Baits of the Agency for Labor to Create Jobs

From grants for new jobs to short-time allowances, Labor Agencies promise to have a lot of funds for employers – liquidity of the municipality’s budget provided. The SGB III rules these measures. In the following, you will receive a primer on the most common and relevant measures. Details, downloads, and relevant forms can be found at – only in German, online translation engine needed?

1.)  Integration Grants for Long-Time Unemployed

It often happens that an employer is reluctant to hire a potential employee because that person has not worked for a longer period of time. The Federal Labor Agency wants to pay a grant to compensate this “reduced ability”.

Check out details at: – only in German, online translation engine needed?

Duration of incentive:

at most 12 months, usually shorter

Amount of incentive:

The employer will receive up to 50% of the gross salary and his contribution to social security.

2.)  Start-up Grant

Start-ups receive special incentives, if they hire an unemployed assistant.
Check out details at: – only in German, online translation engine needed?


Applicant may not be self-employed for more than two years.

Duration of Incentive:

In contrast to integration grants for long-time unemployed, the maximum duration of this incentive will usually be granted for the full 12 months.

Amount of Incentive:

Two employees at the most will be sponsored simultaneously.

3.)  Short-Time Allowances

Short-time allowances intend to help companies keep their trained employees – even and only in bad times. According to §§169 ff. SGB-III, this is fact if the regular working time for that company is shortened due to economic reasons or an act of God. Incase the company suddenly can no longer sell its products, or got weather struck, the probability to return to business as usual must also be in sight – otherwise no funding.

Check out details at: – only in German, online translation engine needed?

Amount of Incentive:

The difference between old and new net salaries will be calculated following a special table.

Duration of Incentive:

up to 6 months


4.)  Grant for Further Training

It happens that employers neglect the further training of their staff for a very simple reason: The most important persons of the company will be missing for months. The Labor Agency also helps here. Whoever sends his employee to a measure of further education can expect grants for employing a representative.

Check out details at: – only in German, online translation engine needed?

Duration of Incentive:

up to 12 months

Amount of Incentive:

Between 50 and 100% of the gross salary plus employer’s contribution to social security.

N.B. Most of these grants are discretionary and subject to budget restraints. Competent office is the one in jurisdiction at employer’s location. Keep in mind, the earlier in the year you apply, the greater are your chances for a grant.


Officially only that you are not allowed to hire for the time of subsidy and then fire. Getting staff from the labor agency has some risks. You are being sponsored for giving a long-term unemployed person (unemployed for more than one year) a new job and a new chance to be off unemployment (welfare). It is very well known that among these long time unemployed, there are also many professional welfare recipients. However, it is not too difficult to seperate the wheat from the chaff...