Short-Time Work Allowance Calculator
Calculate your short-time work allowance for reduced working hours.
As of September 2026Basis: §§ 95–111 SGB III (Social Code III)Calculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
Monthly gross pay at full hours · tap or drag
By what percentage are your working hours reduced?
First month with short-time work allowance in the company – determines how long it can be paid.
months of short-time work, tax class , , church tax, children.
More detailsAge 35
Affects your net pay via long-term care insurance.
Short-time work allowance
per month (60% benefit rate)
€698.20
€698.20Together with your reduced salary (€1,477) you have €2,175 net a month – €430 less than usual (16.5%).
Your normal net pay (€2,606) during short-time work
- Reduced salary (net)€1,47757%
- Short-time work allowance€69827%
- Income loss€43017%
- Normal net
- €2,605.50
- Income during short-time work
- €2,175.04
- Income loss
- -€430.46 (16.5%)
RZ-26 · headon.pro
Over 3 months
Over the whole period you receive €2,095 in allowance; your income is €1,291 below your normal net pay in total.
- Month 3End · €2,095 in total
- Month 12regular maximum
- Allowance total
- + €2,094.60
- Total income loss
- − €1,291.38
Possible 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.
If your employer tops up:
- To 90% of net
- + €169.91/mo.
- To 100% of net
- + €430.46/mo.
What you can do
Short-time work benefit is based on flat-rate net pay (§ 106 (1) in conjunction with § 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.
How this was calculated
- Target pay (gross)
- €4,000.00
- Target pay (net)
- €2,605.50
- Actual pay (gross, -50%)
- €2,000.00
- Actual pay (net)
- €1,476.84
- Net difference
- €1,128.66
- Flat-rate net pay (target)
- €2,675.50
- Flat-rate net pay (actual)
- €1,511.83
- Flat-rate net pay difference (§ 106 SGB III)
- €1,163.67
- Benefit rate
- 60%
- Short-time work allowance
- €698.20
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. From 2027 again 12 months unless a new ordinance is issued.
Requirements for the allowance:
- Employer has notified short-time work
- At least one third of employees affected
- Each losing more than 10% of pay
- Employment subject to social insurance
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?
- 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
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
Requirements for short-time work allowance
- 1Short-time work notifiedThe employer has notified short-time work to the Employment Agency
- 2One-third threshold of employeesAt least one third of employees are affected by a loss of pay (§ 96 SGB III)
- 310% threshold of payThe loss of pay is more than 10% of the monthly gross pay in each case
- 4Subject to social insuranceYou are in employment subject to social insurance
- 5Employment not terminatedThe employment relationship has not been terminated
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
- 1Tax-freeYou pay no tax on the short-time work allowance itself
- 2Progression provisoThe allowance does, however, increase your personal tax rate for other income
- 3Tax return requiredIf you receive more than €410 of allowance per year, you must file a tax return
- 4Possible additional paymentDue to the progression proviso, additional tax payments can arise
Side job during short-time work
- 1Generally allowedYou may take on a side job during short-time work
- 2Offset for extra earningsSide-job income is offset if you earn more than before the short-time work
- 3Mini-job usually unproblematicA mini-job up to €603 is usually possible without problems
- 4Inform your employerInform your employer about the planned side job
Frequently asked questions about short-time work allowance
Key facts about the allowance at a glance
How high is the short-time work allowance?
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).
What requirements apply to short-time work allowance?
The employer must notify short-time work to the Employment Agency. At least one third of employees must be affected by a loss of pay of more than 10% of their monthly gross pay in each case (§ 96 SGB III). You must be in employment subject to social insurance and the employment relationship must not be terminated.
How long can I receive short-time work allowance?
The regular benefit duration is 12 months (Section 104 SGB III). The Fourth Short-Time Work Allowance Duration Ordinance (BGBl. 2025 I No. 338) extends it to up to 24 months, until 31 December 2026 at the latest. From 2027 the 12 months apply again unless a new ordinance is issued. The calculator shows the maximum duration for your start date.
Can my employer top up the short-time work allowance?
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.
Do I have to pay tax on short-time work allowance?
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.
May I take on a side job during short-time work?
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.