Participation in the Job Market

The wage subsidy is paid monthly and amounts to:

• 100 percent in the 1st and 2nd funding year,
• 90 percent in the 3rd funding year,
• 80 percent in the 4th funding year
• and 70 percent in the 5th funding year

of the minimum wage in accordance with the Minimum Wage Act.

If you as an employer are bound by a collective agreement or church labor law regulations or refer to a relevant collective agreement, your subsidy will be calculated according to the remuneration to be paid accordingly.

The Jobcenter can grant you subsidies towards wage costs for a maximum of five years.

The subsidy also covers the insurance of your employee with a flat-rate share of the total social security contribution. Unemployment insurance contributions are not paid as part of this subsidized employment.

There is no legal entitlement to funding. The decision on funding is at the discretion of the Jobcenter.

Important: You will not receive a subsidy for one-off pay (e.g. Christmas bonus 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 covers the costs of the accompanying coaching, which supports the previously long-term unemployed person, for example with problems at the new workplace, in the family or with difficulties in organizing everyday life. This makes it easier for the newly employed person to get used to everyday working life again after a long period of unemployment.

The coaching can take place during or outside of working hours, at the workplace or at another location. In the first twelve months of the support, you must release the person receiving support from work to an appropriate extent for the coaching during working hours. The salary will continue to be paid. The need for coaching is determined on an individual basis. Where possible, your business needs will be taken into account when scheduling the coaching.

The coaching is designed in such a way that it also takes into account the specific requirements that you or your company place on the staff. Technical training is not part of the coaching. The person providing the coaching will involve you as required and will be available to answer any questions relating to the person receiving support.

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

• Contact the job center through which the person to be hired and the funding is to be provided. They will advise you on funding.
• If there is not yet a suitable candidate for the position you want to fill, they will recommend an eligible and suitable person selected by the job center. If, by mutual agreement, usually after an appropriate internship, the person is to be hired, the Jobcenter will assign the person and the analog or electronic application can be completed.
• If a person for whom you would like to apply for funding has already been determined and you already know which benefit you are eligible for, you will soon be able to use the online application.

Important: Information on the person to be hired is mandatory in the online application. Without this information, you cannot submit the application digitally, but only directly to the job center.

• The job center will check your application.
• If the application is approved, you can then conclude the employment contract with the eligible person.
• As soon as you have submitted the concluded employment contract to the responsible job center (as a copy or electronically), it will be checked. If all the necessary requirements are met, you will receive a notice of approval.
• You must then provide the Jobcenter with proof of payment of the subsidized salaries and contributions. Information on the documents to be submitted, proof and subsequent payment can be obtained from the relevant Jobcenter.
• If you wish to apply for the costs of further training to be covered during the course of your employment, you must submit an application to the relevant Jobcenter.
• If the person hired will not be working for a longer period of time (e.g. due to incapacity for work or maternity leave), this must be reported to the relevant job center.
• The job center will arrange employment coaching for the person hired.

The following documents are required for the application:

• Fully completed application,
• an unsigned draft employment contract in copy or in electronic form.

After approval:

• The employment contract signed by both parties in copy or in electronic form.

Yes, the Jobcenter will reimburse you up to 3,000 euros for necessary further training (course costs) during employment for the subsidized persons upon application. This also applies to in-company further training.

In addition, the subsidized persons can be reimbursed for additional travel costs and additional costs for childcare incurred during the further training. The decision on the funding of further training costs is at the discretion of the Jobcenter. You do not have a legal entitlement to the funding.

The funding also provides that internships outside your company with another employer can also be completed within the funded employment relationship.

The employee must be released from work during periods of further training or company internships with other employers. The previous grant will continue to be paid unchanged during the period of further training or internship.

No. There are no costs involved

Under certain circumstances, you may be obliged to reimburse the grants received in full or in part. This may be the case if the employment relationship is terminated during the subsidy period through no fault of the person receiving the subsidy.

The approval can also be revoked. For example, if the wage cost subsidy is not used for the intended purpose or the required documents are not submitted.

In contrast, you will most likely not have to repay the subsidy in the event of insolvency.