As an employer, you can give long-term unemployed people the chance of a new start in working life through employment subject to social insurance contributions by creating suitable jobs in your company and actively supporting your new employees during their induction period.

The aim is to enable your new employee to participate in working life and to keep them in your company for as long as possible after the end of the support programme.

The job centre can reimburse a large part of your wage costs in the first 5 years, as well as financing coaching and providing you with a budget for necessary further training.

Wage subsidy for up to 5 years

The job centre can grant you wage cost subsidies for a maximum of 5 years. The wage subsidy is paid monthly and amounts to

• 100 per cent in the 1st and 2nd year of support,
• 90 per cent in the 3rd funding year,
• 80 per cent in the 4th funding year and
• 70 per cent in the 5th funding year

of the minimum wage in accordance with the Minimum Wage Act. If you as an employer are bound by a collective agreement or church labour law regulations or refer to a relevant collective agreement, your subsidy will be calculated according to the actual salary paid.

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

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

Support during employment (coaching)

In addition, the job centre will cover the costs of coaching for a maximum of 5 years to support your previously long-term unemployed employees, for example with problems at their new workplace, with their family or with difficulties in organising their everyday life. This makes it easier for your new employees to get used to everyday working life after a long period of unemployment.

The subsidised 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. However, you must release your subsidised employee from work for the coaching in the first year of the subsidy; in the case of coaching during working hours, you must continue to pay the employee's salary. 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 organised in such a way that it also takes into account the special requirements that you or your company place on your staff. However, the coaching programme does not include technical training.

The coach will involve you as required and will be available to answer any questions relating to the employee receiving support.

Further training costs

On application, the job centre will also reimburse you up to EUR 3,000 for necessary further training, so-called course costs, during employment, but also for in-house further training. Your employees can also be reimbursed for additional travelling expenses and additional childcare costs incurred during further training.

The decision to subsidise further training costs is at the discretion of the job centre. You do not have a legal entitlement to funding.

Internship

The subsidy also allows you to complete internships outside your company with another employer within the subsidised employment relationship.