Reintegration of Long-Term Benefit Recipients (Eingliederung von Langzeitleistungsbeziehenden)

The wage subsidy is paid monthly and amounts to:

• In the firstyear of employment: 75% of the wages paid
• In the second year of employment: 50% of the wages paid

The new hire is covered by flat-rate social security contributions. 

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

Accompanying coaching should be provided to the person who has been hired. It helps individuals who were previously long-term unemployed to more easily readjust to the daily routine of work after a long period of receiving benefits. For example, it can address problems at work, within the family, or with managing daily life.

Participation in the coaching is generally required. It can take place during or outside of working hours, at the workplace, or at another location. During the first 6 months of the program, you must grant the participant time off for the coaching sessions. 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. Your company’s needs are taken into account when scheduling appointments. However, on-the-job training is not part of the coaching. The person responsible for the coaching will involve you as needed and advise you on all matters concerning the beneficiary.

Apply for the wage subsidy before you hire someone and before the employment contract is signed: 

1. Contact the Job Center: Use the online application if you already know which benefit you’re eligible for. If you need advice or would like a paper application form, contact the Job Center responsible for the person’s place of residence.
2. Submit the application: Fill out the subsidy application and send it to the Jobcenter.
3. Job Center review: The Job Center will review your application and let you know whether the person is eligible for this subsidy.
4. Receive the approval notice: If all requirements are met, you will receive an approval notice from the Job Center.
5. Sign the employment contract: If the response is positive, you can sign the employment contract and send it to the Jobcenter immediately.
6. Submit supporting documents: Going forward, you must send the Job Center monthly documentation of the salaries paid and taxes withheld.
7. Coaching: The Job Center arranges on-the-job coaching for the employees.

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

The wage subsidy is available to all employers, regardless of industry, size, or legal structure. 

This means that private companies, nonprofit organizations, and public institutions are all eligible for funding.

In certain cases, continuing education—pursued while employed and with continued pay—may be funded if the requirements are met. 

The Job Center decides whether your employees will receive the continuing education. There is no legal entitlement to it.

No. There are no costs involved.

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

Wage Cost Subsidy under the Equal Opportunity Act (Sections 16i and 16e of SGB II): The Job Center may cover part of your wage costs if you employ a person who has been receiving benefits for a long time and the eligibility requirements are met.

• Integration Subsidy (pursuant to §§ 88 ff. SGB III): You may be eligible for this subsidy if you hire a person who, for personal reasons and due to reduced work capacity, is difficult to place in employment. These reasons include, for example:
• Recurrent unemployment
  • Family-related interruptions in employment
  • Health-related limitations
  • Lack of work experience or a lack of a degree
  • Insufficient knowledge of German
  • Lack of willingness to take a job

It is up to the responsible Jobcenter to assess these factors.