Arbeitslosengeld II, commonly referred to as Hartz IV, is a German welfare benefit program designed to support individuals who are unemployed or have limited means of subsistence.

Managed by the Federal Employment Agency (Bundesagentur für Arbeit), Arbeitslosengeld II provides financial assistance to eligible individuals, ensuring a basic standard of living and facilitating their reintegration into the labor market. Arbeitslosengeld II is specifically targeted at those who are unable to cover their living expenses or whose income falls below the determined threshold. The program sets forth comprehensive regulations and criteria for determining eligibility, entitling beneficiaries to financial aid that comprises both basic needs (Grundsicherung) and costs of housing (Wohnkosten). To access Arbeitslosengeld II, applicants must undergo a thorough assessment of their income, assets, and living situation. This evaluation takes into account various factors, such as the number of household members, age, health, and employment history. Financial resources, including savings, real estate, and other assets, are considered in the means test to determine the level of assistance. Hartz IV recipients receive a monthly payment intended to cover basic subsistence requirements. The calculation of the benefits is based on a standardized basic rate, which is adjusted annually. Additional allowances may be granted for specific circumstances, such as single-parent households, pregnant women, or individuals with disabilities. Moreover, Arbeitslosengeld II aims to support beneficiaries in their reintegration efforts by offering comprehensive counseling, training, and job placement services. Jobseekers are obliged to actively engage in available employment opportunities, participate in job training programs, and accept suitable job offers. While Arbeitslosengeld II provides substantial assistance, it is subject to ongoing review and evaluation. Recipients are required to report any changes in their circumstances that may affect their eligibility or payment amount, such as changes in income or household composition. Arbeitslosengeld II/Hartz IV plays a vital role in Germany's social welfare system, ensuring that individuals experiencing unemployment or financial hardship have access to essential support while actively pursuing employment opportunities.