Arbeitslosengeld and how it's calculated

6 posts in this topic

Hey folks, I was just made redundant and was offered a settlement. My understanding is that unemployment payments are based on the average of the last 12 months salary (was at the firm for 8+ years without interruption). 

My question is this: If I earned a EUR61k base, a EUR11k bonus and a EUR98k settlement in the 12 months months ("the assessment period") preceding the first date of unemployment, would my average be based on my average monthly income of EUR13,750 (base + bonus + payout / 12)? Or just on the average monthly salary based on my basic salary which would be EUR5.1k? All payments are treated like taxable income.

I understand that in either case I will be either relatively close to the cap or a mile above it. I was just wondering if someone could offer clarity as the difference could be as much as EUR300 per month for me.

Thanks in advance for your help, Toytowners!

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Thanks Lunasuenos.. so I wonder why I have always paid unemployment tax on my December bonus salary if it doesn't count towards any kind of unemployment payment?

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Actually i believe i am wrong if unemployment tax was witheld i think it might be included into the annual salary for alg1.  in my case annual salary exceded the taxation cap already so it was not. But your salary does not hit the limit. For certain seperation pay is not. A quick email to arbeitsampt and they will let you know. The actual calculation sheet they send you will come quickly one you make the application and it will break down the rate and computation

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Thanks again. It's my understanding that the severance pay would also be a one time payment and would be taxed as regular income comprised of severance, a bonus and final monthly payment. I still months to go until the end of my contract and although I'm registered with the Arbeitsamt, I'm not sure they can provide me with any numbers at this time. 

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