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Decision of the coalition partners of 22 April, 2020: Increase in short-time work allowance from the 4th month of short-time work

As the restrictions to contain the corona pandemic will continue to be eased only in small steps, the coalition partners decided on 22 April 2020 to adopt some new measures to mitigate the social and economic consequences of the corona crisis.

In particular, these include an increase in short-time work allowance after a certain period of entitlement. With regard to the first three months of short-time work, the existing short-time allowance rates remain unchanged. The increase will take effect from the 4th month of short-time working compensation and is subject to the condition that at least 50% of regular working hours are lost. In this case, the short-time working allowance increases to 70% (or 77% for employees with children) of the net remuneration difference, i.e. the difference between the flat-rate net remuneration from the target remuneration (contractual remuneration without short-time working) and the flat-rate net remuneration from the actual remuneration (remuneration reduced as a result of short-time working). From the 7th month of receiving reduced hours compensation, this then increases to 80% (or 87% for employees with children) of the net remuneration difference. As things stand at present, an increase in short-time working compensation will be granted until 31 December 2020 at the latest.

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