Transition from Hartz IV to Bürgergeld
Transition from Hartz IV to Bürgergeld
Since January 1, 2023, Bürgergeld has been the new basic security for job seekers in Germany. It replaced the former “Unemployment Benefit II” (colloquially “Hartz IV”). This transition means not only a name change, but brought numerous substantial changes with it, which we illuminate in detail in this article.
Background of the Reform
The introduction of Bürgergeld was one of the central social policy reforms of the traffic light coalition. The goal was to overcome the aspects of the Hartz IV system that were criticized as too strict and partly degrading and to create a more dignified system that works more on an equal footing with those affected and promotes more sustainable paths into work.
The Most Important Innovations in Comparison
1. Higher Standard Rates
| Person Group | Hartz IV (2022) | Bürgergeld (2025) |
|---|---|---|
| Single persons/Single parents | 449 € | 563 € |
| Adult partners | 404 € | 506 € |
| Children 14-17 years | 376 € | 471 € |
| Children 6-13 years | 311 € | 390 € |
| Children 0-5 years | 285 € | 357 € |
Note: Standard rates are regularly adjusted. The values given correspond to the status as of March 2025.
2. Asset Protection and Grace Period
One of the most significant changes concerns the handling of assets of benefit recipients:
Hartz IV:
- Asset allowance: 150 € per year of life (minimum 3,100 €, maximum 10,050 €)
- Immediate asset check
- Strict requirements for the appropriateness of housing and car
Bürgergeld:
- Grace period of 12 months, during which substantial assets remain untouched
- During grace period: Protected assets of 40,000 € for the first person plus 15,000 € for each additional person in the household community
- After grace period: Protected assets of 15,000 € per person
- Self-occupied property in appropriate size is not considered
- A motor vehicle is generally not counted as assets, regardless of value
3. Housing Costs and Moves
Hartz IV:
- Strict appropriateness rules for rent and living space
- In case of excess: Quick demand to reduce costs or move
Bürgergeld:
- Grace period of 12 months, during which actual housing costs are accepted
- After grace period: Appropriateness check, but with more flexibility
- No forced moves for minor exceedance of the appropriateness limit
4. Sanction Regulations
Hartz IV:
- Gradual reductions up to 30% for violations of obligations
- For repeated violations, reductions up to 60% possible
- For under 25-year-olds, even total sanctions possible
Bürgergeld:
- Trust period of 6 months without sanctions for violations of obligations (except for missed notifications)
- After trust period: Gradual sanctions up to maximum 30%
- No more enhanced sanctions for young people
- More focus on cooperation instead of punishment
5. Promotion of Further Education and Qualification
Hartz IV:
- Focus on quick placement in any acceptable work
- Fewer incentives for long-term qualification
Bürgergeld:
- Stronger incentives for further education and qualification
- Further education money: additionally 150 € monthly for participation in qualification-related further education
- Bürgergeld bonus: 75 € monthly for participation in measures for sustainable integration
- Less pressure to accept auxiliary jobs
6. Improvements for Additional Earners
Hartz IV:
- Allowance: 100 € plus 20% of gross wage between 100 and 1,000 € and 10% between 1,000 and 1,200 € (with children up to 1,500 €)
Bürgergeld:
- Higher allowances for income from work
- Special allowances for student, trainee, and apprentice jobs
- Simplified rules for self-employed
7. Cooperation Plan Instead of Integration Agreement
Hartz IV:
- Mandatory integration agreement with legal instruction
- Rather formalistic, administration-oriented approach
Bürgergeld:
- Cooperation plan with joint development of goals and steps
- Strengths and potential-oriented approach
- More equality and respect in interaction
Critical Assessment of the Reform
The Bürgergeld reform is evaluated differently depending on political perspective:
Proponents argue:
- More dignity and respect for benefit recipients
- More realistic chances for sustainable integration into the labor market
- Reduction of bureaucratic hurdles and senseless sanctions
- Better fight against hidden poverty
Critics fear:
- Lower work incentives through higher benefits
- Unfairness toward low earners without benefit receipt
- Too generous asset regulations
- Possibly rising costs for public budgets
Conclusion: A Paradigm Shift in Basic Security
The transition from Hartz IV to Bürgergeld marks a clear paradigm shift in German social policy. While the Hartz IV system was strongly oriented toward demanding and sanctioning, Bürgergeld focuses more on supporting, cooperating, and sustainable integration.
Whether the reform will achieve all its goals can only be finally evaluated in a few years. However, it is clear that with Bürgergeld, a fundamental reorientation of basic security was initiated, which is intended to give those affected more dignity and development opportunities.
Note: The presentation of differences is based on the current status (March 2025). Since Bürgergeld continues to be the subject of political discussions, individual regulations may change in the future.