| @Karolina Grabowska

Increase in short-time allowance

22. August 2021
From Probandt
Reading time: ca. 1 Minute

The social protection package II is in place. The decision-making process is still pending.

The Federal Cabinet has agreed on the so-called Social Protection Package II and passed it on to the Bundestag for discussion and decision

From the 4th month, the rate should be 70% or 77%and from the 7th month, 80% or 87% of the net difference in remuneration. The number of months as a prerequisite for the benefit increase is to take into account not only future reference periods, but all reference months since March 2020. The regulation is to apply until December 31, 2020 at the longest.

Without children with children
1st - 3rd month 60% 67%
4th - 6th month 70% 77%
From 7th month 80% 87%

Another requirement shall be that the difference between target and actual remuneration in the respective reference month is at least 50 percent. The bill does not contain any deviating regulations for determining the actual remuneration. However, it can be assumed that supplements to the short-time allowance, e.g. those that result in a top-up under a collective agreement or works agreement, are not to be taken into account when calculating the net pay difference and also the 50% hurdle. It remains questionable, however, how such allowances are to be treated in the future.

It is advisable to clarify for the workforce that the statutory top-up benefit is to be credited against the benefit under labor law.

To date, employer supplements to short-time allowance have not counted toward wages subject to social security contributions, provided that, together with short-time allowance, they do not exceed 80 percent of the difference between the target wage and the actual wage under Section 106 of the Third Book of the Social Code (SGB III). Particularly in the second increase stage, however, this limit is now already reached by the statutory short-time allowance.

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