Germany: short-time working allowance extended until June 2022

The editorial team is offering you free access to this article
Start your free 1-month trial to access all our content

Germany’s labour and social affairs minister Hubertus Heil announced on Wednesday 9 February that short-time working is to be paid until the end of June 2022, meaning the measure will have been in place for 28 months instead of months as planned. When announcing the extension of measure, introduced due to the pandemic, the minister said it would be a “real shame to lose healthy companies in the home stretch.” Companies are eligible for short-time working as soon as at least 10% of staff are without work or in reduced activity. For the employee, the allowance increases to 70% of the net salary (up from 60% previously) from the fourth month and to 80% from the seventh month. Employees with children receive 77% of their net salary (up from 67%) from the fourth month and 87% subsequently. When it comes to employers’ social security contributions, the employer only has to pay 50% of the amounts usually deducted. In return, employees on short-time work must be offered opportunities to gain qualifications. According to the Federal Employment Agency (BA), more than 88,300 companies are currently applying short-time working measures, affecting 574,000 employees throughout Germany (figures from January 2021). These figures mark a sharp decline from the peak of 609,000 companies and almost six million employees in April 2021.

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
Italy: decree-law adopted to increase workplace safety
On 28 October, the Italian cabinet adopted a decree-law on health and safety at work, aimed at preventing and reducing accidents. The text addresses both the powers and actions of supervisory...
4 November 2025
Romania: parents of children with disabilities granted up to eight days of remote work per month
On 9 October, the Romanian parliament adopted a bill aiming to bolster support for parents of children with disabilities up to the age of 18. The legislation, which came into force on 12 October...
Carrefour and UNI Global Union renew global agreement on promoting social dialogue and diversity
On 17 October, Carrefour, one of the world’s largest retailers, with nearly 500,000 employees worldwide, and global union federation UNI Global Union renewed their global agreement on...
mind RH analysis – Initial findings from CSRD social indicators
In 2025, for the first time, the universal registration documents of major European companies contain the sustainability reporting required by the EU Corporate Sustainability Reporting Directive...
31 October 2025
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Veolia Environnement structure son dialogue social au niveau du groupe
L'accord instituant un CE européen prévoit une échelon intermédiaire de dialogue social au niveau des pays.
9 December 2005
2
Projet de mise en place d’un cadre optionnel pour les accords collectifs transnationaux.
L’agenda social 2005-2010, adopté par la Commission européenne, le 9 février 2005, prévoyait en effet l’idée de créer un cadre européen optionnel pour la négociation collective transnationale...
9 December 2005
3
Adoption du règlement créant un fonds pour aider les salariés victimes de la mondialisation
La proposition de règlement créant le fonds européen d'ajustement à la mondialisation (European Globalisation adjustment Fund - EGF) précise les critères d'éligibilité à une intervention du fonds...
9 December 2005
4
Regulation creating European Globalization adjustment fund is adopted
Helping employees, not companies (Article 1): for the Commission, the creation of this fund must make it possible to answer, at the European level, employees’ needs, given the consequences of...
5
Le retour à l’emploi des seniors ne justifie pas de conclure des CDD sans limite
La Cour de justice des Communautés européennes a jugé contraire au droit communautaire une loi allemande qui autorisait, sans restriction, au nom de la lutte contre le chômage, la conclusion de...
12 December 2005