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Short-time work allowance (Kurzarbeitergeld)
Arbeitab 13 J.
A German state benefit when working hours are reduced: 60% of the lost net pay (67% with a child). Protects employees from dismissal in times of crisis.
Short-time work allowance (Kurzarbeitergeld, KuG) is a benefit from the Federal Employment Agency in Germany that kicks in when companies in a crisis have to cut working hours – instead of laying staff off.
Amount: 60% of the lost net pay (67% with a child). Paid by the Employment Agency, not the employer.
Example: your normal net salary: €2,000. Working hours are cut by 50%. You get €1,000 salary + approx. €600 short-time work allowance = €1,600 instead of €2,000.
Important: short-time work allowance is subject to the progression clause – it can lead to a tax back payment the following year.
Did you know? During the COVID pandemic in 2020, up to 6 million Germans were on short-time work at the same time – a historic record. The system is estimated to have saved 2.2 million jobs.
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