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Applying for Insolvency Benefit: Where and How Do I Submit the Application?

You apply for insolvency benefit (Insolvenzgeld) at the Employment Agency (Agentur für Arbeit) responsible for the location of your insolvent employer – online through your account on arbeitsagentur.de or with the "Application for Insolvency Benefit" (Antrag auf Insolvenzgeld) form by mail. The deadline is two months from the insolvency event and it is a strict deadline: if you miss it, you lose your entitlement. You receive the missed net wage from the last three months of your employment as a one-time payment. Anyone who was employed in Germany subject to social security contributions is entitled – regardless of nationality.

Where exactly do I need to submit the application?

The application goes to the Employment Agency (Agentur für Arbeit) responsible for your employer's location – not necessarily the one where you live. You have two options:

  • Online: through your user account on arbeitsagentur.de. There you start the "Application for Insolvency Benefit (employees)" (Antrag auf Insolvenzgeld) and upload the documents.
  • On paper: print the form (form BA 031800), fill it in, sign it, and send it with the supporting documents by mail to the responsible agency. The form is also available at every Employment Agency office.

In an opened insolvency proceeding, the insolvency administration (Insolvenzverwaltung) issues the so-called insolvency benefit certificate (Insolvenzgeldbescheinigung). Without this certificate, the agency cannot calculate your insolvency benefit – so applications usually go through the administration or the pre-financing company.

By when does the application need to arrive?

The deadline is two months from the insolvency event and it is a real strict deadline (Ausschlussfrist). After that, the entitlement is gone – no exceptions. One of these three cases counts as an insolvency event:

  1. the opening of insolvency proceedings over your employer's assets,
  2. the rejection of the insolvency petition due to insufficient assets (§ 26 InsO), or
  3. the complete cessation of business operations in Germany, if insolvency proceedings are clearly not possible due to insufficient assets and no application was filed.

Important: If you only found out later that insolvency proceedings had been opened, the two-month deadline only starts from when you became aware of it. You must state and explain this in the application.

I haven't received wages for two months — what do I do now, specifically?

No wages doesn't automatically mean the insolvency is already official. Insolvency benefit is only available once one of the three insolvency events has occurred. Proceed as follows:

  1. Assert your claims in writing. Demand your outstanding wages from your employer in writing and set a deadline. This secures your claims.
  2. Collect evidence: employment contract, pay slips, bank statements showing the missing wages.
  3. Ask the insolvency court / the administration whether and when proceedings will be opened. Only then does your two-month deadline start running.
  4. Check for an advance payment: If proceedings haven't been decided yet, but insolvency is clearly evident, you can request an appropriate advance payment on the expected insolvency benefit in the application. To do this, fill in the section on outstanding wage claims (item 19).

If you become unemployed due to the insolvency, register as unemployed at the same time and apply for unemployment benefit (Arbeitslosengeld). Both are possible in parallel; the unemployment benefit is offset against the insolvency benefit as an advance payment for the overlapping period.

How much insolvency benefit will I get?

Insolvency benefit replaces the net wage you would have received for the last three months before the insolvency event. Special payments such as Christmas bonus, additional holiday pay, or overtime compensation can also be taken into account.

The amount is capped by the contribution assessment ceiling for unemployment insurance (Beitragsbemessungsgrenze der Arbeitslosenversicherung): in 2026 it is uniformly 8,450 € gross per month nationwide. Earnings above this ceiling are not taken into account for insolvency benefit.

Insolvency benefit is tax-free, but is subject to the progression clause (Progressionsvorbehalt) – meaning it can increase the tax rate on your other income and must be stated in your tax return. If the employer doesn't pay social security contributions due to the insolvency, the Employment Agency covers these for the last three months; your health insurance fund (Krankenkasse) submits its own separate application for this.

What documents do I need for the application?

Include the following with your application:

  • Employment contract and current pay slips,
  • proof of outstanding wages (e.g., bank statements),
  • the insolvency benefit certificate (Insolvenzgeldbescheinigung) from the insolvency administration, or a statement from the employer, payroll department, or works council about the outstanding amounts,
  • your bank account details and, if applicable, wage tax information,
  • for dismissal: the letter of termination, or for other types of ending (termination agreement, expiry of term), the corresponding proof.

