Participation in the Labor Market; Applying for a subsidy when hiring individuals who have been unemployed for at least 2 years

As an employer, you can offer long-term unemployed individuals the opportunity to start a new career through a job subject to social security contributions.

The goal is for you to continue employing your new employee at your company on a permanent basis, even after the subsidy period ends.

To support this, the Job Center can reimburse you for a portion of your payroll costs during the first two years and also fund coaching services.

Wage Subsidy for 2 Years

The Job Center can provide you with wage cost subsidies for two years. The wage cost subsidy is paid monthly and amounts to

• 75 percent of the regular wages to be taken into account in the first year of employment and
• 50 percent of the regular wages in the second year of employment.

The subsidy also covers your employee’s social security coverage with a flat-rate social security contribution (except for the unemployment insurance contribution).

You will not receive a subsidy for one-time payments such as Christmas bonuses or vacation pay.

Employment Support (Coaching)

In addition, the Job Center covers the costs of a two-year coaching program that supports your employees who were previously long-term unemployed—for example, when they face problems at their new job, in their family, or with organizing their daily lives. This makes it easier for your new employees to readjust to the daily routine of work after a long period of unemployment.

Your subsidized employees are expected to participate in this coaching. The coaching can generally take place during or outside of working hours, at the workplace, or at another location. During the first 6 months of the grant period, you must grant your subsidized employee time off from work for the coaching; if the coaching takes place during working hours, the employee must continue to receive their regular pay. The need for coaching is determined on an individual basis. Your business needs will be taken into account when scheduling the coaching sessions.

The coaching is designed to also take into account the specific requirements that you or your company place on your staff. However, on-the-job training is not part of the coaching.

The coach will involve you as needed and is available as a point of contact for any questions regarding the employee receiving the subsidy.

In some cases, vocational training may also be funded.

Whether you are eligible for the funding is determined solely by your local Job Center. This means you have no legal entitlement to it.

• The person for whom you are applying for the benefit must
  • be receiving basic income at the time you submit your application
  • have been unemployed for at least 2 years and,
  • not yet have found employment despite the job center’s placement efforts.
• The employment must be subject to social security contributions.
• You must employ the employee for at least 2 years.
• You are not eligible for the subsidy if
  • you terminate an existing employment relationship in order to receive a wage subsidy, or
  • you intend to hire a person who has been employed by you for more than 3 months in the past 4 years and was subject to social insurance contributions during that time.

To receive the wage subsidy, you must submit an application before you hire someone and the employment contract is signed.

• Contact your representative at the Job Center. There, you will receive advice on the subsidy and can obtain the application form or submit the application online.
• Fill out the subsidy application and submit it to the Job Center.
• Your Job Center will review your application and let you know whether the employment relationship is eligible for funding and whether the person you wish to hire qualifies for this funding.
• If the response is positive, you can sign the employment contract and send it to the Job Center immediately.
• If all requirements are met, you will receive a notice of approval from the Job Center.
• The Job Center will arrange on-the-job coaching for your employee.

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

No information provided

• Required document(s)
  
  • Completely filled-out application
  • Employment contract

There are no costs involved.