Regulations on Citizen’s Allowance

While the Social Code II (SGB II) sets the basic rules for citizen’s allowance, numerous regulations specify these legal requirements. Regulations are legal provisions issued by the executive (federal government, federal ministries) and contain detailed rules for implementing the laws.

This page gives you an overview of the most important regulations in the area of citizen’s allowance and explains their content and significance for benefit recipients.

Alg II Regulation (Unemployment Benefit II/Social Benefit Regulation)

The Regulation on the Calculation of Income and the Non-Consideration of Income and Assets in Unemployment Benefit II/Social Benefit (short: Alg II-V) is one of the most important regulations for citizen’s allowance recipients.

Central Regulatory Areas

The Alg II Regulation specifies in particular:

Which receipts count as income and how it is to be calculated
Which deductions (allowances) can be deducted from income
Which assets are not considered (protected assets)
How income and assets are to be treated for certain groups of persons (e.g., self-employed)

Important Paragraphs at a Glance

§ 1: Definition of income to be considered
§ 2: Amounts to be deducted from income (e.g., taxes, insurance contributions)
§ 3: Allowances for employed persons (basic allowance, percentage allowances)
§ 5-5a: Special rules for self-employed
§ 6-7: Assets not to be considered (including old-age provision, appropriate household goods)
§ 8: Calculation of the value of a motor vehicle

Practical Significance

The Alg II Regulation is particularly relevant for:

Employed citizen’s allowance recipients (“top-up recipients”)
Self-employed persons with citizen’s allowance entitlement
Benefit recipients with various types of income
Persons with assets that fall within the grace period

Current Version and Changes

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

With the introduction of citizen’s allowance, important changes were made, in particular:

Increase in allowances for earned income
More generous rules on protected assets during the grace period
New rules on the consideration of income from student jobs

Standard Needs Determination Regulation (RBEV)

The Regulation on the Determination of Standard Needs according to § 28 of the Twelfth Book of the Social Code (RBEV) regulates the calculation of citizen’s allowance standard rates.

Central Regulatory Areas

The RBEV specifies:

Which data from the income and consumption sample (EVS) are used for the calculation
Which consumption expenditures are considered for standard needs
How the updating of standard needs between EVS surveys takes place

Practical Significance

The RBEV is the basis for the amount of monthly standard benefits of citizen’s allowance. It is reissued every five years based on the current income and consumption sample.

The amount of standard needs according to the current RBEV is (as of 2025):

Standard needs level 1: 563 € (single persons, single parents)
Standard needs level 2: 506 € (couples per person)
Standard needs level 3: 451 € (adults in institutions)
Standard needs level 4: 471 € (youth aged 14-17)
Standard needs level 5: 390 € (children aged 6-13)
Standard needs level 6: 357 € (children aged 0-5)

Criticism and Controversies

The RBEV is politically controversial. Critics argue that:

The methodology of standard needs determination produces amounts that are too low
Certain necessary expenditures are not considered
The reference group (lower 15% or 20% of income recipients) is too narrowly defined

The Federal Constitutional Court has fundamentally confirmed the methodology but also demanded improvements.

Current Version

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

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.

Central Regulatory Areas

The regulation specifies when older citizen’s allowance recipients are not required to claim an old-age pension prematurely, although according to § 12a SGB II they would actually have to apply for other social benefits first.

Practical Significance

The Hardship Regulation is relevant for all citizen’s allowance recipients who:

Have reached the age of 63
Could basically apply for an early old-age pension
Would have to accept permanent reductions through premature pension receipt

Thanks to the regulation, these persons can continue to receive citizen’s allowance until reaching the standard retirement age without being forced to enter retirement with reductions.

Current Version

You can find the current version of the Hardship Regulation here: www.gesetze-im-internet.de

Municipal Provider Suitability Assessment Regulation (KtEfV)

The Municipal Provider Suitability Assessment Regulation regulates the admission of municipal providers as sole providers of basic security for jobseekers.

Central Regulatory Areas

The KtEfV specifies:

Which requirements municipalities must meet to be admitted as “option municipalities”
Which application procedure applies for this
How the suitability of municipal providers is determined

Practical Significance

The KtEfV has primarily administrative-organizational significance. For benefit recipients, it is relevant because it determines whether in their region the job center is operated as a joint institution of the Federal Employment Agency and the municipality or exclusively as a municipal institution.

Current Version

You can find the current KtEfV here: www.gesetze-im-internet.de/ktefv/

Minimum Requirements Regulation (MindAnfV)

The Regulation on the Procedure for Determining Suitability as an Admitted Municipal Provider of Basic Security for Jobseekers supplements the KtEfV and sets minimum requirements for option municipalities.

Central Regulatory Areas

The MindAnfV specifies the suitability criteria for municipal providers, in particular regarding:

Organizational structure
Staffing
IT equipment
Cooperation with other authorities

Current Version

You can find the current MindAnfV here: www.gesetze-im-internet.de

Entry Benefit Regulation (ESG-V)

The Entry Benefit Regulation regulates the promotion of employable benefit recipients when taking up employment subject to social insurance or self-employed activity through entry benefit according to § 16b SGB II.

Central Regulatory Areas

The ESG-V specifies:

How the amount of entry benefit is calculated
Which individual factors are considered in the assessment
For which period entry benefit can be granted

Practical Significance

The ESG-V is relevant for all citizen’s allowance recipients who:

Want to take up employment
Plan self-employed activity
Need additional financial support to enter the labor market

Current Version

You can find the current ESG-V here: www.gesetze-im-internet.de/esgv/

Unemployment Benefit II/Social Benefit Regulation (Alg II-/SG-V)

Not to be confused with the Alg II Regulation (Alg II-V), the Unemployment Benefit II/Social Benefit Regulation (Alg II-/SG-V) regulates further details on benefit provision.

Central Regulatory Areas

The Alg II-/SG-V specifies:

The calculation of benefits
Payment modalities
The consideration of loans

Current Version

You can find the current Alg II-/SG-V here: www.gesetze-im-internet.de/algiisogv/

Citizen’s Allowance Data Matching Regulation (BüG-DAVV)

The Citizen’s Allowance Data Matching Regulation regulates the automated matching of data of benefit recipients with data from other authorities.

Central Regulatory Areas

The BüG-DAVV specifies:

Which data may be matched between which authorities
At what time intervals data matching takes place
How the results of data matching are to be handled

Practical Significance

The regulation has primarily significance for data protection and the control of benefit abuse. It limits data matching to the legally permissible extent.

Current Version

You can find the current BüG-DAVV here: www.gesetze-im-internet.de

How Are Regulations Issued?

Unlike laws, which are passed by parliament (Bundestag), regulations are issued by the executive:

SGB II contains so-called regulation authorizations that specify on which topics the responsible ministry or the federal government may issue regulations
The federal government or the Federal Ministry of Labor and Social Affairs drafts a regulation
In many cases, the Bundesrat must approve the regulation
After publication in the Federal Law Gazette, the regulation enters into force

Importance of Regulations for Your Rights

Regulations have significant effects on your rights as a citizen’s allowance recipient:

They specify the often general legal texts
They determine how job centers are to implement the law in practice
They determine important details such as allowances, calculation methods, and procedures

Tips for Dealing with Regulations

In letters to the job center, also refer to relevant regulations
In case of disputed decisions, check whether the job center has correctly applied the regulations
Pay attention to changes in regulations that could improve your benefit entitlements

Further Information

Note: This page provides an overview of the most important regulations on 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.