Further help for employed and unemployed people

Hanna Helder studied German language and literature at the Albert Ludwig University in Freiburg. In addition to her studies, she has gained a lot of experience in radio and print journalism through internships and freelance work. She has been at the Burda School of Journalism since October 2018 and writes, among other things, as a trainee for

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The federal government is adding to the short-time work allowance. This should help employees and companies in times of the corona pandemic. Three department heads ask for more.

The help for employees who have to go on short-time work due to the Corona crisis should be expanded. The short-time work allowance is to be increased to up to 80 percent of the last net wage for a longer period of time - for households with children up to 87 percent. In addition, the unemployment benefit I should be paid for a longer period of time. The federal cabinet decided on Wednesday a corresponding draft of a legislative package by Labor Minister Hubertus Heil (SPD).

Decision by mid-May

The package goes back to a decision by the coalition leaders last week. According to the social policy spokesman for the CSU regional group, Stephan Stracke, these changes should be decided in the Bundestag by mid-May. The main decisions:

Short-time allowance

So far, the short-time allowance is 60 or 67 percent. Now, for those who receive short-time work allowance for their working hours reduced by at least 50 percent, it will be increased to 70 percent from the fourth month of receipt and 77 percent for households with children. From the seventh month onwards, there is a further increase to 80 percent or 87 percent of the flat-rate net remuneration. This applies until December 31, 2020 at the latest. The additional earning opportunities for employees on short-time work from May 1 to December 31 are extended to the full amount of the previous monthly income.

Heil made the following example calculation: A family with one child, they work full-time, he part-time, receives a net monthly income of 4100 euros. Both are on short-time work. According to the old rule, both would get 2700 euros, according to the new rule, 3500 euros in the final stage.

Unemployment benefit

Due to the current low prospects on the labor market, unemployment benefits are to be extended by three months for those whose entitlement would expire between May 1 and December 31, 2020. Heil expects that up to 380,000 recipients of unemployment benefit I would not receive basic security for another three months.

The increase in short-time work benefits and the extension of unemployment benefits together cost the Federal Employment Agency (BA) an additional 2.6 billion euros. According to the information, this is offset by under-spending in basic security for jobseekers of an estimated 120 million euros (short-time work allowance) and 530 million euros (unemployment benefit).

Lunch for students

Schoolchildren and children who are dependent on subsistence benefits should continue to receive a warm lunch even when the day care center or school closes. Heil pointed out that municipalities can organize delivery services for this.

Orphan's pension

It should be ensured that orphan's pensions will continue to be paid even if training courses and voluntary services start later than usual due to the corona pandemic.

"Unemployment is expensive"

Heil explained: "The current situation of the Covid-19 pandemic will also present us with major challenges in the coming months." In front of journalists he emphasized: "We fight for every job." Unemployment is more expensive.

Employers' associations criticized the fact that short-time work might have to serve "to justify state interference in constitutionally protected entrepreneurial freedoms". Incidentally, short-time work benefits are financed by employers and employees. (hh / dpa)

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