Covid-19 support measures and short-time working extended

Shortfall bonus, loss compensation, hardship fund and short-time working claims can in some cases be made up to the end of the year.

Shortfall bonus

Extended for three months (July 2021-September 2021)
Advances under fixed cost subsidy II (FKZ II) no longer available – the shortfall bonus now only consists of the bonus to replace lost revenue
Eligibility criterion: 50% decline in revenue (previously 40%)
Adapted compensation rates: 15% rate (or 30% incl. FKZ II advance) replaced by tiered rates according to sector specific gross profit (10%, 20%, 30% and 40%)
Capped at EUR 80,000 per month (increased from EUR 30,000)
Additional cap when combined with short-time working: shortfall bonus and short-time working subsidy may not exceed total revenue in the comparative period

Loss compensation

Hardship fund

Extended for three months (July-September 2021)
Eligibility criterion: 50% decline in revenue, or running costs cannot be met
Amount: EUR 600 (previously EUR 1,100 incl. comeback bonus and additional bonus) to max EUR 2,000
Period: From 1 July 2021 (automatic compensation for the period 15-30 June 2021)
Application period: until end October 2021

Corona short-time working for severely affected businesses (phase 5)

Largely the same conditions apply as for phase 4
Minimum working time 30%, or less in exceptional cases
Decline in revenue of at least 50% (third quarter of 2020 in comparison with third quarter of 2019)
The special rules apply up to the end of 2021

Transition model for short-time working, with reduced subsidy

This model to support short-time working replaces the regular model that was in place before the coronavirus crisis, and so is aimed at large businesses in case of short-term fluctuations.
Reduction of 15% as compared to subsidy received so far
Net compensation rates for employees stay the same
50% minimum working time (with exceptions in certain cases)
Mandatory consumption of annual leave entitlement of one week for every (commenced) two months of short-time working
Workforce reductions between phases of short-time working made simpler
Three-week advisory period with the Public Employment Service and social partners for companies making new applications