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

As an employer, you can give long-term unemployed people the chance of a new career start through employment subject to social security contributions.

The aim is to keep your new employee in your company for as long as possible after the end of the support.

The job center can reimburse part of your wage costs in the first 2 years and also finances coaching.

Wage cost subsidy for 2 years

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

• in the 1st year of employment 75% of the regular salary to be taken into account and
• in the 2nd year of employment 50 percent of the regular pay to be taken into account.

The subsidy also covers your employee's insurance with a flat-rate social security contribution (except: contribution to unemployment insurance).

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

Support during employment (coaching)

In addition, the Jobcenter will cover the costs of two years of coaching to support your previously long-term unemployed employees, for example with problems at their new workplace, with their family or with difficulties in organizing their everyday life. This makes it easier for your new employees to get used to everyday working life again after a long period of unemployment.

Your sponsored employees should take part in this coaching. In principle, the coaching can take place during or outside working hours, at the workplace or at another location. In the first 6 months of the support, you must release your supported 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 on an individual basis. Your business needs 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. However, the coaching does not include technical training.

The coach will involve you as required and will be available to you as a point of contact for questions relating to the supported employee.

If necessary, further vocational training can also be funded.

Only your local Jobcenter will decide whether you are eligible for funding. This means that you have no legal claim to it.

• The person for whom you wish to receive the grant must
  • receive a citizen's allowance at the time of your application
  • have been unemployed for at least 2 years and,
  • have not yet taken up employment despite the Jobcenter's placement efforts.
• The employment must be subject to social insurance contributions.
• You must employ the employee for at least 2 years.
• Funding is excluded if
  • you are terminating an existing employment relationship in order to receive a wage subsidy or
  • you wish to employ a person who has been employed by you for more than 3 months in the last 4 years and who is subject to social insurance contributions.

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 person at the Jobcenter. They will advise you on the subsidy and provide you with the application form or the application online.
• Complete the funding application and submit it to the Jobcenter.
• Your job center will check your application and inform you whether the employment relationship is eligible for funding and whether the person you would like to hire is eligible for this funding.
• If the response 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 Jobcenter.
• The Jobcenter will arrange the employment coaching for your employee.

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

Objection period: 1 month

Not specified

• Required document/s
  
  • Fully completed application
  • employment contract

There are no costs.