Unemployment benefits II (ALG II)
Access to the basic social safety net, especially to unemployment benefits II (ALG II), is being simplified temporarily. ALG II is intended to secure subsistence for all those in need. A person is also considered to be in need in this regard if they do not have enough money to live on despite working. In principle, self-employed persons who earn too little to live from their work can apply for supplementary ALG II. The measures taken to contain the virus are causing people to temporarily experience considerable losses of income. This can affect all workers, but especially small entrepreneurs and so-called sole proprietors. ALG II is to be made available now quickly and unbureaucratically. The approval periods are from 1 March 2020 to 30 June 2020:
- Suspension of the consideration of assets, i.e. savings can be retained for the first six months.
- Recognition of the actual expenditure on housing and heating as appropriate
- Simplification of the consideration of income in cases of a provisional decision
The federal government may extend the period for the simplified conditions by statutory order until 31 December 2020. The job centres will be relieved by the possibility of issuing further approvals even without an application.
Child supplement
If the parent's income is only enough for themselves but not for the whole family, parents can receive a child supplement. This measure especially strengthens low-income families and self-employed persons with no or only few employees.
The calculation of the child supplement will be temporarily adapted to the current situation so that it better reflects the current situation of families suffering from the consequences of the Corona crisis. For the time being, the test is based on the most recent monthly income and does not take into account assets, in order to make the benefit more accessible in a less bureaucratic way. Previously, the income for the last six months and a statement of assets had to be submitted.
In order to ease the burden on the family benefits office, approvals that expire between 1 April and 30 September 2020 are to be extended once for six months with the highest possible child supplement.
Staff needed to maintain health services and infrastructure
People who can help during the crisis, especially to maintain hospitals and the health system as well as infrastructure, public order and care, should not be prevented from doing so.
Pensioners, seasonal workers or recipients of reduced-hours work benefits, especially in agriculture, can also play a greater role during the crisis. The following decisions are intended to facilitate access to employment in the above areas:
- Higher additional earnings are possible while receive a pension: Instead of the previous 6,300 euros, pensioners can earn an additional 44,590 euros without having to cut their old-age pension.
- Time frames for short-term mini-jobs will be temporarily extended from 70 to 115 days (from three to five months).
- Waiver the offsetting of earned income against reduced-hours work benefits: Persons affected by reduced-hours work can take up employment without the reduced-hours work benefits being reduced.
This is intended to create an incentive to temporarily take up activities in systemically important areas on a voluntary basis.
In addition, nationwide exceptions to the working hours regulations are possible in order to ensure public safety and order, health care and nursing care, services of general interest and the provision of care for the population.
Wage replacement due to closing of daycare and school
Those who cannot work because they have no other option than to look after their children under the age of twelve or children with disabilities who are dependent on help, should continue to receive money from their employer. To this end, the government has created a right to compensation in the Infection Protection Act. Until now, this compensation has only been available if those affected are in quarantine. Now the employer can apply for reimbursement with the competent authority and would accordingly be reimbursed 67 percent of net income (maximum monthly amount of 2,016 euros). The scheme does not apply to periods when the childcare facility would be closed anyway for school holidays.