Germany overhauls Grundsicherung benefits with tougher sanctions

From 1 July 2026 Germany will rename the current Bürgergeld to Grundsicherungsgeld and introduce significantly stricter sanction rules. A single required‑attendance breach can reduce the standard benefit by 30 percent, and repeated missed appointments at jobcentres can trigger monthly reductions of up to 30 percent for three months, with the possibility of a complete loss of entitlement after multiple failures. The reform also raises the earnings ceiling for minijobs to €603 per month, aligning with the planned €13.90 minimum wage.

A new cooperation plan between benefit recipients and jobcentres will become mandatory. It will stipulate personal counselling, training, and concrete job offers as a “red thread” for integration. Failure to follow the plan’s steps will lead to the same benefit cuts. Municipalities warn the new paperwork could strain administrative capacity. The changes are part of the 13th amendment to the Social Code (SGB II) announced in the Federal Gazette on 22 April 2026.