Federal Integration Grant

Program description

The integration subsidy supports the hiring of unemployed persons. As an employer, you can receive a subsidy under certain conditions for hiring employees who are in need of support. This is the case, for example, if the new employee does not yet have the necessary experience and knowledge or if the training goes beyond the usual scope, as well as for disabled and severely disabled persons.

The employment agency or job center pays the employer a temporary allowance towards the new employee's wages to make it easier for the employee to reintegrate into the workplace and take up a new job. The amount and duration depend on the individual case. The integration subsidy is linked to a commitment to continue employment beyond the subsidy period.

Institution

Federal Labor Office

As the federal agency, the Federal Employment Agency provides services for the labor market, in particular job placement and job promotion, and, as the administrative body of the German unemployment insurance system, regulates financial compensation benefits, e.g., unemployment benefits.

Deadline

The application must be submitted before the conclusion of the employment contract and before starting work.

Funding period

As a rule, a maximum of 12 months; up to 96 months, depending on the type of employment, age and support needs of the employee

Funding criteria

Employers who hire employees with special needs or disabilities who are registered as job seekers are eligible to apply. The subsidy is linked to the following condition:

The hired person must continue to be employed by the company beyond the subsidy period. The so-called post-employment period usually corresponds to the subsidy period.

The amount and duration of the subsidy is based on gross wages, the performance of the workforce and the respective integration requirements. It amounts to

• up to 50 percent for a maximum of 12 months
• up to 36 months for employees who have reached the age of 50.
• For severely disabled persons or other disabled persons: up to 70 percent for a maximum of 24 months.
• For severely disabled people who are particularly affected, the subsidy period increases to up to 60 months and, if they have reached the age of 55, to up to 96 months.

The employer's flat-rate share of the total social security contribution is included in the calculation of the subsidy. The allowance for severely disabled or other disabled persons is reduced by 10 percent per year after 12 months. It shall not fall below 30 percent of the remuneration to be taken into account. For severely disabled persons who are particularly affected, the reduction does not begin until 24 months have elapsed.

Additional conditions

No subsidy is awarded for:

• Employment relationships that have already existed and have been terminated in order to receive an integration grant
• Hiring people who have already been employed by the organization for more than 3 months within the last 4 years, subject to compulsory insurance coverage

Tip: Qualify future employees for the position to be filled

Everything fits in terms of people, but a few technical skills are still missing for the position to be filled? For example, IT experience or a driver's license. Then, under certain conditions, the new employee can receive individual support to prepare him or her for future tasks. These can be short training courses or longer courses, for example.

The relevant counseling specialist at the employment agency will be happy to explain which programs or measures are suitable for your applicant.

Expenses for (commercial)

Personnel expenses

Funding focuses on

Creating/securing jobs

Funding conditions (commercial)

unemployment status

Stage of the company/self-employment

up to 1 year after founding, up to 2 years after founding, up to 3 years after founding, up to 5 years after founding, up to 7 years after founding, existing company

Company Sizes

solo self-employed/one-man business, micro enterprise, small enterprise, medium-sized enterprise, large enterprise/corporation

Application type

Online form

Application procedure/documents

Employers can apply for the integration subsidy for a new employee online via a questionnaire . After logging in, employers can find the questionnaire in eServices and fill it out and send it to the relevant employment agency.

Assistance/Downloads

Employers can find a flyer with further information here.

A relevant brochure with information for successful personnel management can be found here.

If you have any questions about the integration subsidy, the contact person at the employer service in the relevant employment agency will be happy to help. The employment agency also provides support in the pre-selection of applicants.

Funding area

Germany

Funding source of the institution

federal government