Family members who worked in the company, as well as managing shareholders, additionally need the appropriate supplementary forms (for family members or shareholders/managing directors).

The application covers several pages and sometimes supplementary forms. Anyone who wants help filling it out can use the HalloAmt assistant, which goes through the questions in German, Ukrainian, Arabic, and other languages and generates the finished PDF.

Am I entitled to insolvency benefit with a residence permit?

Yes. Under § 165 SGB III, the right to insolvency benefit (Insolvenzgeld) depends on whether you were employed in Germany – not on your nationality. Everyone in a job subject to social insurance contributions can apply for insolvency benefit (Insolvenzgeld). This applies equally to people working here with a residence permit.

Specifically, by status:

  • Residence permit with work permit (Aufenthaltserlaubnis) (e.g. for employment, skilled workers, family reunification with permission to work): full entitlement, if the job was subject to social insurance contributions.
  • Refugees from Ukraine (§ 24 AufenthG) and recognised persons with protection status: full entitlement, as long as they were regularly employed.
  • Permission to stay during the asylum procedure (Aufenthaltsgestattung) or Duldung with a work permit: entitlement exists if the job was allowed and subject to social insurance contributions.
  • EU citizens: don't need a work permit anyway and have the same entitlement as German employees.

What always matters is that your work was allowed and that contributions were paid (even if the employer failed to pay the insolvency levy – this does not affect your entitlement). Even in the case of an insolvency event abroad, employees who worked in Germany are entitled.

In addition to the usual documents, you should include:

  • a copy of your residence permit (Aufenthaltstitel) / permission to stay (Aufenthaltsgestattung) or Duldung, with the note about permission to work,
  • if available, the work permit or additional sheet from the immigration office (Ausländerbehörde).

Important and honest: With some residence permits, the right to stay is tied to the specific job. If that job ends because of the insolvency, this can affect your residence status. The insolvency benefit (Insolvenzgeld) claim itself is not affected – but you should clarify the residence law side promptly with the immigration office (Ausländerbehörde) or a migration counselling service.

What happens after I apply?

The responsible employment agency (Agentur für Arbeit) checks your documents. If all requirements are met, it confirms this to you in writing and pays out the insolvency benefit (Insolvenzgeld) as a single lump sum. Processing often depends on the insolvency court – the employment agency has no influence over when the proceedings are decided, which is why it can take a while between applying and payment. For your tax return, you will receive a certificate confirming that the payment is tax-free.

Frequently asked questions

Where can I apply for insolvency benefit?

At the employment agency (Agentur für Arbeit) responsible for the location of your insolvent employer. You can apply online through your jobsuche account at arbeitsagentur.de, or by sending the printed form "Antrag auf Insolvenzgeld" (application for insolvency benefit) by post.

How much time do I have to apply?

Two months from the insolvency event. This is a strict deadline – if you miss it, you lose your entitlement. If you only found out about the insolvency later, the deadline starts from the day you found out; you must explain this in your application.

How much insolvency benefit will I get?

The net wages from the last three months of your job before the insolvency event. There is an upper limit set by the contribution assessment ceiling (Beitragsbemessungsgrenze) for unemployment insurance of 8.450 € gross per month (as of 2026).

Am I entitled as a foreign employee?

Yes. What matters is that you were employed in Germany subject to social insurance contributions – not your nationality. You need a valid work or residence permit that allowed the job; include a copy of your residence permit (Aufenthaltstitel).

What happens if I stop getting paid before the insolvency is official?

You can apply for an advance payment on the insolvency benefit (Insolvenzgeld). To do this, fill in the section about outstanding wage claims (item 19) in the application.

Is insolvency benefit tax-free?

Yes, insolvency benefit (Insolvenzgeld) is tax-free. However, it is subject to the progression clause (Progressionsvorbehalt) and must be stated in your tax return.

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