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Wage Subsidies
Wage incentives exist for companies that create new jobs. There are certain criteria for these incentives. Qualified newly established, small companies may, for a limited time, receive a hiring grant if they hire someone who was unemployed. Up to 50 percent of the gross salary may be subsidized for up to 12 months. In addition, the employer portion of the social security costs will be refunded for this time period.
For all companies (not just new small companies), if qualifications are met, salaries and social costs may be subsidized up to three years, as long as the employee prior to being hired was unemployed for a longer period of time or is over a certain age. The State assumes 50-70 percent of the salary during the support period. In exchange, the employee being supported, must remain employed for at least one year after the support period ends. For disabled employees, up to 70% of the salary may be subsidized for up to three years. If the employee is also 50 years old or over, additional subsidies are available.
All above discussed subsidies must be applied for at the Federal Employment Office (www.arbeitsagenture.de) before contracting the employee.
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