Apply for support for the employment of long-term unemployed people
As an employer, you can give long-term unemployed people the chance of a new career start through employment subject to social security contributions.
The aim is to keep your new employee in your company for as long as possible after the end of the support programme.
The job centre can reimburse part of your wage costs in the first 2 years and also finances coaching.
Labour cost subsidy for 2 years
The job centre can grant you subsidies towards wage costs for 2 years. The wage subsidy is paid monthly and amounts to
- 75 per cent of the regular pay to be taken into account in the 1st year of employment and
- 50 per cent of the regular pay to be taken into account in the 2nd year of employment.
The subsidy also covers your employee's insurance with a flat-rate social security contribution (except: contribution to unemployment insurance).
You do not receive a subsidy for one-off payments such as Christmas bonuses or holiday pay.
Support during employment (coaching)
In addition, the job centre will cover the costs of two years of coaching to support your previously long-term unemployed employees, for example with problems at their new workplace, with their family or with difficulties in organising their everyday life. This makes it easier for your new employees to get used to working life again after a long period of unemployment.
Your subsidised employees should take part in this coaching. The coaching can generally take place during or outside working hours, at the workplace or at another location. In the first 6 months of the programme, you must release your sponsored employee from work for the coaching; in the case of coaching during working hours, you must continue to pay their salary. The need for coaching is determined on an individual basis. Your business needs will be taken into account when scheduling the coaching.
The coaching is organised in such a way that it also takes into account the specific requirements that you or your company place on the staff. However, the coaching programme does not include technical training.
The coach will involve you as required and will be available to you as a contact person for questions relating to the supported employee.
If necessary, further vocational training can also be subsidised.
Only your local job centre will decide whether you are eligible for funding. This means that you have no legal claim to it.
Responsible authority
Job centre
Details
Prerequisite
- The person for whom you wish to receive the grant must
- be receiving citizen's allowance at the time of your application
- have been unemployed for at least 2 years and
- have not yet taken up employment despite the Job Centre's placement efforts.
- The employment must be subject to social security contributions.
- You must employ the employee for at least 2 years.
- Funding is excluded if
- You are terminating an existing employment relationship in order to receive a wage subsidy or
- You wish to employ a person who has been employed by you for more than 3 months in the last 4 years and who is subject to social insurance contributions.
Procedure
In order to receive the wage subsidy, you must submit an application before you hire someone and the employment contract is concluded.
- Get in touch with your contact person at the job centre. They will advise you on the subsidy and provide you with the application form or the application online.
- Complete the funding application and submit it to the job centre.
- Your job centre will check your application and inform you whether the employment relationship is eligible for funding and whether the person you would like to employ is eligible for this funding.
- If the response is positive, you can conclude the employment contract and send it to the job centre immediately.
- If all requirements are met, you will receive a notice of approval from the job centre.
- The job centre will arrange employment coaching for your employee.
Deadlines
Apply for the wage subsidy before you sign the employment contract with your new employee.
Required documents
- fully completed application
- Employment contract
Costs
none
Processing time
Not specified
Miscellaneous
Further information can be found on the website of the Federal Ministry of Labour and Social Affairs and the Federal Employment Agency:
Legal basis
Sozialgesetzbuch (SGB) Zweites Buch (II) - Bürgergeld, Grundsicherung für Arbeitsuchende:
- § 16e Eingliederung von Langzeitarbeitslosen
Release note
Machine generated, based on the German release by: Bundesministerium für Arbeit und Soziales (BMAS) und Wirtschaftsministerium Baden-Württemberg, 02.07.2025