BERLIN (Dow Jones) – The federal government is extending the easier access to short-time working allowance and the full reimbursement of social security contributions to employers by a further three months until the end of September. This emerges from the “draft of the third regulation amending the short-time work allowance regulation”, which is to be passed by the cabinet this Wednesday and which is available to the Rheinische Post.
“With short-time working we are securing millions of jobs through the crisis and are getting the German economy important skilled workers to get started quickly now in the summer,” said Federal Labor Minister Hubertus Heil (SPD). “It is important to me that we also give companies that are still severely affected by the Corona restrictions a clear perspective on the summer. The event industry, for example, parts of the catering and tourism industry or the aviation industry continue to face major challenges.”
According to the regulation, many companies would have to cut jobs without the extension. “In the current situation, the eased access and full reimbursement of social security contributions only make short-time work possible in many cases, so that from July 1, 2021, without access easing and without full reimbursement of social security contributions, more layoffs can be expected,” it says. “The provisions of this draft ordinance lead to additional expenditure in the budget of the Federal Employment Agency of around 2.6 billion euros, including 1.4 billion euros for the reimbursement of social security contributions.”
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(END) Dow Jones Newswires
June 09, 2021 02:34 ET (06:34 GMT)