Integration of People Who Have Been Receiving Benefits for a Long Time (Eingliederung von Menschen mit langem Leistungsbezug)

The wage subsidy is paid monthly and amounts to:

• 75 percent of the regular wages in the first year of employment
• In the second year of employment, 50 percent of the regular wages

With this subsidy, the newly hired employee is covered by a flat-rate social security contribution. The subsidized employment relationships are also exempt from the mandatory requirement to enroll in unemployment insurance. You may not enroll the employee in unemployment insurance.

Important: You will not receive a subsidy for one-time payments, such as a Christmas bonus or vacation pay. This applies even if you, as an employer, are obligated to make such one-time payments under a collective bargaining agreement or contract.

The Job Center also covers the costs of a two-year coaching program . The coaching is designed to help individuals who were previously long-term benefit recipients, for example, with problems at their new job, family issues, or difficulties organizing their daily lives. This makes it easier for them to readjust to the daily routine of work after a long period of unemployment.

Participation in this coaching program is generally mandatory for subsidized employees. The coaching can take place during or outside of working hours, at the workplace, or at another location. During the first six months of the subsidy, you must excuse the subsidized employee from work to participate in the coaching. If the coaching takes place during working hours, the employee’s salary will continue to be paid. The need for coaching is determined on an individual basis, and your company’s needs will be taken into account as much as possible when scheduling the coaching sessions.

The coaching is designed to also take into account the requirements that you or your company place on your staff. However, on-the-job training is not part of the coaching. The person responsible for the coaching will involve you as needed and is available to assist you with any matters concerning the participant.

To receive the wage subsidy, you must submit the application before hiring someone and before the employment contract is signed.

1. Contact the Job Center responsible for the place of residence of the person you plan to hire. There, you will receive advice on the subsidy and be given the application form. If you already know which benefit you are eligible for, you can also use the online application.
2. Fill out the subsidy application and submit it to the Jobcenter.
3. The job center will review your application and inform you whether the person you wish to hire is eligible for this subsidy. If so, the employment relationship is eligible for the subsidy.
4. If all requirements are met, you will receive a notice of approval from the Job Center.
5. If the response is positive, you can sign the employment contract and send it to the Job Center immediately.
6. Going forward, you must provide the Job Center with proof of the monthly payments for subsidized wages and payroll taxes. You can obtain information about payments and the documents and proof you must submit from the relevant Job Center.
7. The Job Center will arrange for your employee to receive on-the-job coaching.

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

The wage subsidy is available to all employers, regardless of industry, company size, legal form, or mission. This includes private-sector companies, nonprofit organizations, and municipal and public institutions.

In certain cases, continuing education may be funded—while the employee remains employed and continues to receive their salary—if the relevant eligibility requirements are met.

The decision on whether your employee receives funding for continuing education rests with the responsible Job Center. There is no legal entitlement to such funding.

No. There are no costs involved.

Under certain circumstances, you may be required to repay all or part of the subsidies you have received. This may be the case if the employment relationship is terminated during the subsidy period. The grant may also be revoked —for example, if the wage subsidy is not used for its intended purpose or if the required documentation is not submitted.

For benefits under the Participation Opportunities Act , the Job Center covers part of your wage costs if you employ a long-term benefit recipient. You may be eligible for an integration subsidy under Section 88 of SGB III if you hire someone who is difficult to place due to personal circumstances. These include, for example, frequent unemployment, family-related interruptions in employment, health limitations, lack of work experience, lack of a degree, insufficient German language skills, or even a lack of willingness to take a job.