Apply for insolvency benefits
Wage replacement benefits provided by the Employment Agency to employees whose employers have become insolvent and can no longer pay wages.
How to proceed
- 1
Submit an application to the Employment Agency
Within 2 months of the commencement of insolvency proceedings or the cessation of operations.
- 2
Submit documentation
Pay stubs, employment contract, court order declaring bankruptcy.
- 3
Receive insolvency benefits
Equivalent to the net pay for the last 3 months prior to the insolvency event.
Required documents
- Pay stubs for the last 3 monthsMandatory
Proof of outstanding wage claims.
Responsible authority
The authority of your main place of residence is responsible.Find authority →
Fees
Varies by case
Processing time
approx. 1 weeks
Official: max. approx. 2 weeks
Online application
In person or by post
Common mistakes
- • The petition was not filed within 2 months of the insolvency event
- • Wage claims not supported by written documentation
Common reasons for rejection
- • The 2-month application deadline has passed
- • The claim did not exist during the 3 months prior to the insolvency event
You can usually file an objection against a rejection.
The essentials before applying
Who is eligible?
Employees whose employer has filed for bankruptcy or is insolvent.
Income limit
The limit varies by household and region – see the table at the responsible authority or in the application assistant.
Processing time
Nationwide: approx. approx. 1 weeks
Success rate
approx. 92.0 % (estimate)
Most common mistakes
- •The petition was not filed within 2 months of the insolvency event
- •Wage claims not supported by written documentation
Common reasons for rejection
- •The 2-month application deadline has passed
- •The claim did not exist during the 3 months prior to the insolvency event
Alternatives
- Check related services in the application assistant
- Use social counselling before applying
If rejected
File a written objection within 30 days – with reasons why the decision is wrong and any missing evidence.
Read more
Handle Apply for insolvency benefits online
Submit your application directly online – without visiting an office.
Start online application