Weekly updates from the German Federal Parliament, the Bundestag

The German government has extended the short-time work allowance (Kurzarbeitergeld) until June 2022, as a measure to support businesses and employees affected by the ongoing economic impact of the COVID-19 pandemic.

What is Short-Time Work?

Short-time work is a mechanism designed to help companies reduce costs by reducing working hours while maintaining employment levels. Employees receive a proportion of their lost income as a benefit, known as Kurzarbeitergeld.

Eligibility and Allowance Amount

To be eligible for short-time work allowance, employees typically must have been employed for at least six months and the reduction in working hours must be due to unavoidable, economic reasons. The allowance is usually around 60% of the lost net income for employees without children and 67% for those with children.

Recent Developments

While the search results don't provide specific details about the extension until June 2022, they do mention that wage replacement benefits, such as those for short-time work, have been considered in the context of tax returns for 2022. For example, if an individual received more than €410 in such benefits, it could affect their tax status.

For the most accurate and up-to-date information regarding the extension of short-time work allowances, it would be best to consult official German employment or economic ministry resources.

Additional Information

The draft bill for the extension of short-time work allowance will be read for the first time on 16 February. The Bundestag will vote on the resolution recommendation of the responsible committee on 18 February.
The regulations in the Care Time Act and Family Care Time Act will continue to apply beyond 31 March 2022.
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From the fourth month, employees may receive 70% or 77% of their short-time work allowance if children live in the household. From the seventh month, employees may receive 80% or 87% of their short-time work allowance.
Recipients of housing benefit will receive a one-time payment in a tiered manner based on household size, starting with 135 euros for one-person households, 175 euros for two-person households, and an additional 35 euros for each additional person in the household. Recipients of (Aufstiegs-) BAföG will receive a per-capita subsidy of 115 euros. The goal is for the eligible individuals to receive the subsidy before the heating season's utility bills are due, which is typically around the summer. The payment to recipients of housing benefit, training allowance, and training pay will be made automatically, while recipients of BAföG and Aufstiegs-BAföG will receive the subsidy upon application.
The mandate of operation "SEA GUARDIAN", which will be regularly evaluated in the future, is proposed to be extended until 31 March 2023. The upper limit for deployed Bundeswehr soldiers has been reduced from 650 to 550 for the operation "SEA GUARDIAN", which covers the Mediterranean Sea outside the coastal waters.
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The extension of the short-time work allowance (Kurzarbeitergeld) until June 2022 is a significant development in policy-and-legislation, demonstrating the German government's continued support for businesses and employees dealing with the ongoing economic impact of COVID-19. As part of the recent developments, it has been suggested that the allowance could impact tax returns for 2022, particularly for individuals receiving more than €410 in such benefits.

In the realm of politics, the draft bill for the extension of short-time work allowance will be presented on 16 February, followed by a Bundestag vote on the resolution recommendation of the responsible committee on 18 February. This legal measure is part of a larger sustainability policy-and-legislation initiative, as Germany establishes the Parliamentary Advisory Council for Sustainable Development (PBnE) to comprehensively accompany the federal government's national, European, and international sustainability policy.