The entrance allowance is a state support service for inclusion in a social security employment relationship and is paid as a subsidy to the Arbeitslosengeld II. The entry fee is intended to provide a financial incentive to overcome the need for assistance and is therefore not counted as income on the Arbeitslosengeld II.
The entry fee is regulated by § 16b SGB II. In this, the granting of the subsidy is expressly given as a discretionary power, which is why there is no direct legal claim on the entrance allowance. The claim is examined as a case-by-case decision on the basis of the respective circumstances by the competent authority and its clerk. In addition to the existing unemployment and the receipt of benefits under SGB II, the decisive factor for entitlement to the entrance allowance is whether or not the need for assistance can be really terminated with the intended activity.
Entitlement to the Entrance Fee:
- They are unemployed before the start of the social insurance or self-employed occupation and receive benefits under the Social Security Code II,
- The activity subject to social insurance or self – employment is capable of terminating the need for assistance through the income from employment;
- The promotion of integration into the first labor market,
- The working week is at least 15 hours
Amount of Funding
As a rule, the funding rate is 50 per cent of the standard rate for the Arbeitslosengeld II. The duration of unemployment and the size of the community of needs. Therefore, the amount of the entry fee varies according to the individual case. The grant is paid for a maximum of 24 months.
Additional Help for Self-Employed
Beneficiaries who are self-employed, or are already employed, can obtain loans or grants for the procurement of materials. The grants shall not exceed EUR 5,000. Since there is no legal right to the benefits, the resources must be necessary and appropriate on the basis of the discretionary decision on self-employment.
Furthermore, persons with a right to self-employment may also receive funding for advice and knowledge transfer by third parties (for example, start-up initiatives or company / tax consultants), e.g. to stabilize or reorient independent employment.