What is short-time allowance (Kurzarbeitergeld)?

Because of the coronavirus, there are new rules for short-time work. Under certain conditions, your employer can apply for short-time allowance (Kurzarbeitergeld) at the responsible employment agency (Agentur für Arbeit). You can read more about the conditions that your employer needs to fulfill in order to receive short-time allowance here. If the conditions are fulfilled, the employment agency approves the short-time allowance and pays it to your employer. That is why you will receive both, your wages and the short-time allowance from your employer and not from the employment agency.

The fact that you work fewer hours has an impact on your salary. Short-time allowance is the money you get for your unpaid wages. That is 60% (if you have a child living with you 67%) of the net wage lost because of short-time work. If you work 50% or less, your short-time allowance is:     

• beginning with the 4th month in short-time work 70% (if you have a child living with you 77%) of the net wage lost because of short-time work.    
• beginning with the the 7th month in short-time work 80% (if you have a child living with you 87%) of the net wage lost because of short-time work.

This regulation applies until the end of the year. The employer can increase the short-time allowance. A table, to help you calculate your short-time allowance can be found on the website of the Federal Employment Agency.

Important: Even people who work in temporary agency work (Leiharbeit) can get short-time allowance! Under certain circumstances, trainees are also entitled to short-time allowance. There is no short-time allowance for employees who have a mini-job.

If the short-time allowance is not sufficient to finance your living, you can apply for supplementary social assistance (aufstockende Leistungen) at the job center or the social welfare office (Sozialamt). This also applies to: persons with permission to reside (Aufenthaltsgestattung) or special leave to remain (Duldung) and persons with a residence permit (Aufenthaltstitel) for employment or training.

Attention: Receiving supplemental social assistance from the job center or the social welfare office may impact your residency status! Receiving short-time work allowance will not affect your residency. If you have any questions, be sure to contact a Fair Integration advice center!