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Germany’s 10-Point Plan Against Social Benefit Fraud

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Germany’s cabinet approved a 10-point plan against social benefit fraud on September 23, 2026. The plan targets sham jobs and organized exploitation schemes tied to EU migration. Some measures have been in force since July 1, 2026.

Who Does Germany’s 10-Point Plan Target?

Labor Minister Bärbel Bas and Interior Minister Alexander Dobrindt presented the 10-point plan together. Both framed it as protecting the welfare state (Sozialstaat), not as a crackdown on foreign workers.

Dobrindt said the government is “closing loopholes in the welfare state.” He added that the 10-point plan shows clear resolve against fraudsters.

Officials drew a line between foreign workers and organized fraud. Germany still wants foreign skilled workers. Meanwhile, EU free movement is not being restricted either.

The 10-point plan targets three groups involved in organized abuse:

  • Employers who under-report jobs to shift costs onto the state
  • People who claim basic income support while wanted on an enforceable arrest warrant
  • Landlords running substandard Schrottimmobilien (slum properties) tied to fraud

Which of the 10 Measures Are Already in Force?

Germany’s 10-point plan bundles ten measures at three different stages:

10-Point Plan MeasureStatus as of September 2026
Employers repay overpaid basic income support (SGB II) when they fail to register a Minijob or a standard social-security-liable job properlyIn force (July 1, 2026)
Job centers (Jobcenter) get automatic notice of residency status changesIn force (July 1, 2026)
Job centers report suspected undeclared work (Schwarzarbeit) to customs authorities (Zoll)In force (July 1, 2026)
People with an enforceable arrest warrant would lose basic income support under SGB II (Bürgergeld) and SGB XII (social assistance)Pending (needs SGB II/XII amendments, end of 2026)
Municipalities would get stronger legal tools against Schrottimmobilien, including new expropriation powersPending (end of 2026)
A new competency center for benefit fraud inside the Bundesagentur für Arbeit, with five regional offices to speed up enforcementOngoing
Prosecutors get expanded tools against organized exploitation schemesOngoing
Victim protection is strengthenedOngoing
Germany pushes the EU Commission to review free-movement rulesOngoing
“Know before you go” campaigns explain German labor standards in EU countries of originOngoing

What Does the 10-Point Plan Mean for EU Citizens Working in Germany?

Working in Germany and paying into the system? Then the 10-point plan changes nothing for you. The standard Bürgergeld rate for a single adult stays at €563 per month.

Who’s actually at risk? EU citizens registered as working minimal hours purely to unlock Bürgergeld top-ups.

The government leans on the 2015 Alimanovic ruling from the EU Court of Justice. The Alimanovic ruling lets member states restrict benefits for EU citizens who are job-seeking, not working.

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