Integration of the Long-Term Unemployed

The wage subsidy is paid monthly and amounts to

• In the 1st year of employment 75 percent of the regular salary paid 
• In the 2nd year of employment, 50 percent of the regular salary paid

With the subsidy, the newly employed person is covered by a flat-rate social security contribution. The subsidized employment relationships are also exempt from compulsory unemployment insurance. Registration for unemployment insurance is not permitted.

Important: You will not receive a subsidy for one-off payments, for example Christmas bonuses or vacation pay. This also applies if you as an employer are obliged to pay one-off payments by collective agreement or contract.

The job center also covers the costs of two years of coaching. The coaching is intended to help the formerly long-term unemployed person, for example with problems at the new job, in the family or with difficulties in organizing everyday life. This makes it easier for the person to get used to everyday working life again after a long period of unemployment.

Participation in this coaching is generally mandatory for the employees receiving support. The coaching can take place during or outside working hours, at the workplace or at another location. In the first six months of the support, you must release the supported person from work for the coaching. If the coaching takes place during working hours, the salary will continue to be paid. The need for coaching is determined on an individual basis, and your needs as a company will be taken into account as far as possible when scheduling the coaching.

The coaching is designed in such a way that it also takes into account the requirements that you or your company place on the staff. However, the coaching does not include technical training. The person responsible for coaching will involve you as required and will be available to you for all matters relating to the person receiving support.

Um den Lohnkostenzuschuss zu bekommen, müssen Sie den Antrag stellen, bevor Sie jemanden einstellen und bevor der Arbeitsvertrag geschlossen wird.

1. Kontaktieren Sie das für den Wohnort der einzustellenden Person zuständige Jobcenter. Dort werden Sie zur Förderung beraten und erhalten das Antragsformular. Wenn Sie bereits wissen, welche Leistung für Sie in Frage kommt, können Sie auch den Online-Antrag nutzen.
2. Füllen Sie den Förderantrag aus und lassen Sie ihn dem Jobcenter zukommen.
3. Das Jobcenter prüft Ihren Antrag und informiert Sie, ob die Person, die Sie einstellen möchten, für diese Förderung in Frage kommt. Wenn das der Fall ist, ist das Beschäftigungsverhältnis förderfähig.
4. Sind alle Voraussetzungen erfüllt, bekommen Sie vom Jobcenter einen Bewilligungsbescheid.
5. Bei einer positiven Rückmeldung können Sie den Arbeitsvertrag abschließen und diesen umgehend an das Jobcenter übersenden.
6. Im weiteren Verlauf müssen Sie die monatlichen Zahlungen von geförderten Gehältern und Abgaben gegenüber dem Jobcenter nachweisen. Informationen zur Auszahlung und zu den Unterlagen und Nachweisen, die sie vorlegen müssen, erhalten Sie vom zuständigen Jobcenter.
7. Das Jobcenter vermittelt Ihrer Arbeitnehmerin oder Ihrem Arbeitnehmer das beschäftigungsbegleitende Coaching.

In order to receive the wage cost subsidy, you must submit the application before you hire someone and before the employment contract is concluded.

1. Contact the job center responsible for the place of residence of the person you are hiring. They will advise you on funding and provide you with the application form. If you already know which benefit you are eligible for, you can also use the online application.
2. Fill out the application form and send it to the Jobcenter.
3. The job center will check your application and inform you whether the person you want to hire is eligible for this support. If this is the case, the employment relationship is eligible for funding.
4. If all requirements are met, you will receive a notice of approval from the Jobcenter.
5. If you receive a positive response, you can conclude the employment contract and send it to the Jobcenter immediately.
6. You must then provide the Jobcenter with evidence of the monthly payments of subsidized salaries and taxes. You will receive information on payment and the documents and evidence that you must submit from the relevant Jobcenter.
7. The Jobcenter will arrange employment coaching for your employee.

A signed employment contract is required for the payment of benefits.

The wage cost subsidy is aimed at all employers, regardless of sector, company size, legal form or orientation. This includes private companies, non-profit organizations and municipal, public institutions.

In individual cases, further training can be funded - parallel to employment and with continued payment of salary - if the respective funding requirements are met.

The Jobcenter responsible will decide whether your employee is eligible for further training. There is no legal entitlement to this.

No. There are no costs.

Under certain circumstances, you may be obliged to repay all or part of the subsidy received. This may be the case if the employment relationship is terminated during the funding period. The approval can also be revoked. For example, if the wage subsidy is not used for the intended purpose or the required documents are not submitted.

In the case of benefits under the Participation Opportunities Act (Teilhabechancengesetz), the job center will cover part of your wage costs if you employ a long-term unemployed person. You can receive an integration subsidy in accordance with § 88 SGB III (Eingliederungszuschuss) if you employ a person who is difficult to place for personal reasons. These include, for example, frequent unemployment, family-related interruptions to employment, health restrictions, lack of professional experience, lack of a qualification, insufficient knowledge of German or unwillingness to take up employment.