Do I get the subsidy if I am unemployed or not working because of a child?
Last updated: · under the rules from 1 January 2027 · Publisher: INTERNA · responsible: Marc A. Schnitzler, in mortgage financing since 2005
Often yes. If you receive unemployment benefit (Arbeitslosengeld I), you are subsidised as normal. If you receive citizen’s income (Bürgergeld, now called basic income support, Grundsicherungsgeld), you are subsidised if immediately before you worked in a job with pension insurance or received unemployment benefit I. In the first three years after a child is born, you are subsidised yourself, even if you have never worked. After that your spouse helps: if your spouse is subsidised, you get up to €175 basic subsidy a year through them.
Who is subsidised in which situation
| Your situation | subsidised yourself? | what applies |
|---|---|---|
| Unemployment benefit I | yes | full subsidy, the employment agency continues to pay your pension contributions |
| Bürgergeld, directly after a job with pension insurance or after unemployment benefit I | yes | you are treated as if you were still insured |
| Bürgergeld, without pension insurance directly before, for example self-employed | no | through a subsidised spouse, up to €175 a year |
| Child under three, you are not working | yes | 36 months from the month after the birth, the federal government pays your pension contributions |
| Child older than three, you are not working, married | through your spouse | up to €175 basic subsidy and up to €300 child subsidy, depending on how much your spouse pays in |
| Child older than three, you are not working, not married | no | no new subsidies, the money in the contract stays yours |
Subsidised through your spouse means: your spouse is eligible and pays into their own subsidised contract. You also have your own contract and pay in at least €120 a year. How high your subsidies are depends on your spouse’s payments: if your spouse pays in at least €350 a year, that is about €30 a month, you get the full €175 basic subsidy and €300 per child. Each additional child starts a new period of three years.
Example: mother, one child under three, €25 a month
| per year | |
|---|---|
| Your own contribution | €300 |
| Basic subsidy | €150 |
| Child subsidy | €300 |
| from the state in total | €450 |
In this example the state adds one and a half times as much as you pay in yourself. If you manage €150 a month, you get up to €540 basic subsidy, with one child €840 in total. Calculated without interest and contract costs.
What you should do
- Apply for the child-raising period (Kindererziehungszeit): Have the period entered with the Deutsche Rentenversicherung, the German statutory pension insurance. Otherwise the subsidy may be reclaimed later.
- Keep paying in if you can: The subsidy is paid for every year in which you pay in at least €120, that is €10 a month. A year without payments cannot be made up later.
- Do not cancel: If it is not possible right now, pause your payments into the contract. The previous subsidies remain. If you cancel and have the balance paid out, you have to pay them back.
And with Bürgergeld?
Subsidised pension savings and a home of reasonable size that you live in yourself are usually protected when you receive Bürgergeld. The Jobcenter decides what applies in your case. Whether you get a loan depends on your income. During this time, saving with subsidies is usually the right first step.
How much subsidy does your household get? The subsidy calculator works out in one minute how much subsidy you can get. An advisor then checks with you whether everything fits your situation. This conversation is free of charge and in English.
Calculate your subsidyFrequently asked questions
Do I get the subsidy with unemployment benefit?
Yes. With unemployment benefit I, the employment agency continues to pay your pension contributions, so you are subsidised as normal: up to €540 basic subsidy a year for €150 a month and up to €300 per child.
Do I get the subsidy with Bürgergeld?
Yes, if directly before Bürgergeld you worked in a job with pension insurance or received unemployment benefit I. If you were not insured in the pension insurance directly before, for example as a self-employed person, you only get the subsidy through a subsidised spouse, up to €175 a year.
Am I subsidised as a mother without a job?
Yes, in the first three years after the birth, even if you have never worked, because the federal government pays your pension contributions during this time. After that you get the subsidy through your husband, as long as you are married and he is subsidised.
What happens to my contract if I no longer get a subsidy?
The money in the contract and the previous subsidies stay yours. You can pause your payments into the contract and pay in again later. You only get new subsidies again once you are eligible.
Read more
Sources
- Federal Ministry of Finance: questions and answers on the reform of private pensions (in German)
- Income Tax Act § 10a: who is eligible (in German)
- Social Code Book VI § 56: child-raising periods (in German)
- Social Code Book VI § 58: credited periods (in German)
- Federal Law Gazette 2026 I No. 156: Altersvorsorgereformgesetz, the pension reform act (in German)
The money in the contract is meant for your retirement and your own home. If you have the subsidised savings paid out early, for example by cancelling the contract, you have to pay back the subsidies and tax benefits.
The examples explain the legal rules in simplified form. They do not replace tax or legal advice for your personal situation. Contract costs and interest are not included. This page was created with the help of artificial intelligence and translated from the German original. INTERNA is responsible for its content. More information