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Short-Time Work Allowance Calculator 2026

How much is left when your hours are cut? This calculator derives the net pay difference from your target and actual gross pay, your Kurzarbeitergeld under § 105 SGB III and what actually lands in your account each month.

100% freeNo data stored§§ 95–106 SGB III, 2026 figures

Important: the allowance is tax-free — but not without consequences

Short-time work allowance itself is not taxed, but under the progression proviso it raises the tax rate applied to the rest of your annual income. Anyone receiving more than €410 in wage replacement benefits in a calendar year must file an income tax return — and often faces a back payment. This calculation is a non-binding estimate and does not replace legal or tax advice.

Pay and hours lost

€
%
€

Tax, children and region

decides between 60 and 67 per cent

Your short-time work allowance

€625.85

per month · Benefit rate 60 % · Tax class I

Net pay difference

€1,043.08

Net from actual pay

€1,330.46

over 12 months

€7,510.20

Total monthly payout

Total monthly payout

€1,956.31

net from actual pay plus the allowance

Shortfall vs. normal

€393.11

−16.7 %

You keep 83.3 %Net without short-time work: €2,349.42

Watch out for the progression proviso

Short-time work allowance stays tax-free but is counted when your personal tax rate is determined (§ 32b EStG). That higher rate then applies to all of your taxable income for the year — which is why a year of short-time work so often ends in a tax back payment.

Counted under the progression proviso

€7,510.20

Above €410 of wage replacement benefits in a calendar year you are obliged to file an income tax return (§ 46 (2) no. 1 EStG). Set money aside for a possible back payment.

Monthly payout compared

Payout by share of hours lost

How it is calculated (§ 106 SGB III)

Target pay (gross)€3,500.00
Target pay rounded€3,500.00
Actual pay (gross)€1,750.00
Actual pay rounded€1,760.00
Flat-rate net (target)€2,410.67
Flat-rate net (actual)€1,367.58
Net pay difference€1,043.08
Short-time work allowance (60 %)€625.85

Target and actual pay are rounded to the nearest euro amount divisible by 20. The flat-rate net follows § 153 SGB III: gross minus a 20 per cent social insurance flat rate, wage tax and the solidarity surcharge — church tax is not deducted.

What else you should know

  • The employer pays the allowance with the regular payroll and is reimbursed by the employment agency afterwards. You do not apply yourself — the business notifies and claims the short-time work.
  • The statutory maximum duration is twelve months. For 2026 it has been extended by decree to up to 24 months, at the latest until 31 December 2026.
  • You remain covered by social insurance throughout. Contributions on the lost pay are borne by the employer on a notional pay of 80 per cent of the difference — so your pension entitlements do not simply stop.
  • One-off payments such as Christmas or holiday bonuses, and overtime pay, are disregarded for both target and actual pay. The calculator therefore only models ongoing monthly pay.
  • This calculation is a non-binding orientation based on flat assumptions and does not replace legal or tax advice. Only your employer's payroll and the employment agency's decision are binding.

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Amount, duration, tax, holiday entitlement and side jobs — plainly explained

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Frequently Asked Questions

Under § 105 SGB III the allowance is 60 per cent of the net pay difference, or 67 per cent with at least one child within the meaning of § 32 EStG. What counts is not your gross pay but the difference between the flat-rate net derived from your target pay and the flat-rate net derived from your actual pay. The temporary pandemic increases to 70/77 and 80/87 per cent expired on 30 June 2022 and no longer apply in 2026.

Target pay is the gross pay you would have earned in the claim period without the loss of work — excluding overtime pay and one-off payments. Actual pay is the gross you genuinely earned that month, increased by certain offsettable income. Both amounts are rounded to the nearest euro figure divisible by 20 and then converted into a flat-rate net. The difference between those two net figures is the basis for the allowance.

Because the 60 per cent do not refer to your salary but only to the net shortfall. With hours cut by 50 per cent you still receive the net from half your gross — and the allowance is added on top of the half you lost. In total you therefore typically end up at 75 to 85 per cent of your usual net, not at 60 per cent. The reason is tax progression: the lost pay would have carried above-average deductions anyway.

The allowance itself stays tax-free. It is, however, subject to the progression proviso under § 32b EStG: it is added to the rest of your taxable income to determine your personal tax rate, and that higher rate is then applied to your taxable income. Because only ordinary wage tax was withheld during the year, this often produces a back payment. If wage replacement benefits exceed €410 in a calendar year you are obliged to file a tax return.

By statute the entitlement runs for a maximum of twelve months under § 104 SGB III. For 2026 the federal government extended it by decree to up to 24 months, at the latest until 31 December 2026. If short-time work pauses for at least one continuous month, the reference period is extended accordingly. After a three-month interruption a new entitlement period begins if the conditions are met again.

You remain covered by health, long-term care and pension insurance throughout. Contributions on the actual pay run as usual. For the lost pay a notional wage of 80 per cent of the difference between target and actual pay is used; the employer alone bears the resulting health, care and pension contributions. No unemployment insurance contributions are due on the notional wage. Your pension entitlements therefore fall only slightly.

Yes, but it is usually offset. Pay from employment you only took up while receiving the allowance increases your actual pay under § 106 (3) SGB III and therefore reduces the allowance almost one for one. A side job you already held before short-time work began remains exempt from offsetting. The temporary pandemic exemption for newly started mini-jobs expired on 30 June 2022. You should also clear any side job with your employer in advance.

The calculator reproduces the logic of §§ 105, 106 and 153 SGB III: rounding target and actual pay to full €20 steps, capping at the €8,450 monthly contribution ceiling, and a flat-rate net of gross minus a 20 per cent social insurance flat rate, wage tax under the 2026 income tax tariff and the solidarity surcharge. The employment agency's official tables are based on the finance ministry's payroll program specification, so small deviations of a few euros are possible. The result is a non-binding estimate and does not replace legal or tax advice.