The woman who filed the suit argued that the "Hartz IV" unemployment benefit was below the minimum subsistence level and that the cut-off rate for determining Hartz IV eligibility was too low.

This did not respect "human dignity," she said, claiming that the payments were therefore unconstitutional.

Payments cut

The woman from the southern German town of Lörrach received unemployment payments until 2004. After the introduction of a new social security law in 2005, the woman's benefits were stopped because her husband's disability pension coupled with child allowance gave the family an income of 1050 euros -- which was above the 857 euro cut-off for a three-person household.

The Social Security Court in Kassel ruled that the benefits were in accordance with the minimum needed for physical and mental survival.

"It is constitutional to assess the recipients' needs together, and not individually," the court's Vice President, Ruth Wetzel-Steinwedel said.

The woman's lawyer said he would appeal the ruling before the Constitutional Court.

Welfare agency pushing for increase

Before the judgment, the Parity Welfare Association said it would search for other legal avenues to contest the Hart IV payment if the court rejected the case.

With the exception of rent and heating costs, the 345 euro monthly payment has to cover all living expenses.

"When the washing machine breaks down, when the curtains get holes in them and when the carpet is worn out -- this sum has to cover all these expenses," the association's director, Ulrich Schneider, said on ZDF television.

"And anyone with any commonsense knows that this isn't possible," he added.

The association is calling for the monthly benefits to be increased to 415 euros.