What exactly does insolvency benefit cover?
Insolvency benefit (Insolvenzgeld) generally covers the net pay for the insolvency benefit period. It is limited to the applicable contribution assessment ceiling.
Typical components include, for example:
- the current basic salary
- variable remuneration earned during the period, such as commissions
- certain one-off payments, for example pro rata holiday or Christmas bonuses, if they relate to the period or trigger a cut-off date rule
- expenses incurred during the period, such as travel costs
- pay during partial retirement within the statutory framework
Pay components that are not covered by insolvency benefit become insolvency claims. They can be filed for entry in the insolvency schedule. Whether there is later a (partial) payment depends on the available insolvency estate.
For the specific classification in individual cases, the Worstbrock-Group and legal counsel work closely together and coordinate with the employment agency where necessary.
