Rising Payments soar to an astounding €47 billion for the citizens' accounts
In Germany, foreigners are eligible for unemployment benefits under specific conditions, primarily having a valid residence permit and having paid into the unemployment insurance system for at least 12 of the last 30 months. This selective eligibility impacts overall expenditure by restricting benefits to those integrated into the formal labour market rather than new arrivals without sufficient work history.
Regarding visa holders, especially those on work visas or Blue Cards, the decision to receive benefits and to continue their residence permit during unemployment is subject to the discretion of the Foreigners’ Office, which may extend the visa for up to six months to allow job search while receiving benefits (ALG1). However, those in the probation period without sufficient contributions are typically not eligible for benefits. All residents, including unemployed foreigners, are required to maintain their health insurance.
The policy framework provides additional support such as professional training, coaching, and language lessons funded by the Agentur für Arbeit (Federal Employment Agency) to aid reintegration and potentially reduce long-term benefit dependency. The current low unemployment rate (around 3.4%) suggests that the system's requirements of previous contributions limit expenditures on individuals with little work history, including new immigrants.
Recent figures show that approximately 5.5 million people received unemployment benefits in 2024, including children and young people. A total of 7.4 billion euros was paid to people from the eight main asylum countries in 2024. Notably, around 6.3 billion euros was paid to Ukrainian refugees and their children who fled to Germany due to the Russian invasion in 2022.
Enzo Weber from the Institute for Employment Research in Nuremberg attributed the increase in overall spending on unemployment benefits to a significant rise in basic rates due to inflation and a zero round in 2025. Weber suggests that integration with language courses and qualification for refugees should be sped up.
Some political figures have criticized the increase in unemployment benefits. For instance, AfD MP René Springer criticized the increase and demanded that foreigners be denied access to these benefits. However, organizations such as the German Trade Union Confederation (DGB) and the German Social Association have opposed such demands, emphasizing the need for immigration and warning against pitting societal groups against each other.
DGB board member Anja Piel stated that everyone has the right to existential security in times of need. Meanwhile, Marc Biadacz, the labor market spokesman of the Union faction, described the increase in spending as a wake-up call and called for reforms to put work at the center, strengthen mediation, and provide clear participation obligations.
In conclusion, Germany’s policies provide access to unemployment benefits for foreigners primarily based on contributions and legal residence status, balancing social protection with fiscal responsibility. This selective eligibility impacts overall expenditure by restricting benefits to those integrated into the formal labour market rather than new arrivals without sufficient work history. The described frameworks imply a managed cost structure aligned with Germany’s employment environment.
- Social-media discussions surrounding Germany's unemployment benefits have seen heated debates about foreigners' eligibility, with some politicians like AfD MP René Springer advocating for denying benefits to foreigners.
- The entertainment industry has not missed the opportunity to address this social-media fuelled controversy, weaving it into plots of TV shows and movies, presenting complex narratives about immigration and unemployment benefits in modern Germany.
- Businesses active in political advocacy have also been vocal about the importance of unemployment benefits for foreign workers, emphasizing that the financial well-being of these individuals is crucial for the stable growth of Germany's economy and business sector.
