Participation in the labour market; application for support when hiring people who have been unemployed for at least 2 years

If you as an employer would like to hire long-term unemployed people who have been unemployed for at least 2 years and are receiving unemployment benefit II ("Hartz IV") at the time of your application, you can apply to the Jobcenter for wage subsidies.

Description

As an employer, you can give long-term unemployed people the chance to start a new career by offering them employment that is subject to social insurance contributions.

The aim is for you to employ your new employee in your company as permanently as possible, even after the end of the subsidy.

To this end, the job center can reimburse part of your wage costs for the first two years and also finance coaching.

Wage subsidy for 2 years

The job center can grant you subsidies for wage costs for 2 years. The wage cost subsidy is paid monthly and amounts to

  • 75 percent of the regular salary in the 1st year of employment and
  • in the 2nd year of work, 50 percent of the regular wage.

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-time payments such as Christmas bonuses or vacation pay.

Employment support (coaching)

In addition, the Job Center will cover the cost of two years of coaching to help your formerly long-term unemployed employees deal with problems at their new jobs, with their families, or with difficulties in organizing their daily lives. This makes it easier for your new employees to get used to everyday work again after a long period of unemployment.

Your supported employees should participate in this coaching. In principle, the coaching can take place within or outside working hours, at the workplace or at another location. In the first 6 months of support, you must release your supported employee from work for the coaching, in the case of coaching during working hours with continued payment of the salary. Coaching needs are determined on an individual basis. 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 specific requirements that you or your company place on the personnel. However, the coaching does not include technical training.

The coach will involve you if necessary and will be available to you as a contact person for questions concerning the supported employee.

If necessary, further professional training can also be supported.

Whether you are eligible for the subsidy is decided solely by your responsible job center. This means that you have no legal claim to it.

Prerequisites

  • The person for whom you want to get the subsidy must be
    • be receiving unemployment benefit II at the time of your application
    • have been unemployed for at least 2 years and,
    • have not yet taken up employment despite the Job Center's placement efforts.
  • The employment must be subject to social insurance contributions.
  • You must employ the employee for at least 2 years.
  • The subsidy is excluded if
    • you are terminating an existing employment relationship in order to receive a wage subsidy, or
    • you want to hire someone who has been employed by you for more than 3 months in the last 4 years subject to compulsory social insurance.

Procedure

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 center. They will advise you on the subsidy and give you the application form.
  • Fill out the application for funding and submit it to the job center.
  • Your job center will review your application and inform you whether the employment relationship is eligible for funding and whether the person you want to hire 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, you will receive a notice of approval from the job center.
  • The job center will then arrange for your employee to receive employment coaching.

Deadlines

Apply for the wage subsidy before you sign the employment contract with your new employee.

Processing time

No data

Required documents

  • Required Documents

    • Fully completed application
    • Employment contract

Fees

  • None

Legal bases

Links to more information

Status:18.09.2022

Responsible for editing:Bundesministerium für Arbeit und Soziales

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