The grand coalition is considering increasing the short-time allowance until 2022. According to a media report, Labor Minister Heil has already drawn up a concept for the coalition committee.
By Kai Küstner, ARD capital studio
It has long been no secret that the SPD’s Federal Labor Minister is campaigning for an extension of short-time working. Now Hubertus Heil’s plans are becoming more concrete. The short-time allowance should be paid out by March 2022 due to the Corona crisis. And the agreed surcharges for all those who will be dependent on support for a longer period of time are to be extended to this date.
“Short-time work is currently our most stable bridge over a deep economic valley to secure jobs,” Heil said in an interview with the just a few days ago ARD capital studio.
Regular short-time workers currently receive 60 percent of the last net wage, with children 67 percent. These payments increase in two stages with increasing duration. The maximum rate is due for all those who are on short-time work for seven months or more, it is then 80 percent, for employees with children 87 percent.
Topic in the coalition committee
So far, these corona-related measures were limited to the end of the year. According to “Bild am Sonntag”, the plans for the extension are contained in a concept that Heil intends to present to the coalition committee on Tuesday. A ministry spokeswoman also wanted the plans to demand ARD capital studios do not confirm at first. One is in ongoing discussions.
From the perspective of the federal government, short-time work is one of the most important tools to prevent people from sliding uncontrollably into unemployment due to the corona crisis. Basically, there have also recently been signals of approval from the Union for an extension of the new regulations. At this sentence from the minister, however, employer representatives raised their eyebrows: “My goal is also that if we continue to use short-time work sensibly, it should also be linked to qualification and further training,” said Heil.
The state should not decree that, further training is a matter for the companies, is heard from the Federal Association of German Employers’ Associations.
According to Heil, the state could assume social security contributions
According to the media report, Labor Minister Heil is now trying to lure the companies by having the state take over the social security contributions in full until March 2022 if companies continue to train short-time workers.
According to estimates by the ministry, the extension of short-time working allowance from the current twelve to 24 months can cost up to ten billion euros. However, this number depends on how many employees will be affected by short-time working in the coming months.
