Euro am Sonntag mailbox: Corona crisis: What do I have to consider about short-time work? | message

The corona crisis does not stop at our company, the orders fail to materialize. My employer is expected to order short-time work. What does that mean for me?

Short-time work allowance, abbreviated KUG, is available from the Federal Employment Agency. The aim is to maintain jobs that are acutely at risk. KUG can be applied for if the loss of work is based on an “inevitable event”, that is, “inevitable”. The corona crisis is one of them. The employer can apply for KUG retrospectively on March 1, 2020. It also shows short-time work. The worker does not have to do anything. Short-time work does not have to be introduced for the entire company, it can also be restricted to individual departments. Employers have to ask the employees for their consent to short-time work, this also goes through the works council.

Short-time work means working less or not at all for a certain period of time. This affects income. The KUG now fills these income gaps – but only partially. Childless employees receive 60 percent of the gap replaced by the KUG. Anyone who has youngsters gets 67 percent. Accruing social security contributions for lost working hours are 100 percent reimbursed to all employees.

With a monthly net income of 3,000 euros and 50 percent short-time work, only 1,500 euros remain. Childless people receive 60 percent of the missing 1,500 euros, i.e. 900 euros, from the Federal Employment Agency. So the bottom line is 2,400 euros. Employees with children are entitled to 67 percent, in this example 1,005 euros. They will receive a total of 2,505 euros. Exception: If you can no longer go to work and therefore get 100 percent KUG, you get
60 percent of the total wages, whether with or without children. In the example, 1,800 euros.

If employees had a mini job before the start of short-time work, the income from it is not counted towards the KUG.
If employees start a 450-euro job while moving into KUG, the resulting wage will be deducted from the short-time allowance. There is one exception, however: if you work in a systemically relevant area, you can earn so much extra income until you reach the level of wages that you received before short-time work. The federal states determine what a systemically relevant profession is.

The KUG is tax free. However, it is taken into account when determining the tax rate to which the remaining taxable income is subject (so-called progression before
keep). The KUG must therefore be stated in the income tax return.

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