Earned-income allowance miscalculated by the Jobcenter: How to check your decision

Q: How high is my allowance for a 450 € mini-job?

For 450 € gross from a mini-job, 170 € stays exempt: 100 € basic allowance under § 11b Abs. 2 SGB II plus 20 % of 350 € (the share between 100 and 450 €) = 70 €. The higher tiers only kick in from 520 € and play no role here. In net terms: Of the 450 €, 280 € impact your Bürgergeld entitlement as income.

Q: What do I do if the objection deadline has already passed?

Then the review application under § 44 SGB X remains. It is in principle possible up to one year retroactively, longer for serious calculation errors. You file an informal application with the Jobcenter: "I apply for review of the decision dated [date] under § 44 SGB X." This is particularly worthwhile for ongoing errors stretching over many months.

You work, still receive top-up Bürgergeld — and on the decision it looks as if barely anything of your wage remains? In many cases, this is due to a wrongly calculated allowance tier under § 11b SGB II. This guide shows step by step how to recalculate and what to do if there is an error.

The essentials in 30 seconds

A fixed basic allowance of 100 € of the gross wage stays exempt (§ 11b Abs. 2 SGB II).
On top comes the tier scale under § 11b Abs. 3 SGB II: 20 % between 100 and 520 €, 30 % between 520 and 1,000 € (raised from 20 % to 30 % since 1 July 2023), 10 % between 1,000 and 1,500 € (single) or 1,200 € (with at least one minor child in the household community).
Frequent error: The Jobcenter uses outdated percentages, the wrong cap, or simply miscalculates the tiers.
Example 450 € mini-job: 100 € basic allowance + 70 € (20 % of 350 €) = 170 € exempt.
Objection deadline: one month from receipt of the decision (§ 84 SGG).

We review your decision within 5 minutes. Free and non-binding.

Why does this happen?

The earned-income allowance (Erwerbstätigenfreibetrag) is meant to reward work alongside Bürgergeld. The problem: The calculation is tiered, has two different caps, and was changed in mid-2023.

Errors pile up at exactly this point. Some software modules lag behind the law. Other caseworkers mentally fall back on the old 20 % rate in the middle tier. Yet others reflexively apply the 1,200 € cap, even though the recipient is single and has no child — and would actually be entitled to 1,500 €.

Example: Frau Kowalski, single, works part-time for 850 € gross. The Jobcenter flatly deducts only the 100 € basic allowance and 20 % of the remaining income, setting 250 € as exempt. The correct figure would be: 100 € + 20 % × 420 € + 30 % × 330 € = 283 € exempt. Difference: 33 € per month. Over a year, that is almost 400 € that Frau Kowalski receives too little.

Because the calculation sheets of many decisions are densely printed and barely readable for laypersons, such an error often goes unnoticed for years.

Your rights in concrete terms

Basic allowance 100 € (§ 11b Abs. 2 S. 1 SGB II). The first hundred-euro share of the gross monthly wage always stays exempt. It also replaces the otherwise separately deductible work-related expenses, the insurance flat rate and the commute costs — unless you can prove higher actual costs.
Tier 100 € to 520 € (§ 11b Abs. 3 Nr. 1 SGB II). Of the gross wage portion between 100 and 520 €, an additional 20 % stays exempt. Maximum extra allowance in this tier: 84 € (20 % of 420 €).
Tier 520 € to 1,000 € (§ 11b Abs. 3 Nr. 1b SGB II). Between 520 and 1,000 €, 30 % stay exempt — since the Bürgergeld reform of 1 July 2023. Before that it was 20 %. Maximum extra allowance in this tier: 144 € (30 % of 480 €).
Tier 1,000 € to 1,200 € or 1,500 € (§ 11b Abs. 3 Nr. 2 SGB II). Between 1,000 € and the cap, a further 10 % stays exempt. The cap is 1,500 € for single persons without a minor child in the household community, 1,200 € for everyone else.
Gross wage is the basis. The tier is always applied to the gross wage, not the net wage (§ 11b Abs. 3 S. 1 SGB II). Social security contributions and wage tax are treated separately under § 11b Abs. 1 SGB II — not in the allowance.
Special rates for trainees. For trainees and young persons in voluntary service, special allowances apply (among others § 11b Abs. 2 S. 3 SGB II with a higher basic allowance). Standard software does not always factor these in automatically.
Right to object within one month. The decision becomes final after this deadline expires. Until then you can object free of charge (§ 84 SGG).
Retroactive review application. For ongoing errors, § 44 SGB X applies — up to one year retroactively, longer for serious errors.

Current case law

The Federal Social Court has stressed in several decisions that the earned-income allowance must be granted as a matter of obligation, not discretion. Cuts or flat-rate reductions are inadmissible as long as the recipient actually earns income from employment. The clear separation between the basic allowance under paragraph 2 and the tier allowance under paragraph 3 is also settled in case law. [URTEIL-REFERENZ]

On the question of which cap applies in patchwork or shared-custody constellations, decisions are available that are guided by the actual assignment of the minor child to the household community. If the child predominantly lives in the household of the working parent, the lower 1,200 € cap usually applies — for the other parent the 1,500 € cap. [URTEIL-REFERENZ]

One-off income such as Christmas pay is generally assigned to the respective payout month, not smoothed into a yearly average. Social courts follow these lines consistently — anyone who recalculates their own allowance cleanly and names the error precisely has above-average prospects in objection practice.

