Creating new opportunities for the long-term unemployed in the general and social labour market
(Participation Opportunities Act: Tenth Act amending the Second Book of the Social Code)
The Participation Opportunities Act has been in place since 1 January 2019. It offers long-term unemployed people new prospects in the labour market.
If you are toying with the idea of hiring a new employee, you can combine this with a promotion through one of the two new rule instruments.
Participation in the labour market S.C. 16i SGB II
Goal
The aim is to enable long-term unemployed people who are not in the labour market to participate in social participation by taking up an employment relationship subject to social security contributions and by providing comprehensive support for employment.
Promote
The new instrument is characterised by a support period of up to five years and a high, degressive wage cost subsidy.
This is 100 percent in the first two years on the basis of the statutory minimum wage or a wage paid and decreases by 10 percentage points per year from the third year of the employment relationship.
During the funding period, a holistic support for employment is carried out (coaching), with the help of which the employment relationships are supported and stabilized.
For qualifications, the employer can be reimbursed 3,000 euros per grant case.
Eligibility requirements
Employers can receive a wage cost subsidy in accordance with Section 16i sGB II if they hire a person from the target group subject to social security contributions.
The target group includes those persons who are over 25 years of age, have received subsistence benefits under SGB II in at least six of the last seven years and who were not employed or were employed only for a short period during that period.
Severely disabled persons and persons with at least one minor child in the community of needs can be supported after only five years of benefit.
Integration of the long-term unemployed s. 16e SGB II
Goal
16e SGBII in its new version aims to create employment opportunities in the general labour market.
Promote
The salary subsidy (collectively or local) amounts to 75 percent in the first year and 50 percent in the second year. During the funding period, a holistic support for employment — coaching) takes place.
Eligibility requirements
It promotes employment relationships with persons who have been unemployed for at least two years.
Please note that any support must always be requested by the employer before the conclusion of the employment contract.
Would you like to get advice on the funding possibilities? Just send us an e-mail: JC-SBK. Integration@jobcenter-ge.de
For more information, please visit: www.bmas.de