Current for 2026•As of: July 2026

Short-Time Work Allowance Calculator calculate the allowance.

Calculate your short-time work allowance for reduced working hours.

FreeNo sign-upGDPR-compliant
€
1,500 €10,000 €
10% 100% (zero-hours short-time work)
mo.
1 mo.24 mo.

Church tax on income

Higher benefit rate (67% instead of 60%)

Short-time work allowance 2026

  • 60% of the net pay loss (without child)
  • 67% of the net pay loss (with child)
  • At least 10% loss of working hours required
  • Benefit duration: normally 12 months; up to 24 months under the 4th KugBeV (until 31 Dec 2026 at the latest)

Employer top-up

Many employers top up the short-time work allowance, under a collective agreement or voluntarily, to 80-100% of the net salary. Check your collective or employment agreement.

Short-time work allowance

698.20 €

per month (60% benefit rate)

Your income during short-time work

Reduced salary (net)1,476.83 €
+ Short-time work allowance698.20 €
Total income2,175.03 €

Comparison to normal

Normal net2,605.50 €
Income during short-time work2,175.03 €
Income loss-430.47 € (16.5%)

Pay calculation

Target pay (gross)4,000.00 €
Target pay (net)2,605.50 €
Actual pay (gross, -50%)2,000.00 €
Actual pay (net)1,476.83 €
Net difference1,128.67 €
Flat-rate net pay difference (Section 106 SGB III)1,163.67 €

Over 3 months

Allowance total2,094.60 €
Total income loss-1,291.40 €

Possible top-up

If your employer tops up:

To 80% of net+0.00 €/mo.
To 90% of net+169.92 €/mo.
To 100% of net+430.47 €/mo.

Notes

  • • Short-time work benefit is based on flat-rate net pay (Section 106(1) in conjunction with Section 153 SGB III): 20% social-security flat rate, wage tax and solidarity surcharge — excluding church tax. Your actual net pay may differ.
  • • Standard benefit rate (60%) without children.

Requirements for the allowance:

  • Employer has notified short-time work
  • At least 10% of employees affected
  • At least 10% loss of pay
  • Employment subject to social insurance

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Short-time work allowance 2026: what you need to know

Short-time work allowance (Kurzarbeitergeld, KUG) is a benefit from the Federal Employment Agency that supports employees during a temporary loss of work. It compensates for part of the loss of earnings when the employer reduces working hours.

The amount is 60% of the lost net pay without a child and 67% with at least one child in the household.

Short-time work allowance at a glance

60% / 67% benefit rate
Of the flat-rate net pay loss - 67% with a child, 60% without a child
12 months benefit duration
Normally 12 months, extendable by ordinance in times of crisis
Top-up possible
Many employers top up voluntarily or under a collective agreement to 80-100%
Tax-free with proviso
No direct tax, but progression proviso in the tax return

How is short-time work allowance calculated?

Example: €3,500 gross normal, €1,750 gross at 50% short-time work, with a child

Example: €3,500 gross normal, €1,750 gross at 50% short-time work, with a child
ItemAmount
Target pay (full-time gross)€3,500.00
Flat-rate target net€2,388.42
Actual pay (short-time gross)€1,750.00
Flat-rate actual net€1,359.92
Net pay loss€1,028.50
Benefit rate (67% with a child)× 67%
Short-time work allowance€689.09
Total net (actual net + allowance)€2,045.38

The calculation is done in several steps: first the flat-rate net pay is determined for your normal salary (target pay) and your reduced salary (actual pay). The difference between the two is the net pay loss, of which you receive 60% or 67% as short-time work allowance.

Requirements and rules

Requirements for short-time work allowance

  1. Short-time work notified: The employer has notified short-time work to the Employment Agency
  2. 10% threshold of employees: At least 10% of employees are affected by a loss of work
  3. 10% threshold of pay: The loss of work is at least 10% of gross pay
  4. Subject to social insurance: You are in employment subject to social insurance
  5. Employment not terminated: The employment relationship has not been terminated

Top-up by the employer

80% of net
Common in industry and with good collective agreements
90% of net
With very good collective agreements or in particularly affected sectors
100% of net
Rare, but possible - usually only temporary or for certain groups

Check your collective agreement or employment contract for possible top-ups. Many companies offer voluntary top-ups to retain qualified employees.

Tax treatment and side jobs

Short-time work allowance and taxes

  1. Tax-free: You pay no tax on the short-time work allowance itself
  2. Progression proviso: The allowance does, however, increase your personal tax rate for other income
  3. Tax return required: If you receive more than €410 of allowance per year, you must file a tax return
  4. Possible additional payment: Due to the progression proviso, additional tax payments can arise

Side job during short-time work

  1. Generally allowed: You may take on a side job during short-time work
  2. Offset for extra earnings: Side-job income is offset if you earn more than before the short-time work
  3. Mini-job usually unproblematic: A mini-job up to €603 is usually possible without problems
  4. Inform your employer: Inform your employer about the planned side job

Frequently asked questions about short-time work allowance

Key facts about the allowance at a glance

The short-time work allowance is 60% of the flat-rate net pay loss without a child and 67% with at least one child in the household. It is calculated on the basis of the difference between the target pay (normal salary) and the actual pay (reduced salary).

The employer must notify short-time work to the Employment Agency. At least 10% of employees must be affected by a loss of work of at least 10% of gross pay. You must be in employment subject to social insurance and the employment relationship must not be terminated.

The regular benefit duration is 12 months. In times of crisis this period can be extended by ordinance, as during the coronavirus pandemic to up to 24 months. The extension depends on the economic situation.

Yes, many employers top up the allowance voluntarily or under collective agreements. Typical top-ups are to 80%, 90% or in individual cases even 100% of net. Check your collective or employment agreement for such provisions.

Short-time work allowance is tax-free but subject to the progression proviso. This means: you pay no tax on the allowance itself, but it increases your personal tax rate. Additional payments can therefore arise with the tax return.

Yes, you may take on a side job during short-time work. The side-job income is offset against the allowance if you earn more with it than before the short-time work. A mini-job up to €603 is usually unproblematic. In any case, inform your employer about the side job.

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