Germany: sharp increase in size of apprenticeship bonus payments

The number of apprenticeship contracts in Germany declined in 2020 due to the effects of the Covid-19 pandemic. On 17 March the Federal government strengthened the federal apprenticeship support program it introduced in the summer of 2020. The program aims to stabilize the shrinking German apprenticeship market and encourage companies to continue training apprentices despite the challenging economic situation. These new measures include in particular a doubling of apprenticeship bonus amounts paid to crisis-affected employers with apprentices and an expansion in the group of potential beneficiaries. As of 01 June 2021, companies with up to 499 employees (vs. 249 previously) will be able to receive a €4,000 bonus (vs. €2,000 previously) for each new training contract signed for the 2021/22 training year on the proviso that they maintain the number of their apprentices, as well as a €6,000 bonus (vs. €3,000 previously) for each new additional contract. The government has decided to allocate €700 million to the federal program (comprising €500 million in 2021 and €200 million in 2022). “Today’s apprentices will be tomorrow’s skilled workers,” Social Democrat Minister of Employment and Social Affairs Hubertus Heil told employers.