Germany: government-financed wage packet for long-term unemployed

Aid of up to 75% of the basic wage. Starting October, the government will finance up to 75% of the basic wage if employers (firms, humanitarian associations, etc) recruit full time a long-term jobseeker over 25 years of age. The government will pay the employers’ labour costs. To benefit from this aid, the jobseeker must have been out of work for at least six months without any chance of finding a job in the next two years. This aid will be generally paid to the employer for 24 months with the possibility of its extension. According to the Labour Ministry, this aid should allow the creation of 100,000 new jobs as of 2010. The total cost will be around 1.4 billion € starting the same year, but should be offset almost entirely by the savings made by the state and local government as well as by the tax and social income accruing from the new jobs. The impact of the new legislation on the labour market and public finances will be the subject of a study covering the years 2008, 2009 and 2010. The Bundestag will issue a report by December 31, 2011. 
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ecruit full time a long-term jobseeker over 25 years of age. The government will pay the employers’ labour costs. To benefit from this aid, the jobseeker must have been out of work for at least six months without any chance of finding a job in the next two years. This aid will be generally paid to the employer for 24 months with the possibility of its extension. According to the Labour Ministry, this aid should allow the creation of 100,000 new jobs as of 2010. The total cost will be around 1.4

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