Apply for insolvency benefits

If your employer is insolvent and can no longer pay your wages, you can apply for insolvency benefits.

Your employer is experiencing financial difficulties and is therefore withholding your pay. If a so-called insolvency event then occurs, you are entitled to insolvency benefits from that point on. Such an insolvency event can consist, for example, of insolvency proceedings being opened against your employer. You can use the insolvency benefits to compensate for your loss of wages for a maximum of 3 months.

Insolvency benefit is paid retroactively. The obligation to pay contributions to unemployment insurance is not a prerequisite. Marginally employed persons, interns, students, pensioners, and trainees can receive insolvency benefit. In the case of, for example, managing partners, partners in a GmbH, or relatives of the employer, employee status must be proven in order to be entitled to insolvency benefit.

You can only receive it for the wages that were not paid to you in the last 3 months of the employment relationship prior to the insolvency event. If your employment relationship was terminated earlier, the insolvency benefit period covers the last 3 months of your employment relationship. 

You will receive exactly as much insolvency benefit as your most recent net earned income. However, the contribution assessment ceiling of unemployment insurance forms the upper limit. The extent to which special payments (such as Christmas bonus) can be reimbursed via insolvency benefit depends on the regulations in your employment contract and must be examined on a case-by-case basis. 

If your employer fails to pay social security contributions due to insolvency, the Employment Agency will cover these upon application by the collection agency (health insurance fund). Outstanding contributions will be paid for the last 3 months of your employment relationship prior to the insolvency event. 

Further information can be found on the Federal Employment Agency website.

Apply for insolvency benefits at the Employment Agency. You can submit the application in paper form or electronically.

Submit application in paper form:

• You can get the application form at any employment agency or on the website of the Federal Employment Agency.
• Complete the application in full and submit it signed, including the attachments, to your employment agency.
• For final processing, the insolvency benefit certificate is required.
  • The insolvency benefit certificate is issued by the insolvency administration or by your company. It is requested by the Employment Agency. 
  • To speed up the process, you can also obtain the insolvency benefit certificate yourself from the insolvency administrator or your company and attach it directly to the application. The form is also available at any employment agency or via the internet.
• The Employment Agency will review your application and documents. You will receive a notice regarding the decision on your application from the Employment Agency. 

Apply for insolvency benefits online:

• Open the "eServices" portal on the website of the Federal Employment Agency.
• Log in with your user ID and access the application for insolvency benefits. 
• Complete the online application process, upload all documents as attachments, and submit the application.
• The Employment Agency will review your application and documents. You will receive a notice regarding the decision on your application from the Employment Agency.

• Objection
• Lawsuit before the social court