Since 1 July 2026 the grace period (Karenzzeit) in Grundsicherung is no longer one uniform protection but two separate rules with different fates. For assets it has been abolished. For housing costs it still exists, but with a ceiling. If you know older texts on Bürgergeld, you should reclassify both parts.
This guide separates what sections 22 and 12 of SGB II (Book II of the Social Code) say, what the Federal Ministry of Labour explained in advance and what is decided case by case at the Jobcenter. The overview of the whole reform is in the hub on the new Grundsicherung (in German).
In short: For housing costs a one-year grace period still applies (section 22(1) SGB II), but costs within it are capped at one and a half times the abstractly appropriate amount. For assets there has been no grace period since 1 July 2026, instead age-based allowances of 5,000 to 20,000 euros apply (last updated November 2026).
Key points
- The housing grace period lasts one year from the month benefits are first received and remains in place.
- During this time rent is no longer recognised without limit, but at most up to one and a half times the abstractly appropriate costs.
- The asset grace period is abolished. The age-based allowance applies from the start.
- For owner-occupied property a one-year grace period remains, in which the size limits do not apply.
- The legal basis is the 13th Amendment Act to SGB II of 16 April 2026, in force since 1 July 2026.
What is the grace period in Grundsicherung?
The grace period is a time at the start of benefit receipt in which the Jobcenter applies certain checks more leniently. Bürgergeld had it for housing costs and for assets. It was meant to stop people in an acute crisis from having to move at once or use up their savings. With the new Grundsicherung the legislator treated the two parts differently.
Today section 22(1) SGB II governs accommodation and section 12 SGB II governs assets. In the statute the benefit is called Grundsicherungsgeld. For a comparison of what changed overall, see Bürgergeld or the new Grundsicherung (in German).
Does the grace period for rent still apply?
Yes. Under section 22(1) SGB II the grace period for accommodation begins in the month of first benefit receipt and lasts one year. Interruptions of at least one month extend it by the months without benefits. A new grace period starts only after three years without benefits under SGB II or SGB XII.
What is new is the cap. If actual costs exceed one and a half times the abstractly appropriate amount, they are not recognised. The Federal Ministry of Labour describes this in its questions and answers of 5 March 2026: the grace period is kept, but housing costs are capped during the one-year period. One and a half times means a 50 percent surcharge on the local appropriateness limit.
The statute provides for exceptions. During the grace period higher costs can be recognised if they are unavoidable or arise in households with children. In addition, two cost-reduction rules already apply in the grace period: costs count as inappropriate if a local per-square-metre ceiling is exceeded or if the rent exceeds the permitted level under the rent brake rules (sections 556d to 556g of the Civil Code, BGB). In that case the landlord must be asked to correct the rent.
What does this look like in a worked example?
Assumption: A single person receives Grundsicherungsgeld for the first time. The Jobcenter applies an abstractly appropriate gross cold rent of 520 euros for the area. The actual rent is 900 euros (last updated November 2026, simplified calculation without heating costs).
| Item | Amount |
|---|---|
| Abstractly appropriate rent (assumption) | 520 euros |
| Ceiling in the grace period (one and a half times) | 780 euros |
| Actual rent | 900 euros |
| Recognised in the grace period (no exception) | 780 euros |
| Difference you pay yourself | 120 euros a month |
After the grace period ends the appropriateness limit itself applies. The Jobcenter then usually asks you to reduce costs. Excessive costs are usually recognised for six months at most while a reduction is impossible or unreasonable. The ministry’s own example also shows a reduction to the appropriateness limit after one year. The actual limits are set by the local authority, the figures above are chosen for illustration only.
What applies to assets now that the grace period is gone?
For assets the grace period is abolished. The Federal Ministry of Labour states that the grace period for taking assets into account is being abolished. Instead, section 12(2) SGB II provides a per-person allowance that depends on age. It is checked at the start of benefit receipt. The market value at the time of the application is decisive.
| Age | Allowance per person |
|---|---|
| up to age 30 | 5,000 euros |
| from age 31 | 10,000 euros |
| from age 41 | 12,500 euros |
| from age 51 | 20,000 euros |
For young adults this means noticeably lower protection than a grace period with a high flat amount. If you have savings from a side job or from your studies, compare them with the allowance for your age before you apply. The amounts, protected items and a worked example are in the guide Asset allowance under Grundsicherung (in German).
What happens to owner-occupied property?
A grace period remains for owner-occupied property. During the one-year period under section 22(1) SGB II the property is disregarded regardless of the statutory size limit. Afterwards the limits of 140 square metres for a house and 130 square metres for a condominium apply, increased by 20 square metres for each person beyond four occupants (section 12 SGB II). For most students and career starters this rarely matters, for heirs or families in their own home it can be decisive.
What does the change mean for students and career starters?
For students whose course is eligible for BAföG in principle, the general exclusion in section 7(5) SGB II applies first. The grace period only matters once an entitlement actually exists, for example after graduating or dropping out. See the guide New Grundsicherung for students (in German). For career starters claiming benefits for the first time after training or studies, housing costs are often the bigger item. The rules for people under 25 who want to move are in Grundsicherung under 25 and moving (in German).
If you are also asking about housing benefit, see our guide Student housing benefit. Whether housing benefit can be considered alongside Grundsicherungsgeld is decided by the responsible office in each case.
Frequently asked questions
Is the grace period in Grundsicherung abolished?
Only partly. For assets it has gone. For housing costs it remains, but with the ceiling of one and a half times the abstractly appropriate costs.
Does the Jobcenter pay my full rent during the grace period?
Not necessarily. The actual costs are recognised at most up to one and a half times the appropriateness limit. Exceptions apply for unavoidable costs and in households with children.
When does the grace period start again?
Under section 22(1) SGB II only after three years without benefits under SGB II or SGB XII. Short interruptions extend the running grace period by the months without benefits.
Does this apply to heating costs as well?
Heating costs are also recognised at an appropriate level under section 22(1) SGB II. The rules for reducing excessive heating costs differ from those for cold rent. How the Jobcenter proceeds is described in Housing costs under Grundsicherung (in German).
What to do now
- Find the appropriateness limit for your place of residence, the local authority publishes it.
- Calculate one and a half times that limit and compare it with your warm rent and heating costs.
- Add up your assets on the day of the application and compare them with the allowance for your age.
- Have your tenancy agreement, service charge statement and bank statements ready for the application.
- For questions about financial planning after your studies you can get personal support at how we work (in German).
Related guides
- New Grundsicherung since July 2026: what young adults need to know (in German)
- Asset allowance under Grundsicherung: what changed since July 2026 (in German)
- Housing costs under Grundsicherung: how the Jobcenter checks rent (in German)
- Grundsicherung under 25 and moving: when rent is covered (in German)
- Switching from Bürgergeld to Grundsicherung: what recipients should do (in German)
Sources: Section 22 SGB II, gesetze-im-internet.de (in German, last updated November 2026); Section 12 SGB II, gesetze-im-internet.de (in German, last updated November 2026); Questions and answers on the reform of Grundsicherung, Federal Ministry of Labour (in German, 5 March 2026); Amendment record, 13th SGB II Amendment Act, Federal Law Gazette 2026 I No. 107 (in German, last updated November 2026); Applying for Grundsicherungsgeld, Federal Employment Agency (in German, last updated November 2026).
Last updated: November 2026. This guide is general information, not individual advice.
