Wegweiser Disability · Rights & Participation Deutsch

💳 Personal budget

Money instead of benefits in kind: with the personal budget (Persönliches Budget) you organise your support yourself and hire your helpers independently.

personal budget (Persönliches Budget) § 29 SGB IX target agreement employer model budget assistance cross-provider

In brief

Instead of having a benefit in kind (e.g. an assistance service) organised by the provider, for many participation benefits you can opt for a personal budget (Persönliches Budget): you receive money instead and organise your support yourself, for example by employing your own assistants. The personal budget can be paid out across providers as a single complex benefit if several providers are involved.

The basis is a target agreement (Zielvereinbarung) between you and the provider: it sets out which goals the budget is meant to achieve, how you prove it is used for its intended purpose and how high the budget is overall and in its parts.

Step by step

  1. Clarify your entitlementIn principle any participation benefit that can be expressed in money can be applied for as a personal budget – clarify with the provider or an advice centre whether this makes sense for your need.
  2. Have your need assessedIn the needs assessment procedure the provider determines what support you need and what amount this translates to in money.
  3. Conclude the target agreementYou conclude a target agreement with the responsible provider, which regulates funding and benefit goals, proof obligations and the amount of the budget.
  4. Manage the budgetFor example, you employ assistants yourself (employer model) or commission services – if needed, budget assistance supports you.
  5. Prove how it was usedIn line with the agreed rules, you prove that the budget was used for its intended purpose.

Deadlines

no nationwide standard deadline
The duration of the target agreement depends on the individual approval period of the benefit concerned§ 29 Abs. 4 SGB IX
Watch out – common mistakes
  • A personal budget presupposes that you are able – yourself or with the support of budget assistance – to organise your support; if that is not the case, the benefit in kind remains the better choice.
  • According to case law, a personal budget is not ruled out in principle without a target agreement, but in practice a clear target agreement considerably eases approval and creates legal certainty for both sides.
  • Anyone who employs assistants themselves under the employer model also takes on an employer's obligations under employment law (payroll, social insurance, protection against dismissal) – specialised advice and payroll services exist for this.
In depth · legal basis, figures and practice – for advisers and professionals

Legal basis

§ 29 SGB IX regulates the cross-provider personal budget. It is provided by the participating benefit providers as a complex benefit where several providers are responsible, and is generally paid out as a cash benefit, or on request as a voucher.

Target agreement

The target agreement under § 29 Abs. 4 SGB IX contains at least provisions on the orientation of the individual funding and benefit goals, on the necessity of proof that the funds were used for their intended purpose, and on the amount of the partial and overall budget. It is concluded for the duration of the relevant approval period and can be terminated in writing by either side with immediate effect for good cause.

Relationship to benefits in kind

The personal budget is not a separate type of benefit but a different form of providing existing participation benefits. In principle it stands on an equal footing with the benefit in kind; the person entitled has a right of choice (§ 104 SGB IX for integration assistance, § 29 SGB IX generally).

Who is responsible
  • The rehabilitation provider responsible for the underlying participation benefit
Further reading
Integration assistance: participation benefits at a glanceAdvice and points of contact

Quick questions

Worum geht es bei „Personal budget“?
Money instead of benefits in kind: with the personal budget (Persönliches Budget) you organise your support yourself and hire your helpers independently.
Which deadlines and figures matter?
no nationwide standard deadline: The duration of the target agreement depends on the individual approval period of the benefit concerned (§ 29 Abs. 4 SGB IX)
What should I do first?
  • Clarify your entitlement: In principle any participation benefit that can be expressed in money can be applied for as a personal budget – clarify with the provider or an advice centre whether this makes sense for your need.
  • Have your need assessed: In the needs assessment procedure the provider determines what support you need and what amount this translates to in money.
  • Conclude the target agreement: You conclude a target agreement with the responsible provider, which regulates funding and benefit goals, proof obligations and the amount of the budget.
What do I need to watch out for?
  • A personal budget presupposes that you are able – yourself or with the support of budget assistance – to organise your support; if that is not the case, the benefit in kind remains the better choice.
  • According to case law, a personal budget is not ruled out in principle without a target agreement, but in practice a clear target agreement considerably eases approval and creates legal certainty for both sides.
  • Anyone who employs assistants themselves under the employer model also takes on an employer's obligations under employment law (payroll, social insurance, protection against dismissal) – specialised advice and payroll services exist for this.
Evidence
  • § 29 SGB IX (gesetze-im-internet.de)
  • § 104 SGB IX (gesetze-im-internet.de)
As of

As of September 2026. · Sources and method

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