Offsetting Against Bürgergeld: When the Jobcenter May Keep 30 Percent of Your Benefit

Suddenly only around 394 euros arrive in your account instead of the full 563. A thin notice marked "Aufrechnung" (offsetting) is in your mailbox. The Jobcenter is offsetting an old refund claim against your ongoing Bürgergeld. It is allowed to — but only under narrow conditions. And the offsetting notice (Aufrechnungsbescheid) is a separate administrative act you can challenge.

The Essentials in 30 Seconds

• Bürgergeld offsetting at 30 percent by the Jobcenter is regulated in § 43 SGB II: a maximum of 30 % of the applicable standard need (Regelbedarf) may be withheld.
• For a loan (Darlehen) (deposit, initial furnishings, rent arrears), only 10 % are deducted automatically under § 42a SGB II.
• The offsetting notice is an independent administrative act — it can be challenged by appeal separately from the refund notice (Erstattungsbescheid).
• Discretion (Ermessen) is mandatory: in cases of hardship (debt, illness, children) the Jobcenter must lower the rate or suspend the offsetting.
• The appeal deadline is one month from service. After that the notice becomes final.

We review your decision within 24 hours. Free and non-binding.

Why Does This Happen?

An offsetting (Aufrechnung) almost always follows a prior refund notice (Erstattungsbescheid) — for example because the Jobcenter revoked a benefit decision and is reclaiming benefits already paid. Instead of asking you to transfer the money, the Jobcenter deducts the open amount directly from your ongoing Bürgergeld. For you that means: suddenly almost a third of your monthly budget is missing.

Example: Herr Osmani has been receiving Bürgergeld for two years. The Jobcenter has determined a refund claim of 1,900 € because he failed to report a small tax rebate. Shortly afterwards the offsetting notice arrives: 30 % of the standard need, i.e. 168.90 € per month. Herr Osmani now has to cover rent, electricity and groceries from only 394.10 € of standard need. The offsetting runs for about eleven months.

So far, so legally permitted. But: the Jobcenter need not exhaust the 30 %. It must exercise discretion. And this is where many offsetting notices fail in practice. Often they contain only a formula such as "the offsetting takes place in the amount of 30 % of the applicable standard need" — without a single sentence on why the full quota should be appropriate in your case. The notice is open to challenge even if the underlying claim is undisputed.

Your Rights in Concrete Terms

1. The 30 Percent Limit Under § 43 SGB II

The Jobcenter may offset a refund claim against the ongoing standard need (Regelbedarf) — but no more than 30 % of the applicable standard need. This applies per person in the needs community (Bedarfsgemeinschaft), meaning all persons in one household whose income and needs are calculated together.

Calculation example for a single person (Regelbedarf level 1, as of 2025):

• Standard need: 563 €
• 30 % limit: 30 % x 563 € = 168.90 €
• Remaining standard need per month: 563 € − 168.90 € = 394.10 €

The housing costs (Kosten der Unterkunft, KdU) — rent and utilities — are exempt from the offsetting. Only the standard need is reduced, not the rent.

2. The 10 Percent Rule for Loans (§ 42a SGB II)

If the Jobcenter has granted you a loan (Darlehen) — e.g. for a rent deposit, initial furnishings or rent arrears — a different rule applies: under § 42a SGB II the loan is repaid automatically at 10 % of the standard need.

Calculation example loan repayment:

• Loan for rent deposit: 1,200 €
• 10 % repayment: 10 % x 563 € = 56.30 € per month
• Repayment period: 1,200 € : 56.30 € ≈ 22 months

This repayment often starts without a separate notice. Important: 10 % loan and 30 % offsetting cannot be added up indefinitely. The Federal Constitutional Court made clear in its sanctions judgment (BVerfG 1 BvL 7/16) that the standard need secures the dignified subsistence minimum. A deduction that hollows out the subsistence minimum in total is constitutionally questionable.

3. Offsetting Notice = Independent Administrative Act

One of the most important points many overlook: the offsetting notice is a separate administrative act (Verwaltungsakt, VA) within the meaning of § 31 SGB X. That means:

• It needs its own reasoning and its own instruction on legal remedies.
• A separate one-month appeal deadline runs against it.
• A final refund notice does not automatically mean that the offsetting is also final.

You can therefore accept the refund notice and still proceed separately against the specific offsetting (amount, duration, discretion).

4. Reduction of Discretion in Hardship Cases

§ 43 SGB II is a discretionary provision (Ermessensvorschrift). The Jobcenter must weigh: the amount of the claim, the duration of the offsetting, your personal situation. If atypical circumstances are not considered, there is a failure to exercise discretion (Ermessensausfall) or misuse of discretion (Ermessensfehlgebrauch). Typical hardship grounds include:

• serious illness or ongoing therapy
• minor children in the needs community
• existing rent arrears or imminent eviction
• cumulation with an ongoing sanction

In such cases you can apply for a lower rate (e.g. 10 % or 15 %) or a deferral (Stundung). This is not an act of mercy but a question of properly exercised discretion.

