GERMANY'S top court has ruled that the country's dole benefits system for its poorest citizens was unconstitutional, a decision that could cost the heavily-indebted nation billions of dollars.

The system, which combines social welfare and long-term unemployment benefits, "is incompatible with ... the Constitution'', which guarantees to all citizens the right to a "dignified existence,'' the Constitutional Court said on today.

"The rules as they stand do not go far enough ... these rules are unconstitutional,'' added the chief justice Hans-Juergen Papier.

The court gave the government until the end of the year to change the way the benefits are calculated.

Labour Minister Ursula von der Leyen welcomed the court's judgement.

"The ruling is non-negotiable and it is clear that society has to pay for this,'' she told rolling news channel NTV.

Economists say that the reform demanded by the court will likely increase the cost to the government - which paid out 45 billion euros ($A71.09 billion) last year in benefits - a hefty sum amid its worst slump since World War II.

noone has the "right" to a dignified life.
you want it, go and get it.