Detailed description
As an employer, you can give long-term unemployed people a fresh start in working life by offering them employment that is subject to social insurance contributions. You can receive financial support for this. The aim is to enable your new employee to participate in working life and to continue to employ them in your company even after the end of the support.
The responsible authority can reimburse you for wage costs in the first 5 years of employment. The wage cost subsidy is paid monthly and amounts to
- in the 1st and 2nd year of funding 100 percent
- in the third year of funding 90 percent
- in the 4th year of funding 80 percent
- in the 5th year of funding 70 percent
the minimum wage according to the Minimum Wage Act. If you as an employer are bound by a collective agreement or are based on it or church labor law regulations apply, your subsidy will be calculated based on the actual wage. You will not receive a subsidy for one-off payments such as Christmas bonuses or vacation pay.
The funding also covers your employee's social security contributions. Unemployment insurance contributions are excluded.
In addition, the job center will cover the costs of coaching for up to five years to support your previously long-term unemployed employees with problems at their new job, in their family or with difficulties organizing their everyday lives. This will help your new employees to adjust to everyday work more easily after a long period of unemployment.
Your sponsored employees should take part in this coaching. The coaching can take place during or outside working hours, at the workplace or at another location. You must release your sponsored employee from work for the coaching in the first year of the funding, with continued payment of wages if necessary. The coaching requirement 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. Technical training at the workplace is not part of the coaching. The coaching staff will involve you if necessary and will be available to answer any questions you may have about the employee being supported.
Upon request, the job center will also reimburse you up to EUR 3,000.00 for necessary further training (course costs) during employment. The decision on whether to subsidize further training costs is at the discretion of the job center. You have no legal entitlement to the subsidy.