5. Distinguishing: Offsetting, Set-off, Attachment

Three terms that are often mixed up:

• Offsetting (Aufrechnung, § 43 SGB II): The Jobcenter offsets its own claim against your Bürgergeld.
• Set-off (Verrechnung, § 52 SGB I): Another social benefit provider (e.g. the pension insurance) forwards its claim to the Jobcenter.
• Attachment (Pfändung): A creditor accesses your account. Protection is offered by the P-Konto (protection account) with the attachment allowance under § 899 ZPO.

The P-Konto protects a monthly basic allowance (2025: around 1,500 € plus supplements for dependents). It is taken into account automatically once you have your current account converted. The conversion is a free right — the bank may not charge a fee for basic attachment protection.

6. Appeal Deadline and Suspensive Effect

You may file an appeal (Widerspruch) against the offsetting notice within one month from service. The appeal generally has suspensive effect (aufschiebende Wirkung) — the Jobcenter may not enforce the offsetting while it is pending. In practice Jobcenters ignore this and deduct anyway. Then an application to restore the suspensive effect at the social court helps, often decidable in emergency proceedings.

Current Case Law

The Federal Constitutional Court clarified in its judgment of 5 November 2019 (BVerfG 1 BvL 7/16) that the dignified subsistence minimum is protected as a fundamental right and reductions of the standard need are only permitted within narrow limits. Although this landmark ruling concerned sanctions, it radiates to any form of reduction — including offsetting. A combined burden from sanction and offsetting must not permanently undercut the subsistence minimum.

The Federal Social Court has held in settled case law that offsetting is an independent administrative act and that the exercise of discretion must be comprehensibly documented [URTEIL-REFERENZ]. A mere reference to "the statutory possibility" is not enough. Case law also demands that when several reduction grounds accumulate (loan repayment plus offsetting plus sanction), an overall assessment must take place [URTEIL-REFERENZ].

How to Proceed Now

1. Note the deadline. Appeal within one month. Keep the envelope — the postmark can be decisive.
2. Check the notice. Is the legal basis stated (§ 43 SGB II or § 42a SGB II)? Is the amount quantified? Is there reasoning on discretion or only formulaic text?
3. Apply for file access (Akteneinsicht). Under § 25 SGB X you may review your benefits file. Often the key to substantiating a hardship case.
4. File an appeal. In writing and signed. Reasoning may follow. The word "Widerspruch" must be clearly recognisable.
5. Request instalments or deferral. In parallel offer a lower rate — e.g. 10 % instead of 30 %. Argue with concrete figures: rent, electricity, children, health.
6. Set up a P-Konto if not already done. This protects against account attachments.

Typical Mistakes to Avoid

• Dismissing the notice as "just information". It is a full administrative act. Whoever does not appeal lives with 30 % less standard need for up to 14 months.
• Failing to demand discretion. If the notice contains no individual weighing, that is a strong angle of attack — but only if used.
• Letting 10 % and 30 % be added up without doing the maths. With several open claims in particular the total reduction can become unconstitutionally high.
• Missing the appeal deadline. Whoever lets a month pass can only file a review application (Überprüfungsantrag) under § 44 SGB X — with significantly narrower chances of success.

Frequently Asked Questions

Do I really have to accept 30 percent?

No. 30 % is the statutory maximum, not the mandatory rate. The Jobcenter can — and must in hardship cases — offset at a lower rate, e.g. 10 % or 15 %. File an application for reduction and support it with your life situation.

Can offsetting and a sanction run at the same time?

In principle yes. But: under the BVerfG judgment 1 BvL 7/16 the dignified subsistence minimum must not be permanently undercut. A cumulation of 30 % sanction and 30 % offsetting would already be 60 % on paper — which is generally untenable. In such cases an appeal is particularly worthwhile.

What happens if my Bürgergeld ends before the claim is settled?

Then the offsetting runs into the void. The Jobcenter can still enforce the remaining claim — by payment demand, if necessary by enforcement. The limitation period is four years (§ 50 Abs. 4 SGB X). The P-Konto protects your basic income in this case.

Can I accept the refund notice and still challenge the offsetting?

Yes. Both are separate administrative acts. If you do not dispute the refund claim on the merits but consider the specific monthly deduction disproportionate, you target the offsetting notice specifically — amount, duration, discretion.

Does the 30 percent limit also apply to the partner in the needs community?

The limit applies per person whose claim is offset. If only your partner has a refund claim, only their standard need is reduced — not the joint household budget. Check the notice for against whom offsetting is directed.

Have Your Decision Reviewed Now

We review your decision within 24 hours. Free and non-binding.

You do not have to simply accept the 30 %. Send us the notice — we will tell you whether the amount is correct, whether discretion was exercised and where an appeal is worthwhile.