Question 1

How high is the short-time work allowance in 2026?

Accepted Answer

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.

Question 2

What are target pay and actual pay?

Accepted Answer

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.

Question 3

Why don't I simply get 60 per cent of my salary?

Accepted Answer

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.

Question 4

Do I have to pay tax on the allowance?

Accepted Answer

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.

Question 5

For how long is the allowance paid?

Accepted Answer

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.

Question 6

What happens to my social insurance during short-time work?

Accepted Answer

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.

Question 7

May I take a side job during short-time work?

Accepted Answer

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.

Question 8

How accurate is this short-time work calculator?

Accepted Answer

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.

Guide: Short-Time Work Allowance Calculator

Calculating German Short-Time Work Allowance 2026: Amount, Duration, Conditions

60 or 67 Per Cent: How High the Allowance Really Is

The Progression Proviso: Why Short-Time Work Leads to a Tax Back Payment

Holiday and Short-Time Work: What Happens to Your Entitlement

A Side Job During Short-Time Work: What Gets Offset

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