Germany to replace Bürgergeld with new Grundsicherung system from July 2026

From 1 July 2026 Germany will phase out the Bürgergeld and introduce a new basic‑security benefit called Grundsicherungsgeld. The reform, enacted by the 2026 law on the restructuring of basic security for job seekers, tightens sanctions for missed appointments, removes the one‑year asset‑free period, caps accommodation costs and reinforces a priority on rapid job placement and work requirements. Monthly benefit levels remain unchanged, but the legal framework shifts toward greater demand for employment and reduced protective rights.

Self‑employed persons and freelancers are also covered. Eligibility requires that their net profit falls below the calculated need, that they are able to work at least three hours per day, that their assets stay within set limits and that they reside in Germany. Benefits are initially granted for six months on the basis of estimated income and expenses, after which actual earnings are reconciled, potentially leading to adjustments or repayments. Claimants must first exhaust other priority benefits such as child or parental allowances before receiving Grundsicherungsgeld.