Berlin’s Solidary Basic Income provides paid, socially insured employment to long-term unemployed residents as a voluntary alternative to unemployment benefits. Through the programme, participants deliver socially useful services in childcare, education, neighbourhoods, transport and the social services. In doing so, the initiative strengthens social inclusion and cohesion while reinforcing the welfare state by complementing existing labour market instruments.
Integrating long‑term unemployed people with the Solidary Basic Income in Berlin
Abstract
The Solidary Basic Income (SBI) (Solidarisches Grundeinkommen (SGE)) initiative was launched in 2019 and aims to promote labour market inclusion and social participation for people experiencing long-term unemployment in Berlin. The policy responds to evidence that prolonged unemployment is often accompanied by skills erosion, social isolation, and declining well-being, which traditional activation measures alone are unable to address effectively. Rather than relying solely on short-term labour market instruments, SBI seeks to provide stable, socially insured employment combined with personalised support, enabling participants to regain confidence, strengthen employability and remain connected to the labour market. By offering paid work activities that generate public and community value, the initiative supports inclusive growth while responding to unmet social needs across the city.
The programme explicitly combines active labour market policy with a preventative approach to mainstreaming and enhancing employability, while also fostering social participation and creating tangible value for the city. The programme also aims to generate evidence on alternative labour market instruments with the explicit aim of informing future reforms at local, regional and national levels.
Solidary Basic Income Berlin Summary
Country: Germany
City: Berlin
EU member state: Yes
Geographic scale: City
City size: Large (3 755 000 residents)
Date launched: 2019
Current status: Ongoing
Policy pillar(s): Labour markets
Target group(s): Unemployed or underemployed individuals; People at risk of poverty or social exclusion
Funding and budget:
Total budget: EUR 168 000 000
Funding sources: Regional Funding; State Funding
EU funds/programmes: Not aplicable
Stage 1 – Diagnose
The Solidary Basic Income (SBI) was developed in response to persistent long-term unemployment in Berlin and evidence that traditional activation measures were insufficient to sustainably reintegrate some groups into the labour market. Administrative data and job-centre experience showed that prolonged unemployment often leads to skills erosion, reduced employability and social isolation, increasing the risk of poverty and exclusion. The diagnosis highlighted the need for a more structural intervention that maintains labour-market attachment while addressing cumulative social and employment barriers.
Stage 2 – Prioritise
Berlin prioritised a model based on voluntary participation in paid employment, rather than conditional welfare or temporary placements. The programme targets individuals who have been unemployed for extended periods and for whom transitions into the primary labour market has not been achieved despite prior support. By prioritising employment with full social insurance coverage and multi-year contracts, the programme aims to provide stability and create the conditions necessary for long-term labour market reintegration. Eligibility focuseson individuals unemployed for one to three years, with particular attention to groups facing structural barriers, including older workers, single parents and people with migrant or refugee backgrounds.
Stage 3 – Design and mobilise
SBI was designed as a structural labour market instrument combining stable employment, personalised support and socially useful activities. Clear principles are embedded in the programme framework – jobs must be additional, publicly oriented and socially insured (i.e. formal employment subject to standard social security contributions, including health insurance, pensions and unemployment insurance, rather than informal or marginal work), and support should focus on long-term employability. Mobilisation relies on strong multi-level governance led by the Senate Department for Integration, Labour and Social Affairs, with job centres, district administrations, public enterprises and non-profits involved in delivery. Regional funding covers wages, social contributions, coaching and qualifications, supported by an advisory board ensuring strategic alignment and safeguarding against displacement. Positions are developed through a broad participatory process and concentrated in eleven areas of public interest, including education, social services and neighbourhood support. Remuneration follows public sector pay scales or, where not applicable, the Berlin minimum wage, with 100% of labour costs reimbursed to employers.
Stage 4 – Implement
Participants receive employment contracts of up to five years in public or publicly-oriented services delivering value to the city and local communities. Positions are tailored to individual capacities and embedded within regular organisational structures. Continuous, employment-accompanying coaching supports participants through individual development plans, skills assessment and access to training where needed with one-quarter of SBI employees obtaining a qualification three-years into its launch. Employers are encouraged to actively support transitions into regular, unsubsidised employment, including through financial incentives linked to successful employment. Coaching and qualifications are central pillars of the programme. Participants report high satisfaction with coaching, particularly in clarifying personal and professional goals, while qualification uptake has been strong among groups traditionally underrepresented in training, including older workers and individuals without formal qualifications. However, implementation has highlighted tensions – while coaching encourages transitions to regular employment, some employers prefer to retain SBI workers due to the value they provide, and some participants perceive the programme as a stable endpoint rather than a transition pathway.
Stage 5 – Monitor, learn and adapt
Monitoring and evaluation are integral to the programme, with indicators covering participant characteristics, duration of employment, job types, skills development, and post-programme outcomes. An independent scientific evaluation accompanies implementation, combining quantitative monitoring with surveys and interviews of participants and employers. Interim findings inform ongoing adaptations, while final results support an assessment of effectiveness, cost-benefit considerations and potential transferability, positioning SBI as both a social inclusion measures and a learning instrument for local labour market reform.
Interim findings suggest strong results in terms of social integration and job satisfaction. Participants overwhelmingly perceive their work as meaningful, most are able to earn a living without additional benefits and drop-out rates are relatively low compared to other programmes. Employers also report that SBI workers expand service provision and relieve pressure on existing staff. Yet more limited impacts have been identified on transitions into the primary labour market when assessed midway through the pilot programme. Beyond individual outcomes, the programme has generated clear societal benefits improving the accessibility, quality and scope of services for vulnerable groups such as children, older people and homeless individuals.
1. Mobilise and align funding to enable stability and progress. Multi-year employment contracts provide the security necessary for skills development, confidence-building and sustainable labour market reintegration.
2. Share and institutionalise successes captured by monitoring and evaluation. Robust monitoring and independent evaluation are essential for informing future labour market policy design, adaptation and transferability.
Berlin Senate Department for Integration, Labour and Social Affairs, Solidary Basic Income (Solidarisches Grundeinkommen): https://www.berlin.de/sen/arbeit/beschaeftigung/solidarisches-grundeinkommen/
European Social Fund Plus, Solidary Basic Income: Solidary Basic Income | European Social Fund Plus
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