05.05.2023
Is it more profitable to work or live on social benefits in Germany?

"Why would I want to work in Germany - it's not profitable!" is a phrase we often hear from refugees. We are convinced that this opinion arises from a lack of information. Therefore, in this article, we will describe all the advantages and disadvantages of working in Germany and find out whether it is really so good to stay on social benefits.

So, what is life like with social benefits in Germany?


Let's start with the advantages of living on social security in Germany:

Income: 502 euros for an adult and 250-380 euros for each child.

Housing compensation: the amount varies depending on the Lander.

Social guarantees: health insurance, free education and language courses.

More free time.


And now about the disadvantages of living on social benefits in Germany:

Constant presence in the Jobcentre and the need to report to it.

The need to save money on everything. You have to forget about shopping, comfortable travelling, as well as clubs and entertainment for children on social benefits.

Lack of mobility. You will not be able to move from city to city or travel abroad without the permission of the Jobcentre.

Limited choice and rental housing. Very few property owners agree to rent to people on social security.

Lack of grounds for residence permit extension. Persons who have not expressed a desire to study or work in Germany during their entire stay are not entitled to have their residence permit extended.

The need to attend social work. Persons who refuse to take up employment, but do not have health restrictions and are not studying, may be required to attend social work offered by the Jobcentre.


Now you have at least a little insight into life on social benefits in Germany, we can look at the lives of people who are employed in Germany.


So, the benefits of working life in Germany:

Income: from a minimum of 1500 euros net for full-time work. Retention of child benefits from 290 euros for the maintenance of one child.

Possibility to apply for Wohngeld. Wohngeld is a rental subsidy provided to people with low incomes.

Full mobility. All employed persons in Germany have the right to move freely across the country, change their place of residence and employment.

Social guarantees: health and pension insurance, unemployment insurance, child insurance, free education.

Wider choice of housing: it is easier for employed people to rent housing.

There are grounds for extending temporary residence permits in Germany and the possibility of obtaining a residence permit.

Lack of accountability: employed people do not attend job centres and do not have to report to them.

No need to save money on everything. More opportunities for shopping, personal development and interesting leisure with your children and friends.

Free opportunity to practice the language. As you know, language learners develop best in a language environment.


What are the disadvantages of people employed in Germany? Perhaps the same as those employed anywhere else. But let's list them.


Disadvantages of employment in Germany:

Less time to relax. Of course, employed people have less time for their own leisure.

Lack of full compensation for rent. People employed in Germany can only apply for Wohngeld, a subsidy for rent. Most likely, it will be partial. However, it is always possible to find low-cost housing or social housing through housing communities.

The need to get to the place of work.


This is the end of working life description in Germany. So, let's summarise:

Working life in Germany provides you with all the same social security and opportunities as living on welfare. But as you may have noticed, it has many more advantages and fewer disadvantages.

For example, a significant disadvantage may be the lack of housing compensation. But let's use simple formulas and summarise the numbers.


Single person on social benefits:

Social grant: EUR 502 net

Housing compensation: XXX amount for housing compensation, or just free housing. It depends on the land.

So, 502 euros per month.


Single employed person:

Salary: from 1500 euros net

Rent costs: 500 euros on average per place.

That leaves you with €1000 net per month.


Of course, this is the simplest calculation, and we have not taken into account the rent subsidy, which can increase your net income. Also, we did not take into account child support payments, which are still paid if you work. But even with this minimal calculation, it is clear that working is more profitable.

If you are looking for a job, you can always contact us. We offer direct official employment in Germany.


Thank you for reading our blog!