As an employer, you can offer long-term unemployed individuals the chance to make a fresh start in the workforce through employment subject to social security contributions by creating suitable positions within your company and actively supporting your new employees during their onboarding process.

The goal is to enable your new employee to participate in the workforce and to retain them in your company for as long as possible, even after the subsidy period ends.

To this end, the Job Center can reimburse a large portion of your wage costs for the first 5 years, also finance coaching, and provide you with a budget for necessary continuing education.

Wage subsidy for up to 5 years

The Job Center can provide you with wage cost subsidies for up to 5 years. The wage cost subsidy is paid monthly and amounts to

• 100 percent in the first and second years of funding,
• 90 percent in the third year of funding,
• 80 percent in the fourth year of funding, and
• 70 percent

of the minimum wage as defined by the Minimum Wage Act. If, as an employer, you are bound by a collective bargaining agreement or church labor regulations, or if you rely on a relevant collective bargaining agreement, your subsidy will be calculated based on the actual wages paid.

The subsidy also covers your employee’s social security coverage with a flat-rate social security contribution. The unemployment insurance contribution is excluded.

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

Employment Support (Coaching)

The Job Center covers the costs of mandatory coaching for up to 5 years, which 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 adjust to the daily routine of work after a long period of unemployment.

The coaching can generally take place during or outside of working hours, at the workplace, or at another location. However, during the first year of the subsidy, you must excuse your subsidized employee from work for the coaching sessions; if the coaching takes place during working hours, you must continue to pay their wages. Coaching needs are determined on an individual basis. Your business needs are taken into account when scheduling coaching sessions.

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

The coach will involve you as needed and is available to answer any questions you may have regarding the subsidized employee.

Training Costs

Upon request, the Job Center will also reimburse you up to 3,000 EUR for required continuing education—so-called course fees—during employment, as well as for in-house training. In addition, your employees may be reimbursed for additional travel expenses and additional costs for child care incurred during the training.

The decision regarding funding for training costs is at the discretion of the Job Center. You do not have a legal right to this funding.

Internship

The funding program allows for internships to be completed outside your company with another employer while the funded employment relationship is in effect.