Unemployment insurance ("Arbeitslosenversicherung") contributions are part of the statutory social security payments. The persons with a duty to contribute to unemployment insurance are detailed in §§ 24 et seq. SGB III.

Unemployment insurance ("Arbeitslosenversicherung") will generally be deducted automatically from salaries before being paid. As a rule, the employer is responsible for paying half of the contribution towards unemployment insurance, the employee the other half, which will generally be deducted automatically. 

Pursuant to § 341 SGB III, the contribution rate totals 2.5% of the gross income subject to contributions, whereby so-called annual income thresholds of 90,600 euro in the west and 89,400 euro in the east of Germany apply as of 1st January 2024. Income exceeding these thresholds no longer has an impact on the contribution payable.

As part of the unemployment insurance scheme, the local employment agency ("Agentur für Arbeit") actively promotes employment (mediation, further training) and provides income support ("Arbeitslosengeld") for those receiving unemployment benefits.

Those meeting the entitlement criteria (i.e. who were employed in Germany immediately before becoming unemployed and paid social security contributions in Germany for a minimum of twelve months in the past two years) and are available for work are entitled to claim German unemployment benefits.

Past periods of employment in Member States of the EU, EEA States and Switzerland can generally also be taken into account. For this purpose, the form PD U1 / E301 will need to be completed with the periods worked as an insured employee in the relevant state or states. This form can be obtained from the National Insurannce of the relevant state or states. The official blank forms provided by the German employment agency can be found below under "Further Information".

Fellowships are usually exempt from compulsory social security payments.

To what extent benefits accrued in Germany will be recognized by unemployment insurance companies in other countries must be ascertained in each individual country. If you are returning to a country that does not have a Social Security Agreement ("Sozialversicherungsabkommen") with Germany, it will not be possible to receive German unemployment benefit there.

While drawing unemployment benefit ("Arbeitslosengeld"), recipients' contributions towards health insurance and long-term care insurance are paid by the Employment Agency ("Agentur für Arbeit"). Statutory pension scheme contributions will also be paid. The unemployment insurance provider is the German Federal Employment Agency, represented by its Local Employment Agencies.