Apply for a start-up allowance
The start-up allowance is intended to provide you with a financial incentive if your income is initially not or hardly higher than your previous cash benefits from basic security.
Entry allowance is granted to you as a non-creditable grant.
The amount of funding can be determined by each job centre on the basis of the legal criteria and amounts to a maximum of 50 percent of the standard rate of the citizens' allowance. When calculating the amount, the duration of your unemployment and the size of your community of need are taken into account, among other things. Therefore, the amount of the entry fee varies depending on the individual case.
For special groups of people, your Jobcenter can also make a flat-rate assessment. This makes it easier to make the same decisions in similar cases and applies in particular:
- Term unemployed
- Single parent
- migrants,
- Elder
- Persons with health impairments,
- Women in Partner Communities of Need.
You can receive start-up money for a maximum of 24 months.
Whether and to what extent you can receive an entry-level allowance is decided solely by your Jobcenter. That is, you have no legal claim to it.
Process flow
In order to receive the entry-level allowance, you should first arrange a consultation at your local job centre:
- Contact the responsible job centre and make an appointment.
- In the case of employment subject to social security contributions, you can also apply for an entry-level allowance online.
- The integration specialist will record your data and check whether you meet the eligibility requirements.
- The advisor makes a discretionary decision on this basis.
- You will receive a notification by post or online with the approval or rejection of your application.
- If your application is approved, the Jobcenter will transfer the amount to your account each month in advance.
Requirements
- You will receive a citizen's allowance before you start your new job. Unemployment is not a prerequisite.
- You must submit the application to your Jobcenter before you actually start working.
- Your new self-employment or your new employment is suitable for overcoming your need for help in the future.
- The entry allowance is necessary for your integration into the general labour market.
- They work at least 15 hours per week.
- Additional requirements for self-employment/business start-ups:
- Positive assessment of the Jobcenter about
- Your personal suitability,
- the economic viability of your self-employment
Which documents are required?
In the case of self-employment/business start-ups:
- Application for funding
- Curriculum vitae, including, if applicable, any necessary qualifications
- Meaningful description of the business start-up project to explain the business idea (business concept/business plan)
- Capital Requirements and Financing Plan
- Revenue and profitability forecast (expected revenue and costs) for the next 3 years
- If applicable, an opinion from an external third party or an expert body on the viability of your company
- Competent bodies are: chambers, trade associations, credit institutions, start-up initiatives
- Proof that you are self-employed, for example by registering your business, registering your business with the tax office or confirming that you have changed from a secondary business to a main business
- if applicable, further evidence, e.g. of your
- Accident insurance or
- Business liability or
- Entry in the Register of Craftsmen
In the case of employment subject to social security contributions:
- Application for funding
- Copy of your employment contract
What deadlines do I have to pay attention to?
You must not have started working when you apply for an entry-level allowance. This applies both to the commencement of employment subject to social security contributions and to your self-employment.
Appeal
- Contradiction
- Administrative court action
Information about the entry allowance for employment on the BA website
Information on support for business start-ups can be found on the BA website
Technically approved by
Federal Ministry of Labour and Social Affairs (BMAS)
Professionally released on
31.07.2023
Author
The text was automatically translated based on the German content.
