Status: 12/14/2022 2:56 p.m
For the first time since 2011, the unemployment insurance contribution rate will rise again in the coming year. The reserve of the Federal Employment Agency has been used up due to the high level of short-time work in the Corona pandemic.
The federal government has approved the budget of the Federal Employment Agency (BA), which for the first time since 2011 provides for a higher contribution to unemployment insurance in the coming year. The contribution rate will increase by 0.2 percentage points to 2.6 percent of gross wages at the beginning of 2023. The contribution rate had been temporarily reduced since 2019 because the BA had built up a reserve of 26 billion euros. This was consumed by the high level of short-time work during the corona pandemic.
Great uncertainties due to the Ukraine war
According to a government representative, the BA presented its budget, which has now been approved by the cabinet, a month ago. Accordingly, the authority is counting on being able to build up a reserve again from next year. She first wants to repay an 800 million euro federal loan from 2022 and then put another 1.5 billion euros aside.
However, the BA sees great economic uncertainty as a result of the effects of the war in Ukraine. Based on the government forecast for 2023, the authority expects an annual average of 2.5 million unemployed.