Cabinet decision: eased rules on short-time work extended

Status: 12/14/2022 10:44 a.m

Companies that are in difficulty can continue to register short-time work on easier terms. The federal cabinet extended an existing regulation from the corona pandemic until the summer.

The simplified access to short-time work benefits applies until the end of June 2023. The federal cabinet extended the special rules introduced during the corona pandemic by another six months. Companies can already apply for short-time work if ten percent of the workforce is absent from work. Normally it has to be at least one third of the employees. Temporary workers will also continue to be able to receive short-time work benefits.

According to media reports, the reason for the extension is the impact of the Ukraine war on supply chains and prices. Federal Labor Minister Hubertus Heil said that despite the uncertain economic situation, the situation on the labor market remained stable. With the short-time work regulation, the government is creating a secure perspective beyond the winter.

60 percent of net wages

Short-time allowance is paid out by the Federal Employment Agency (BA) when companies send employees on a forced break, for example due to production losses. You can use it to bridge a phase until business is getting better again. This is intended to preserve jobs, avoid layoffs and support companies.

If a company registers short-time work, employees receive 60 percent of their net wages, parents 67 percent. The employer pays the social contributions alone, which are slightly reduced in return. At the height of the pandemic, employers had been relieved of social security contributions to a greater extent.

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