Apply for support for the employment of people who have not worked for many years and receive unemployment benefit II (Hartz IV).

Prerequisites

• The person you want to get the grant for must
• be over 25 years old
• have received unemployment benefit II for at least 6 years within the last 7 years and
• not have been employed at all or only for a short time during this period.
• If at least one minor child lives in the household or if the person is severely disabled, the person must have received unemployment benefit II in the last 5 years.
• The employment must be subject to social security contributions.
• Funding is excluded if
• You terminate an existing employment relationship in order to receive a wage subsidy or
• You are no longer making use of funding previously provided for your employment without a specific reason.

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 you can submit the application online.
• Complete the application for funding and submit it to the job center or submit the application online.
• 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, your employee will be assigned to you and you will receive a notification of approval. The job center takes care of the job-related coaching for your employee(s). In order for the job center to be able to cover further training costs, you must first submit an application.
• Get in touch with your contact at the job center. There you will receive the application form.
• Fill out the application for funding and submit it to the job center with all the necessary documents.
• Your job center will check your application. If all requirements are met, you will receive a notification of approval.
• As an employer, you must notify the job center of the implementation of an internship before it begins.

Processing time

No

Fees

No

Legal remedies

• contradiction

Legal basis

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

https://www.gesetze-im-internet.de/sgb_2/__16i.html

As an employer, you can offer long-term unemployed people the chance of a new start into working life through employment subject to social insurance contributions by creating suitable jobs in your company and actively supporting your new employees with their induction. The aim is for you to enable your new employee to participate in working life and to keep them in your company as long-term as possible even after the end of the subsidy.
The job center can reimburse you for a large part of your wage costs in the first 5 years, will also finance coaching and you will receive a budget for it
required further training.

Wage cost subsidy for up to 5 years
The job center can grant you subsidies towards wage costs for a maximum of 5 years. The wage subsidy is paid monthly and amounts to

• in the 1st and 2nd funding year 100 percent,
• in the 3rd funding year 90 percent,
• in the 4th funding year 80 percent and
• in the 5th funding year 70 percent

the minimum wage under the Minimum Wage Act. If you, as an employer, are bound by a collective agreement or church labor law regulations, or if you refer to a relevant collective agreement, your subsidy will be calculated according to the wages actually paid.
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 will cover the costs of coaching for a maximum of 5 years, which will support 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 will make it easier for your new employees to get used to everyday work after a long period of unemployment.
The 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. However, you have to 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 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 special requirements that you or your company place on the staff. 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.

training costs
Upon request, the job center will also reimburse you for up to EUR 3,000 for necessary further training (course costs) during the employment, but also for in-house further training. In addition, your employees can be reimbursed for the additional travel costs and additional costs for caring for children incurred during further training. The decision on the funding of further training costs is at the discretion of the job center. You have no legal entitlement to funding.

Internship
The funding provides that internships outside of your company can also be completed with another employer within the funded employment relationship.