Deposits and deductions are legally protected amounts which are taken into account when determining the need for assistance. In principle, Hartz IV receive benefits for the basic maintenance of living expenses if they can not meet the daily costs of living with sufficient income or assets. This results in a need for assistance, which is absorbed by application-oriented control systems. The amount of the benefits is determined on the basis of so-called rule requirements, taking into account the applicant’s allowances and deductible amounts to be credited.
The voluntary allowances and deductible amounts include:
- Free allowance for gainful employment
- Private retirement provision
- Employer-funded pension