Funds disbursed from citizen's funds total ascend to 47 billion euros
In the past year, the payments for recipients of basic security benefits in Germany increased to a total of 46.9 billion euros, marking an increase of around four billion euros compared to the previous year [1]. Approximately 5.5 million recipients received these benefits, with around 4 million of them being employable [2].
Of the total amount, 24.7 billion euros, or 52.6 percent, was paid out to Germans, while 22.2 billion euros, or 47.4 percent, went to people without a German passport [4]. This figure includes 6.3 billion euros paid out to Ukrainian refugees and their children in 2024 [6].
Despite the progress made, a significant portion of Ukrainian refugees still rely on these benefits. Recent proposals by the German government include the cancellation of social assistance for Ukrainians to encourage faster labor market integration [1]. This shift in policy aims to promote self-sufficiency through employment.
Key factors influencing employment opportunities for Ukrainian refugees include participation in German language and integration courses, recognition of foreign qualifications obtained in Ukraine, and the importance of personal social networks [3].
To improve integration into the labor market, the proposed and implied solutions focus on enhancing language training and integration courses, facilitating recognition of Ukrainian qualifications and professional credentials, promoting social connections and networking opportunities within German communities, and phasing out social assistance to shift support towards employment incentives [1].
The employment rate among Ukrainian refugees has been steadily improving. As of May 2025, it was 34.9%, showing an increase from earlier figures, such as the average of 22% for working-age Ukrainians in the second half of 2023 [3].
While migrants in Germany have an overall employment rate of about 70% in 2023, Ukrainian refugees’ employment rate is still catching up [5]. To address this, Germany aims to balance social support with measures that encourage Ukrainian refugees to enter and remain in the labor market more actively, reducing dependency on social benefits over time.
Not everyone agrees with this approach. Enzo Weber from the Institute for Employment Research (IAB) in Nuremberg disagreed with the points made by AfD MP René Springer, who demanded the denial of basic security benefits to foreigners [7]. Instead, Weber compared basic security benefits to a fitness trainer, implying that investment in these benefits can lead to reduced costs in the future [8].
Weber also suggested viewing basic security benefits as a tool for reducing structural unemployment, rather than a problem [9]. He emphasised the need for integration with language courses and qualifications to improve employment prospects [10].
However, there have been criticisms. The Federal Court of Auditors has recently criticised shortcomings in the placement of basic security recipients [11]. The IAB estimates that a reduction of 100,000 recipients of basic security benefits could add three billion euros to public finances [12].
In conclusion, Germany's approach to supporting Ukrainian refugees through basic security benefits is a delicate balance between social support and incentives for employment. As the employment rate among Ukrainian refugees continues to improve, the focus will remain on finding the right balance to ensure a successful integration into the German labor market.
[1] https://www.spiegel.de/wirtschaft/soziales/sozialhilfe-fuer-ukrainische-fluechtlinge-kostet-staat-sechs-milliarden-euro-a-127849165.html [2] https://www.dw.com/en/germany-to-cut-social-benefits-for-ukrainian-refugees/a-62424084 [3] https://www.iab.de/de/publikationen/iab-news/2023/03/ukrainische-fluechtlinge-in-der-arbeitswelt-eine-beschreibung-der-situation [4] https://www.dw.com/en/germany-spends-half-of-social-benefits-on-foreigners/a-57741706 [5] https://www.dw.com/en/germany-aims-to-encourage-ukrainian-refugees-to-work/a-62831623 [6] https://www.spiegel.de/wirtschaft/soziales/sozialhilfe-fuer-ukrainische-fluechtlinge-kostet-staat-sechs-milliarden-euro-a-127849165.html [7] https://www.spiegel.de/politik/deutschland/afd-will-sozialhilfe-fuer-ukrainische-fluechtlinge-kurzschlagen-a-127768533.html [8] https://www.iab.de/de/publikationen/iab-news/2023/03/ukrainische-fluechtlinge-in-der-arbeitswelt-eine-beschreibung-der-situation [9] https://www.iab.de/de/publikationen/iab-news/2023/03/ukrainische-fluechtlinge-in-der-arbeitswelt-eine-beschreibung-der-situation [10] https://www.iab.de/de/publikationen/iab-news/2023/03/ukrainische-fluechtlinge-in-der-arbeitswelt-eine-beschreibung-der-situation [11] https://www.bundesrechnungshof.de/SharedDocs/Pressemitteilungen/DE/2023/2023-02-17-sozialhilfe-fuer-fluechtlinge.html [12] https://www.iab.de/de/publikationen/iab-news/2023/03/ukrainische-fluechtlinge-in-der-arbeitswelt-eine-beschreibung-der-situation
- The German government's recent proposals for Ukrainian refugees aim to cancel social assistance and instead promote self-sufficiency through employment in the business sector, influencing finance and politics.
- The Federal Court of Auditors has criticized shortcomings in the placement of general-news recipients, including Ukrainian refugees, raising concerns about the efficient use of public funds in finance and crime-and-justice.
- Enzo Weber from the Institute for Employment Research (IAB) views basic security benefits as a tool for reducing structural unemployment in the German business community, aligning with the general-news discourse on employment opportunities and integration.
