How is income calculated in the citizen's benefit programme?

When an application is submitted, the applicant's individual needs are first determined. This is primarily made up of the respective basic needs, the costs of accommodation and any additional needs. Any existing income and assets are compared to these needs. Before this, however, the respective allowances are deducted:

At first, a flat-rate deduction of 100 Euro is made from monthly income earned from gainful employment. Of the income in excess of this, 20 percent is then deducted for the part between 100 and 520 Euro, 20 percent for the part between 520 and 1.000 Euro (from 1 July 2023 then 30 percent) and another 10 percent for the part between 1.000 and 1.200 Euro is not counted as part of the benefits. For people who have at least one underage child, the last exemption level even applies up to an income of 1.500 Euro.

There are also allowances for assets. During the waiting period, i.e. the first year of benefit receipt, 40.000 Euro are not taken into account for the first person in the community of need. For each additional person, 15.000 Euro remain untouched. After the waiting period, the limit of 15.000 Euro applies to each member of the community of need.