Statutory Unemployment Insurance

Statutory Unemployment Insurance
(Gesetzliche Arbeitslosenversicherung)
What is the Unemployment Insurance?
A multitude of benefits are provided within the scope of unemployment insurance. These
include benefits that support people's integration into employment or training, as well as
those that safeguard a person's livelihood in case of unemployment. Benefits are designed
primarily for those groups of people - employees and employers - who contribute to financing
the unemployment insurance system. In order to receive benefits, the affected person must
fulfill certain entitlement requirements.
Who is insured?
The provision states that in principle all persons gainfully employed above the insignificance
limit are liable to contribute to statutory unemployment insurance. Trainees are also
compulsorily insured against unemployment.
Benefits
Benefits of unemployment insurance among other things are:
o Counselling and placement support (job application costs, travel costs, placement
certificate),
o Measures for improving integration prospects
o Support for those taking on a new position, mobility assistance (transitional
allowance; assistance with expenses for clothing and equipment, travel, commuting,
setting up separate household near workplace, relocation)
o and lots of other benefits.
Financing
Unemployment insurance is financed through the contribution of employers and the insured
person. The contribution amount depends both on an employee's assessable income up to a
defined contribution assessment limit, which is adjusted each year (2015: 72.600 € (West
Germany); 62.400 € (East Germany) per year) and on the contribution rate.
The generally applicable contribution rate for retirement pension insurance is 3 percent. The
employer pays a half of the insurance contribution and the employee pays the other half.
For more information: http://www.deutsche-sozialversicherung.de/en/index.html
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