Legal Texts on Citizen’s Allowance

The legal foundations of citizen’s allowance are set out in various laws and regulations. On this page, you will get an overview of the most important legal texts relevant to citizen’s allowance and learn where to find the complete and current versions.

Citizen’s allowance is regulated in the Second Book of the Social Code (SGB II), which was formerly known as the “Hartz IV Act”. With the introduction of citizen’s allowance on January 1, 2023, SGB II was comprehensively reformed.

The Most Important Paragraphs of SGB II at a Glance

§§ 1-6a: General provisions (task and objective of basic security, benefit principles, benefit recipients)
§§ 7-9: Eligible persons and needs community
§§ 11-11b: Income and its consideration
§§ 12-12a: Assets and their consideration
§§ 19-19a: Benefit entitlement and standard needs
§§ 20-21: Standard needs and additional needs
§§ 22-22a: Needs for accommodation and heating
§ 24: One-time benefits
§§ 25-26: Subsidies for insurance contributions
§§ 27-30: Special benefits for certain groups of persons
§§ 31-32: Benefit reductions
§§ 44a-50: Procedural provisions
§§ 53-55: Transitional provisions

Complete Legal Text of SGB II

You can find the complete and current text of SGB II on the website of the Federal Ministry of Justice at www.gesetze-im-internet.de/sgb_2/.

The Citizen’s Allowance Act

The “Act on the Introduction of Citizen’s Allowance” of December 16, 2022, regulated the transition from Hartz IV to citizen’s allowance. It is not a separate legal code, but an amending act that primarily reformed SGB II.

The Most Important Innovations through the Citizen’s Allowance Act

Higher standard rates: Increase in standard needs
Grace period: Assets are only checked to a limited extent in the first 12 months
Appropriateness of housing: In the first 12 months, actual costs are covered
Trust period: Fewer sanctions in the initial period
Cooperation plan instead of integration agreement: New forms of cooperation
Further training and qualification: Stronger promotion of education and training
Citizen’s allowance bonus: Additional incentives for further training
Unlimited social labor market: Long-term perspectives for long-term unemployed

Where Can You Find the Citizen’s Allowance Act?

You can view the complete Citizen’s Allowance Act in the Federal Law Gazette or on the website of the Federal Ministry of Labor and Social Affairs: www.bmas.de/DE/Startseite/start.html

Further Relevant Laws and Regulations

Alg II Regulation

The “Regulation on the Calculation of Income and the Non-Consideration of Income and Assets in Unemployment Benefit II/Social Benefit” (Alg II-V) specifies the provisions of SGB II on income and asset consideration. It regulates, among other things:

Which receipts count as income
How income is to be calculated
Which allowances apply to earned income
Which assets are not considered

You can find the current version of the Alg II Regulation at www.gesetze-im-internet.de/algiiv_2008/

Hardship Regulation

The “Regulation on Avoiding Unfair Hardships through Claiming an Old-Age Pension before Reaching the Standard Retirement Age” protects older citizen’s allowance recipients from financial disadvantages through premature pension receipt.

Municipal Provider Suitability Assessment Regulation (KtEfV)

This regulation governs the admission of municipal providers as sole providers of basic security for jobseekers (so-called “option municipalities”).

Unemployment Benefit II/Social Benefit Regulation

This regulation specifies the rules for calculating and paying citizen’s allowance.

Regulation on Standard Needs Determination (RBEV)

The Standard Needs Determination Regulation specifies how the amount of standard needs for citizen’s allowance is calculated based on the income and consumption sample. It is updated every five years.

You can find the current RBEV at www.gesetze-im-internet.de

Case Law on Citizen’s Allowance

In addition to legal texts, case law is also an important source of law. In particular, decisions of the Federal Social Court (BSG) have a decisive influence on the interpretation of citizen’s allowance provisions.

Important Judgments on Citizen’s Allowance/SGB II

You can find a regularly updated collection of important judgments in our Case Law section.

Professional Instructions and Implementation Guidelines

The Federal Employment Agency (BA) issues so-called “Professional Instructions” on SGB II for its employees, which specify the legal provisions and set requirements for practical implementation.

These internal instructions are not legally binding, but provide important guidance on how job centers apply the law in practice. They can be helpful in enforcing your rights.

You can find the current Professional Instructions on the website of the Federal Employment Agency: www.arbeitsagentur.de/veroeffentlichungen/weisungen

International Regulations

German citizen’s allowance is not isolated but embedded in European and international regulations on social security, including:

EU regulations on the coordination of social security systems
European Social Charter
UN Social Covenant (International Covenant on Economic, Social and Cultural Rights)

These overarching regulations can become relevant in certain cases (e.g., in cross-border matters).

Reading and Understanding Legal Texts Correctly

Structure of Legal Texts

Laws are structured hierarchically:

Books/Parts: e.g., Social Code II
Sections/Chapters: thematic blocks
Paragraphs (§): individual provisions
Subsections: numbered (1), (2), (3), etc.
Sentences: not numbered, separated by periods
Numbers/Letters: enumerations within a subsection

Tips for Working with Legal Texts

Read the complete paragraph, not just individual subsections
Pay attention to references to other provisions
Check the currency of the legal text
In case of ambiguities: Consult commentaries or case law
For complex legal questions: Seek expert advice

Note: This page provides an overview of the most important legal foundations of citizen’s allowance. The information has been carefully researched but does not replace professional legal advice. For specific legal questions, we recommend consulting an advice center or a specialist lawyer for social law.