Unemployment Benefit Amounts by Type of Termination

Quick Overview

• When calculated based on the previous average monthly net earnings, the benefit for job seekers under 52 years of age is 80% for the first two months, 50% for the next two months, and 40% thereafter. For job seekers over 52 years of age, the 80% rate is paid for the first three months, the 50% rate for the next three months, and 40% thereafter. The statutory maximum benefit amount applies.
• The reason for the termination of employment is no longer a factor.
• Benefits are paid for 5 to 11 months, depending on the applicant’s age at the time of filing the application.

If you’re unsure what benefits you’re eligible for, we can assess your situation during an online legal consultation. Contact us.

What types of employment termination exist?

Before we dive into the details of how unemployment benefits work, let’s first clarify what forms of employment termination actually exist.

• Resignation by the employee —This is when an employee decides to leave their job and submits their resignation.
• Termination by the employer —This typically occurs when the employer terminates the employment relationship for reasons such as reorganization or redundancy.
• Mutual agreement to terminate employment – In this case, both parties agree to end the employment relationship, and the agreement may be based on various reasons. This often occurs when an employee and employer are unable to reach an agreement, and termination of employment is the only possible solution.
• Immediate Termination of Employment – Immediate termination of employment, also known as “termination on the spot,” occurs for serious reasons, such as on the part of the employee due to health issues or on the part of the employer due to failure to fulfill job duties or a violation of a regulation.

The amount of benefits no longer depends on the type of termination

While benefits in the first two months previously amounted to a maximum of 65% of the previous average net earnings, following the amendment to the Employment Act, this figure will now be 80%. This period is, in fact, the most financially challenging for most people. In the following months, the benefits gradually decrease—first to 50%, and then to 40% of the previous wage.

This model is intended to encourage active job searching while ensuring that individuals do not face financial hardship immediately after losing their jobs.

In the case of termination by the employer, unemployment benefits amounted to65% of average net earningsin the first two months (subsequently 50% and 45%), whereas in cases of termination or voluntary resignation without good cause, it wasreduced to 45% forthe entire benefit period. The difference could thus reach up to20 percentage points at the start of the benefit period.

This approach was based on the assumption that voluntarily leaving a job is a matter of personal choice and therefore does not warrant the same level of protection. In practice, however, it often led to unfair outcomes—for example, in situations where an employee left a job that had long been unsuitable or psychologically stressful without meeting the narrow criteria of so-called “serious reasons.”

Starting in 2026, this distinction will be eliminated. Unemployment benefits will now be provided at the same rate regardless of howthe employment relationshipwasterminated.The only decisive criteria remain the job seeker’s age and compliance with the legal requirements for insurance coverage.

If you are unsure of the amount of benefits to which you are entitled in your case, contact us for advice, which you will receive within 48 hours.

When Is a Person Not Eligible for Unemployment Benefits at All?

It is important to know that there are situations in which a job seeker is not entitled to unemployment benefits at all, regardless of whether they have met the required insurance period. According to the Employment Act, entitlement does not arise, in particular, if the employment relationship was terminated by the employer within the last 6 months prior to registration as a job seeker due to a particularly gross violation of obligations arising from legal regulations relating to the work performed.

Typically , this refers to situations where an employee’s employment was terminated immediately or the employee was given notice of termination due to a particularly serious breach of work duties.

Furthermore, a person who is receiving an old-age pension as of the date the benefit is granted is not eligible. Unemployment benefits are intended to bridge a period of unemployment, not to supplement an old-age pension.

The Employment Act also specifies other barriers to eligibility, such as when a job seeker is in certain legal statuses or engages in activities that prevent them from being registered as a job seeker.

Therefore, if an employment relationship ended due to a serious breach of duties or if any of the above-mentioned legal barriers apply, unemployment benefits are not payable at all.

Summary

As of January 1, 2026, voluntary resignation or termination by mutual agreement without serious cause will not, in and of itself, reduce the amount of unemployment benefits. If eligibility requirements are met, the standard rates based on the job seeker’s age and their previous average monthly net earnings apply, up to the statutory limit. However, the manner and reason for the termination of employment may be important for other entitlements, such as severance pay, and in certain cases specified by law, even for the very establishment of the entitlement to benefits. Therefore, it may be helpful to consult with a lawyer before signing an agreement.