Basic income support in old age and in the event of reduced earning capacity is a social welfare benefit. It secures the livelihood of people who are no longer able to work due to old age or permanent full reduction in earning capacity and whose income is not sufficient to cover their necessary living expenses. The amount and scope of the basic income support are comparable to the subsistence assistance of social welfare. Personal income and assets are offset against the basic income support. Basic income support must be applied for and takes precedence over subsistence assistance.

Elderly persons and persons with permanent full disability who are habitually resident in Germany are entitled to basic income support in old age and in the event of reduced earning capacity if they are in need.

They are entitled to benefits:

• Persons who have already reached the relevant age limit for statutory pension insurance (currently between 65 and 67 years of age).
• Persons who have already reached the age of 18 but have not yet reached the age limit if they are permanently fully incapacitated for work or if they are undergoing the entry procedure or vocational training in a workshop for disabled people or are in a training relationship for which they receive a budget for training.

A permanent full reduction in earning capacity always exists if the ability to work is reduced due to illness or disability, so that the person is unable to work at least 3 hours a day under the usual conditions of the general labor market for an unforeseeable period of time (reduced earning capacity pension). The determination of permanence presupposes that it is unlikely that the reduction in earning capacity can be remedied.

The basic income support is dependent on need and corresponds to the level of subsistence assistance under social assistance. Therefore, own income and assets are also taken into account as in the case of assistance for living expenses.

Dependent children or parents with an annual income of up to and including EUR 100,000 do not have to pay if their relatives claim basic income support. The obligation of heirs to reimburse costs is also waived. It is assumed that dependants do not exceed this annual income limit.

In addition, the presumption under social welfare law that a person living in a household with relatives or in-laws receives benefits for living expenses from these persons does not apply to the basic income support. In particular, disabled people with a permanent full reduction in earning capacity, who often live with their parents or other relatives, receive independent material security for their livelihood through the basic income support.