As an employer, you can give long-term unemployed people the chance of a new start in working life through employment subject to social insurance contributions by creating suitable jobs in your company and actively supporting your new employees during their induction.
The aim is to enable your new employee to participate in working life and to keep him or her in your company for as long as possible after the end of the subsidy.
To this end, the Job Centre can reimburse a large part of your wage costs for the first 5 years, and will also finance coaching and provide you with a budget for any necessary further training.
Wage subsidy for up to 5 years
The job centre can grant you subsidies towards wage costs for a maximum of 5 years. The wage cost subsidy is paid monthly and amounts to
- 100 percent in the 1st and 2nd year of support,
- 90% in the third year,
- in the 4th year 80 percent and
- in the 5th subsidy year 70 per cent
of the minimum wage according to the Minimum Wage Act. If you, as an employer, are bound by a collective agreement or church labour law regulations or refer to a relevant collective agreement, your subsidy will be calculated on the basis of the wage actually paid.
The subsidy also covers your employee's social insurance with a flat-rate social insurance contribution (except: contribution to unemployment insurance).
You do not receive a subsidy for one-off payments, such as Christmas bonuses or holiday pay.
Employment support (coaching)
In addition, the Job Centre will pay the costs of coaching for a maximum of 5 years, which supports your previously long-term unemployed employees, for example, with problems at the new workplace, in the family or with difficulties in organising everyday life. This makes it easier for your new employees to get used to everyday working life after a long period of unemployment.
The supported employees should take part in this coaching. In principle, the coaching can take place within or outside working hours, at the workplace or at another location. However, you must release your sponsored employee from work for the coaching in the first year of the sponsorship, in the case of coaching during working hours with continued payment of the salary. The coaching needs are determined individually. Your business concerns will be taken into account when scheduling the coaching.
The coaching is designed in such a way that it also takes into account the special requirements that you or your company place on the personnel. However, the professional training is not part of the coaching.
The coach will involve you if necessary and will be available to you as a contact person for questions concerning the sponsored employee.
Further training costs
Upon application, the Jobcenter will also reimburse you up to EUR 3,000 for necessary further training (course costs) during employment, but also for in-house further training. In addition, your employees can be reimbursed for additional travel costs and additional costs for childcare incurred during further training.
The decision on whether to subsidise further training costs is at the discretion of the Job Centre. You do not have a legal claim to the subsidy.
The subsidy provides that within the subsidized employment relationship, internships can also be completed outside of your company with another employer.
In order to receive the wage cost subsidy, you must submit an application before you hire someone and the employment contract is concluded.
- Contact your contact person at the job centre. They will advise you on the subsidy and give you the application form.
- Fill in the application form and submit it to the Jobcentre.
- Your job centre will check your application and inform you whether the employment relationship is eligible for funding and whether the person you want to employ is eligible for this funding.
- If the feedback is positive, you can conclude the employment contract and send it to the Jobcenter immediately.
- If all requirements are met, your employee will be assigned to you and you will receive a notice of approval.
The job centre will take care of the coaching for your employee.
In order for the Jobcenter to cover the costs of further training, you must also first submit an application.
- Contact your contact person at the Jobcenter. You will receive the application form there.
- Fill out the application form and submit it to the Jobcenter with all the necessary documents.
- Your job centre will check your application. If all requirements are met, you will receive a notice of approval.
As an employer, you must notify the Jobcenter that you are carrying out an internship before it begins.