Apply for support to employ long-term unemployed people

Prerequisites

The person you want to get the grant for must

• received 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 placement efforts of the job centre.
• The employment must be subject to social security contributions.
• You must employ the employee for at least 2 years.
• Funding is excluded if
• You terminate 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 and is subject to compulsory insurance.

Documents required

• Completed application
• employment contract

Deadlines

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

Procedure

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

• Get in touch with your contact at the job center. There you will be advised on funding and will receive the application form or the application online.
• Fill out the funding application and submit it to the job center.
• Your job center will review your application and inform you whether the employment relationship is eligible and whether the person you want to hire is eligible for this support.

• If the feedback is positive, you can conclude the employment contract and
send it to the job center immediately.
• If all requirements are met, you will receive one from the job center
approval notice.
• The job center conveys this to your employees
on-the-job coaching.

Fees

No

Legal remedies

contradiction

Legal basis

Section 16e of the Second Book of the Social Code (SGB II)

https://www.gesetze-im-internet.de/sgb_2/__16e.html

As an employer, you can give long-term unemployed people the opportunity to start a new career by taking up employment that is subject to social security contributions. The aim is for you to employ your new employee in your company as permanently as possible even after the end of the funding. The job center can reimburse you for part of your wage costs in the first two years and also finances coaching.

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

• in the first year of work 75 percent of the regular wages to be taken into account and
• in the 2nd year of work 50 percent of the regular salary to be taken into account.

With a flat-rate social security contribution, the subsidy also covers the security of your employee (except: contribution to
Unemployment insurance). You will not receive a subsidy for one-off payments such as Christmas bonuses or holiday bonuses.

Career support (coaching)
In addition, the job center covers the costs for a two-year coaching that supports your previously long-term unemployed employees, for example with problems at the new job, in the family or with difficulties with organizing everyday life. This makes it easier for your new employees to get used to everyday work again after a long period of unemployment.
Your sponsored employees should take part in this coaching. In principle, the coaching can take place within or outside of working hours, at the workplace or at another location. In the first 6 months of the sponsorship, you must release your sponsored employee from work for the coaching, in the case of coaching during working hours with continued payment of wages. The need for coaching is determined individually. Your business interests 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. The
However, professional training is not part of the coaching. The coach will involve you if necessary and will be your contact if you have any questions
available that relate to the sponsored employee.
If necessary, further professional training can also be funded. Your responsible job center alone decides whether you can receive the funding. That means you have no legal right to it.