Participation in the Job Market

The wage subsidy is paid monthly and amounts to:

• 100 percent in the first and second years of funding,
• 90 percent in the third funding year,
• 80 percent in the fourth funding year
• and 70 percent

of the minimum wage as defined by the Minimum Wage Act.

If, as an employer, you are bound by a collective bargaining agreement or church labor regulations, or if you refer to a relevant collective bargaining agreement, your subsidy will be calculated based on the wages payable under that agreement.

The Job Center can grant you wage subsidies for a maximum of five years.

The subsidy also covers your employee’s social insurance coverage through a flat-rate portion of the total social insurance contribution. Unemployment insurance contributions are not paid as part of this subsidized employment.

There is no legal entitlement to this subsidy. The decision regarding the subsidy is at the discretion of the Job Center.

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

The Job Center covers the costs of the supportive coaching that assists individuals who werepreviously long-term benefit recipients—for example, when they face problems at their new job, within their family, or with organizing their daily lives. This makes it easier for newly hired individuals to readjust to the daily routine of work after a long period of receiving benefits.

The coaching can take place during or outside of working hours, at the workplace, or at another location. During the first twelve months of the program, you must grant the participant a reasonable amount of time off during working hours for coaching. Wages will continue to be paid. The need for coaching is determined on an individual basis. Your business needs will be taken into account as much as possible when scheduling coaching sessions.

The coaching is designed to also take into account the specific requirements that you or your company place on your staff. Job-specific training is not part of the coaching. The coach will involve you as needed and is available to answer any questions you may have regarding the participant.

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

• Contact the Job Center through which the placement of the person to be hired and the subsidy will be processed. They will advise you on the subsidy.
• If there is not yet a suitable candidate for the position you wish to fill, the Job Center will recommend an eligible and suitable person selected by them. If, by mutual agreement—usually after an appropriate internship—you wish to hire that person, the Job Center will make the placement, and you can then fill out the paper or electronic application.
• If you have already identified a person for whom you wish to apply for funding and you already know which benefit applies to you, you will soon be able to use the online application as well.

Important: Information about the person to be hired is required in the online application. Without this information, you cannot submit the application digitally; you must submit it directly to the Jobcenter.

• The Job Center will review your application.
• If the application is approved, you can then sign the employment contract with the eligible person.
• As soon as you have submitted the signed employment contract to the responsible Job center (as a copy or electronically), it will be reviewed. If all necessary requirements are met, you will receive a notice of approval.
• Going forward, you must provide the Job Center with proof of payments for subsidized wages and payroll taxes. You can obtain information on the required documents, supporting evidence, and the subsequent payment from the responsible Job Center.
• If you wish to apply for coverage of continuing education costs during the course of employment, you must submit an application to the responsible job center.
• If the hired individual is unable to perform their duties for an extended period (for example, due to incapacity for work or maternity leave), you must notify the responsible Jobcenter.
• The Job Center will arrange on-the-job coaching for the hired individual.

The following documents are required to apply:

• A fully completed application form,
• a copy or electronic version of a draft employment contract that has not yet been signed.

After approval:

• A copy or electronic version of the employment contract signed by both parties.

Yes. Upon request, the Job Center will reimburse you up to 3,000 euros for necessary continuing education (course fees) during employment for eligible individuals. This also applies to in-house training.

In addition, the individuals receiving support may be reimbursed for additional travel expenses and additional costs for child care incurred during the training. The decision regarding funding for training costs is at the discretion of the Job Center. You do not have a legal right to this funding.

The funding program also allows for internships to be completed outside your company with another employer while the subsidized employment relationship is in effect.

During periods of continuing education or company-sponsored internships with other employers, the employee must be granted time off. The existing funding will continue to be paid at the same rate throughout the duration of the continuing education or internship.

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 through no fault of the subsidized individual.

The grant may also be revoked. For example, if the wage subsidy is not used for its intended purpose or if the required documents are not submitted.

In contrast, in the event of insolvency, it is highly unlikely that you will be required to repay the subsidy.