What to do now

Pick up the decision. In the calculation sheet, find the line "earned-income allowance" or "allowance for employment". Note the amount the Jobcenter has set.
Determine the gross wage. What matters is the gross wage on the payslip for the month to which the decision relates — not the net payout, not the average over several months.
Recalculate yourself with the tier scale. The formula is always the same:
- Up to 100 €: 100 € basic allowance (in full, even if you earn less).
- 101 € to 520 €: additionally 20 % of the share.
- 521 € to 1,000 €: additionally 30 % of the share.
- 1,001 € to the cap (1,200 € or 1,500 €): additionally 10 % of the share.
Two concrete worked examples to compare.
- 450 € mini-job: 100 € basic allowance + 20 % × (450 − 100) = 100 € + 70 € = 170 € exempt.
- 900 € part-time: 100 € basic allowance + 20 % × (520 − 100) + 30 % × (900 − 520) = 100 € + 84 € + 114 € = 298 € exempt.
Document the difference. If your result does not match the decision, note the exact deviation in euros and the line of the calculation sheet. That will later be the basis of your objection reasoning.
File an objection — in writing, on time. Within one month of receiving the decision. By letter, fax or in person at the Jobcenter. Sample: "I hereby object to the decision dated [date]. Reasoning to follow." That preserves the deadline.
Submit reasoning later. Walk through the calculation step by step, name the correct figure and refer to § 11b Abs. 2 and Abs. 3 SGB II. Attach the current payslip.
Have the decision checked. A second opinion costs nothing — a missed deadline quickly costs several hundred euros.

Avoid typical mistakes

Mistake 1: Tier wrongly calculated. Some Jobcenters apply percentages to the whole income instead of to the difference between the tiers. That sometimes produces significantly too low allowances. The tier is progressive — each tier only applies to the income share within its band.
Mistake 2: Old percentages from before the 2023 reform. Until 30 June 2023, only 20 % applied in the 520–1,000 € tier. Since 1 July 2023 it is 30 %. If the old rate is still being used, up to 48 € per month is missing (10 % of 480 €).
Mistake 3: Wrong cap. Single persons without a child are entitled to the full exhaustion up to 1,500 €. If the lower 1,200 € cap is applied, up to 30 € per month is missing (10 % of 300 €). The reverse error is rarer but also possible.
Mistake 4: Trainee special rates overlooked. For trainees in the household community and voluntary service workers, special allowances apply. These are sometimes simply forgotten in the standard calculation.
Mistake 5: Gross wage wrongly determined. Occasionally the net wage is taken as the basis — that is always wrong. Apportioning one-off payments over several months also does not match the statutory system of § 11b Abs. 3 SGB II if it is to your disadvantage.

Frequently asked questions

How high is my allowance for a 450 € mini-job?

For 450 € gross from a mini-job, 170 € stays exempt: 100 € basic allowance under § 11b Abs. 2 SGB II plus 20 % of 350 € (the share between 100 and 450 €) = 70 €. The higher tiers only kick in from 520 € and play no role here. In net terms: Of the 450 €, 280 € impact your Bürgergeld entitlement as income.

What has changed since the Bürgergeld reform of mid-2023?

Since 1 July 2023, in the middle income tier (520 € to 1,000 € gross) 30 % stays exempt; before that it was 20 %. The 100 € basic allowance and the other tiers remained unchanged. If your decision for a month after July 2023 still calculates 20 % in this tier, it is wrong.

I am single without children — which cap applies to me?

For single persons without a minor child in the household community, the higher cap of 1,500 € applies. Between 1,000 € and 1,500 € gross wage, a further 10 % stays exempt. Only above 1,500 € gross does no tier allowance apply any more. The lower 1,200 € cap only applies to persons with at least one minor child in the household community.

Do Christmas pay or holiday pay count in the allowance calculation?

One-off payments like Christmas or holiday pay are part of the gross wage in the respective payout month. They flow into the tier calculation, so they can help to exhaust higher tiers. Conversely, a one-off payment can cause the cap to be exceeded and the allowance to drop accordingly. How the Jobcenter actually assigns the payment is often challengeable.

What do I do if the objection deadline has already passed?

Then the review application under § 44 SGB X remains. It is in principle possible up to one year retroactively, longer for serious calculation errors. You file an informal application with the Jobcenter: "I apply for review of the decision dated [date] under § 44 SGB X." This is particularly worthwhile for ongoing errors stretching over many months.

I am a trainee — do different allowances apply to me?

Yes. The law provides special rules for trainees, in particular a higher basic allowance. Voluntary services (FSJ, FÖJ, BFD) are also given preferential treatment. If you are a trainee and only see the standard 100 € basic allowance on your decision, that is a clear warning sign — have the decision checked specifically with regard to § 11b Abs. 2 S. 3 SGB II.

Have your decision checked now

If you suspect that your earned-income allowance has been miscalculated, every day matters — the one-month objection deadline runs from receipt of the decision. You do not have to work through the complicated tier scale alone.

We review your decision within 5 minutes. Free and non-binding.

Upload the decision and payslip. We will tell you whether the tier scale under § 11b SGB II has been applied correctly.