Personally registered as unemployed at the employment agency
  • Actively seeking new employment

How Is ALG I Calculated?

The calculation follows §149 SGB III and is based on the Bemessungsentgelt — your average gross salary over the last 12 months, capped at the contribution assessment ceiling:

Bemessungsentgelt = min(avg. gross salary last 12 months, contribution ceiling)
Net assessment base = Bemessungsentgelt − tax and social contributions (lump-sum)
Daily ALG I = Net assessment base × benefit rate ÷ 30
Monthly ALG I = Daily ALG I × 30

Benefit rates (§149 SGB III):

  • 60 % of net assessment base — without qualifying children
  • 67 % of net assessment base — with at least one qualifying child (§32 EStG)

Contribution Assessment Ceiling 2026

The assessment base is capped at the pension insurance contribution ceiling (§341 SGB III):

RegionMonthlyAnnual
West€7,550€90,600
East€7,300€87,600

Higher earners receive ALG I only up to this ceiling — the maximum rate applies regardless of actual salary.

Worked Example: €3,500 Gross, Tax Class I, No Children

CategoryAmount
Gross salary€3,500
Assessment base (below ceiling)€3,500
Net assessment base (Tax Class I)approx. €2,290
Benefit rate (no children)60 %
Monthly ALG Iapprox. €1,374
Daily ALG Iapprox. €45.80
Replacement rateapprox. 60 %

Calculate your individual figures using the unemployment benefit calculator.

Effect of Tax Class

Tax class directly affects the lump-sum net assessment base and therefore the ALG I amount:

  • Tax Class I, IV — mid-range net; most common
  • Tax Class III — higher net → higher ALG I
  • Tax Class V, VI — lower net → lower ALG I
  • Tax Class II — single parents, similar to Class I

ALG I itself is tax-free (§3 No. 2 EStG) but subject to the Progressionsvorbehalt: it raises the effective tax rate on any other taxable income in the same year. A tax return is strongly recommended.

Maximum Benefit Duration (§147 SGB III)

Duration depends on total contribution months and your age at the start of unemployment:

Contribution monthsMinimum ageMaximum duration
126 months
168 months
2010 months
2412 months
3050 years15 months
3655 years18 months
4858 years24 months

Only contributions within the last 5 years count. If you have fewer than 12 qualifying months, you have no entitlement to ALG I.

Maximum Rate: ALG I Above the Contribution Ceiling

If your salary exceeds the contribution ceiling (€7,550/month West, €7,300/month East), ALG I is based on the ceiling value:

  • West: up to approx. €4,340/month (60 %) or approx. €4,851/month (67 %)
  • East: up to approx. €4,197/month (60 %) or approx. €4,690/month (67 %)

Exact amounts depend on tax class — use the unemployment benefit calculator for your individual maximum.

Tip: Register on Time and Avoid Benefit Suspensions

You must register as unemployed at the employment agency on the very first day of unemployment. If you quit voluntarily or fail to register in time, you face a Sperrzeit (benefit suspension) of up to 12 weeks. Registering early — ideally three months before your last day if you know in advance — prevents this.

After ALG I: Bürgergeld

If ALG I runs out before you find work, you may be eligible for Bürgergeld (basic income support). Unlike ALG I, Bürgergeld is means-tested: income and assets are taken into account. Use the unemployment benefit calculator to understand your ALG I entitlement and plan ahead.

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