Germany tightens rules on unemployment benefits: what will change from July 1, 2026

Germany is changing its social support rules for the unemployed, making the system stricter. Find out what Grundsicherung is, what sanctions will be introduced in 2026, and how these changes will affect Ukrainians in Germany

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Germany is preparing for one of the toughest social reforms in recent years. From July 1, 2026, a new system of state support — Grundsicherung (“basic support”) — will be introduced for able-bodied unemployed people in the country, replacing the current Bürgergeld model. The government has already openly stated that the new rules will be significantly stricter. This was reported by Bild.

What is Grundsicherung and who does it apply to?

Grundsicherung will be a new form of social assistance for able-bodied unemployed people. This concerns approximately 3.87 million people — the number of current Bürgergeld recipients who are officially considered able-bodied and will automatically switch to the new system.

The reform aims to strengthen control over compliance with the conditions for receiving payments and to encourage more active interaction between the unemployed and employment centers.

Payment amounts: what will remain unchanged

Despite the change in approach, the monthly assistance amounts will remain at the current level:

● €563 for one adult;

● €506 for a partner;

● €357 to €471 for children, depending on their age.

The Federal Ministry of Labor emphasizes that the state will continue to pay for housing and heating costs, provided that the established rules are followed.

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The main change is strict sanctions

The key difference between Grundsicherung and Bürgergeld is the system of penalties and restrictions. Under the new rules:

● for the first violation of payment obligations, payments may be reduced by 30%;

● after three missed visits to the employment center, benefits may be terminated completely;

● if a person does not contact the authorities for more than four weeks, the state will stop paying not only benefits but also housing compensation.

For comparison: in the Bürgergeld system, sanctions started at a symbolic 10%, which the government considers an insufficient incentive to look for work.

What will change for Ukrainians in Germany

Separate rules apply to Ukrainian citizens:

● Ukrainians who arrived in Germany after April 2025 will no longer receive Grundsicherung — they will receive lower payments for asylum seekers;

● Ukrainians who arrived earlier and applied for refugee status remain in the new Grundsicherung system under general conditions.

This means that the date of entry and residence status become key factors for access to social assistance.

The tightening of sanctions makes the system much less flexible. Mistakes in communication with the employment center, missed appointments, or incorrectly completed documents can have serious financial consequences — up to and including the loss of benefits and housing compensation.

That is why it is important for Ukrainians in Germany to clearly understand their rights and obligations. In complex or controversial situations, it is worth consulting with specialists. The Visit Ukraine platform offers consultations with immigration lawyers for Ukrainians, who can help you understand your residence status, social benefits, employment, and interaction with German government agencies — without the risk of losing your legal privileges.

We remind you! Germany has significantly tightened its migration rules, changing the procedures for asylum, deportation, and naturalization. Read how the new laws will affect Ukrainians and who is at risk of losing support.

Photo: Pixabay

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