Briefly explained
Calculate the start-up grant amount
The Relationship Between Unemployment Benefits and Startup Grants
Once granted, the monthly startup grant is equal to the amount of Unemployment Benefit 1 you have been receiving to date, plus an additional €300 in the form of the so-called social insurance subsidy (SV); both are initially provided for a period of six months. In addition, there is the possibility of having the social security subsidy extended for another 9 months.
Bruno Schäfer
Do you have a strong desire to start your own business, but feel overwhelmed by all the processes, details, and paperwork?
Explanation of the Grant Amount
Under this system, every self-employed person is required to obtain private or statutory health insurance, and the current minimum premium for statutory health insurance is approximately €300.
The period during which you can receive both the startup grant and the SV at the same time is six months. After the six months have expired, you have the option to submit a follow-up application to extend the SV grant for an additional nine months.
While the startup grant is intended to help you cover your living expenses when you’re just starting out as a self-employed person and cannot yet fully support yourself with the profits you’ve earned, the conditions for the follow-up application are slightly different: It is granted only if your self-employment covers your living expenses to a large extent. The benefits are intended to subsidize your personal living expenses for an additional 9 months. Therefore, for the follow-up application to be successfully approved, your situation after 6 months of self-employment should be such that you are earning neither too much nor too little. Experience shows that your previous ALG 1 benefits serve as a useful guideline here.
Here’s an interesting point: So, what is the maximum amount you can receive over 15 months in the form of the startup grant and social security subsidy?
Calculation example
| Start-up grant calculation | Marie | Tim |
|---|---|---|
| Gross salary (monthly) | 3.500 € | 5.000 € |
| Old/new federal states | old | new |
| Income tax class | I | II |
| Children | Yes | No |
| ALG1 entitlement | 1.515 € | 1.885 € |
| 1st phase: 6 months | 1,515 € + 300 € = 1,815 € per month | 1,885 € + 300 € = 2,185 € per month |
| 2nd phase: 9 months | 300 € per month | 300 € per month |
| Total amount of start-up grant | 13.590 € | 15.810 € |
As a rule, the start-up subsidy for most founders is between €10,000 and €15,000, depending on the last gross salary and whether the follow-up application for a continuation of the social security subsidy is approved. In principle, this provides a good financial foundation for a somewhat carefree start to self-employment, which you should definitely take with you.
