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. 
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

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

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
Portugal: open consultation on the transposition of the Pay Transparency Directive
The news. On 5 August 2026, the Portuguese government published a document proposing a draft text to transpose the EU Pay Transparency Directive as the basis for a public consultation open until...
EU: the Commission will set up an Expert Group on the impact of AI in the world of work
The news. On 22 July 2026, the European Commission published a progress report on the EU-27’s achievements regarding the objectives of the European Pillar of Social Rights, reinforced by the...
Belgium: toward an additional five days of leave following the birth of a child
The news. On 18 July, the Belgian federal government approved a draft bill introducing an additional five days of leave following the birth of a child. This entitlement would be added to existing...
Germany: a national action plan to strengthen collective bargaining
The news. On 22 July, the German federal government unveiled a national action plan to promote collective bargaining in response to the requirements of the EU minimum wage directive. The directive...