Hartz IV

The Hartz concept, also known as Hartz reforms or the Hartz plan, is a set of recommendations submitted by a committee on reforms to the German labour market in 2002. Named after the head of the committee, Peter Hartz, these recommendations went on to become part of the German government's Agenda 2010 series of reforms, known as Hartz I – Hartz IV. The committee devised thirteen "innovation modules", which recommended changes to the German labour market system. These were then gradually put into practice: The measures of Hartz I – III were undertaken between January 1, 2003, and 2004, while Hartz IV was implemented on January 1, 2005.

The "Hartz Committee" was founded on February 22, 2002, by the federal government of Germany led then by Gerhard Schröder. Its official name was Kommission für moderne Dienstleistungen am Arbeitsmarkt (Committee for Modern Services in the Labour Market). The 15-member committee was chaired by Peter Hartz, then Volkswagen's personnel director.

Hartz I and II both came into effect on January 1, 2003, aiming at making new types of jobs easier to create, and covered, for example:

Hartz I

Hartz II

Hartz III

The fourth stage of the reform was voted in by the Bundestag on December 16, 2003 and by the Bundesrat on July 9, 2004, to take effect by January 1, 2005.

This part of the reforms brought together the former unemployment benefits for long-term unemployed ('Arbeitslosenhilfe') and the welfare benefits ('Sozialhilfe'), leaving them both at approximately the lower level of the former Sozialhilfe (social assistance). The level for a single person was €374 per month (known as the Regelsatz). This was subsequently raised to €391 per month, in 2013. Added to this is the financial assistance with housing and health care. Couples can receive benefits for each partner plus their children.

Prior to 2005, between 12 and 36 months (depending upon the claimant's age and work history) of their full unemployment benefit (60 to 67% of the previous net salary) were followed by the Arbeitslosenhilfe (unemployment assistance), amounting to 53 to 57% of the last net salary). Since 2008, eligibility for the full unemployment benefit (renamed Arbeitslosengeld in 2005 and commonly referred to as Arbeitslosengeld I in everyday German to contrast it with the lower benefits discussed below) has been restricted to 12 months in general, 15 months for those aged 50 or older, 18 months for those 55 or older and 24 months for those 58 or older.

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