Main reforms of the Social Protection Package II

According to the recently adopted law to further mitigate the social and economic consequences of the corona pandemic (Social Protection Package II), the impact of the corona pandemic on employers and employees is to be further mitigated in the coming months. The Social Protection Package II mainly includes the following measures:

As the restrictions to contain the corona pandemic will continue to be eased only in small steps, the coalition partners decided on 22 April 2020 to adopt some new measures to mitigate the social and economic consequences of the corona crisis.

In particular, these include an increase in short-time work allowance after a certain period of entitlement. With regard to the first three months of short-time work, the existing short-time allowance rates remain unchanged. The increase will take effect from the 4th month of short-time working compensation and is subject to the condition that at least 50% of regular working hours are lost. In this case, the short-time working allowance increases to 70% (or 77% for employees with children) of the net remuneration difference, i.e. the difference between the flat-rate net remuneration from the target remuneration (contractual remuneration without short-time working) and the flat-rate net remuneration from the actual remuneration (remuneration reduced as a result of short-time working). From the 7th month of receiving reduced hours compensation, this then increases to 80% (or 87% for employees with children) of the net remuneration difference. As things stand at present, an increase in short-time working compensation will be granted until 31 December 2020 at the latest.

The following explanations are of course neither to be understood as conclusive nor as generally valid. In particular, a different assessment may be required on the basis of the applicable employment contract, company and collective bargaining regulations as well as personal, company and other circumstances.