Grundsicherungsgeld and self-employment: what applies since July 2026

Since 1 July 2026, Bürgergeld is called Grundsicherungsgeld (basic income support). If you start a business from benefits, the routes stay the same: AVGS coaching, Einstiegsgeld and grants for purchases. What is new: placement in a job has priority again, even over coaching. This priority explicitly does not apply to Einstiegsgeld for a business start-up.

No legal entitlement: The employment agency or job centre alone decides on the AVGS, at its own discretion.

Whether AVGS coaching could work for you, the Fit Check shows you after five questions. Already have a voucher? Here’s how to redeem it.

Contents

1. What changed on 1 July 2026
2. What stays the same for a business start-up
3. Placement priority and your start-up
4. Assets and savings for your start-up
5. Your duties during coaching
6. Frequently asked questions about Grundsicherungsgeld and self-employment
7. Your next step

What changed on 1 July 2026

The Bundestag and Bundesrat passed the law in March 2026. According to the Federal Government (in German), it came into force in stages from 1 July 2026. These changes affect you if you want to start a business while receiving benefits (all sources in German):

Topic	What applies now	Source
Name	Grundsicherungsgeld instead of Bürgergeld	§ 19 SGB II
Placement	has priority again, also over measures	§ 3a SGB II
Assets	no Karenzzeit any more, exemption by age	§ 12 SGB II
Kooperationsplan	binding, no conciliation procedure any more	§ 15 SGB II, BA
Breaches of duty	reduction by 30 % for three months	§ 31a, § 31b SGB II
Appointments	from the second missed appointment, 30 % for one month	§ 32 SGB II

According to the Bundesagentur für Arbeit (BA, the Federal Employment Agency, in German), you do not need a new application if you already receive benefits. Your contact person stays the same, and ongoing measures continue. Previous decisions remain valid in substance, even if they still say “Bürgergeld”.

What stays the same for a business start-up

The reform has not cut the funding routes into self-employment from basic income support. There are three:

• The Jobcenter (the local office that handles your benefits) can issue you an AVGS for start-up coaching (§ 16 SGB II with § 45 SGB III, in German). The guide How to apply for AVGS explains how this works.
• After the start, it can pay Einstiegsgeld for up to 24 months (§ 16b SGB II, in German).
• For necessary purchases, there are grants of up to €5,000 or loans, and after the start also consulting (§ 16c SGB II, in German).

The Gründungszuschuss (start-up grant) is still not available in basic income support. It is tied to unemployment benefit. The guide AVGS and the start-up grant explains how Einstiegsgeld and the start-up grant differ.

Placement priority and your start-up

§ 3a SGB II (in German) is titled “Vorrang der Vermittlung” (placement priority). Under it, placement in training or work takes priority over Grundsicherungsgeld. It also takes priority over the other integration benefits, including coaching through an AVGS.

The law names two exceptions:

• A benefit can take priority if it is more likely than direct placement to lead to lasting integration into work. This applies in particular to people under 30.
• The priority does not apply in relation to the Einstiegsgeld for self-employment.

So for AVGS coaching, the Jobcenter weighs up whether it leads to more lasting work than a job would. In doing so, it considers your suitability, your life situation and how lasting the integration is likely to be (§ 3 (1) SGB II, in German). There is no legal entitlement to the voucher.

Assets and savings for your start-up

Until now, assets were largely disregarded in the first year of receiving benefits. This Karenzzeit has been abolished. From the first day, each person now has an exemption that depends on age (§ 12 (2) SGB II, in German):

Age	Exemption
up to 30	€5,000
from 31	€10,000
from 41	€12,500
from 51	€20,000

Unused exemptions of other members of your Bedarfsgemeinschaft (household) are transferred. Reasonable household goods and a reasonable car still do not count. If you have put aside savings for your start-up above the exemption, you must use them before Grundsicherungsgeld. Plan for this in your financial plan.

Your duties during coaching

At the Jobcenter, you draw up a Kooperationsplan with your Integrationsfachkraft (integration specialist). It records your integration goal, your own efforts and which integration benefits are an option, such as coaching (§ 15 (2) SGB II, in German). According to the Bundesagentur, you have to stick to it.

If you drop out of a measure without good reason, that counts as a breach of duty (§ 31 SGB II, in German). Your Grundsicherungsgeld is then reduced by 30 % of the Regelbedarf (standard rate) for three months (§ 31a, § 31b SGB II). Once you meet your duties again, the reduction is lifted, at the earliest after one month. You have to attend appointments you are invited to. From the second missed appointment without good reason, it is 30 % for one month (§ 32 SGB II).

Frequently asked questions about Grundsicherungsgeld and self-employment

Do I have to apply for anything again because of the reform?

No. According to the Bundesagentur, your benefit continues. You only submit a Weiterbewilligungsantrag (application for continued payment) when your approval period ends.

Is my approved voucher still valid?

According to the Bundesagentur, ongoing measures continue as usual, and previous decisions remain valid in substance. Still, check the deadlines on your voucher.

Can I get a start-up grant while on Grundsicherungsgeld?

No, it is tied to unemployment benefit. For a full-time start-up, the Jobcenter can pay Einstiegsgeld.

Can I start a business on the side while receiving Grundsicherungsgeld?

Yes. Your income is counted against the benefit (§ 11 SGB II, in German), and you have to tell the Jobcenter about the work (§ 60 SGB I, in German). More on this in the guide side business or full-time self-employment.

Your next step

The AVGS self-test shows whether you are generally eligible for a voucher. In the Fit Check, you can check whether our AVGS start-up coaching suits your plans. The coaching is in German and requires German at B2 level or above. The Jobcenter decides on the voucher at its own discretion.