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📉 Short-time work and short-time work benefit

How short-time work is introduced, how much short-time work benefit replaces – and how it can exceptionally be paid for longer than usual in 2026.

Short-time work benefit (Kurzarbeitergeld) Kug SGB III Loss of work Benefit period Notification of short-time work

In brief

Short-time work is the temporary reduction of the normal working hours of the business, usually because of a lack of orders. It cannot be ordered unilaterally by the employer, but needs a legal basis in the employment or collective agreement, a works agreement with the works council or your individual consent.

Short-time work benefit from the Bundesagentur für Arbeit (Federal Employment Agency) compensates part of the loss of earnings. The regular maximum benefit period is twelve months; a temporary ordinance has exceptionally extended it to up to 24 months for part of 2026.

Step by step

  1. Check the legal basis for short-time workWithout a rule in the employment or collective agreement, a works agreement or your consent, the employer may not order short-time work unilaterally.
  2. Note the notification to the Agentur für ArbeitThe employer must notify the competent Agentur für Arbeit (employment agency) of the loss of work in writing in advance.
  3. Understand your own loss of earningsShort-time work benefit replaces only part of the lost net pay – check the calculation against your payslip.
  4. If anything is unclear, involve the works council or the Agentur für ArbeitThe works council has a co-determination right in the introduction and design of short-time work and can obtain information.

Deadlines

12 months
Regular maximum benefit period for short-time work benefit under the law.§ 104 Abs. 1 Satz 1 SGB III
up to 24 months (temporary)
Through a statutory ordinance of December 2025, in force since 1 January 2026 and limited to 31 December 2026, the benefit period was exceptionally extended to up to 24 months.Verordnung über die Bezugsdauer für das Kurzarbeitergeld (Ordinance on the Benefit Period for Short-Time Work Benefit), based on § 109 Abs. 5 SGB III
Watch out – common mistakes
  • Short-time work cannot simply be introduced by the employer's say-so – without a valid legal basis (contract, works agreement, consent) the full entitlement to pay remains, even if less work is actually done.
  • The extension of the benefit period to up to 24 months is limited in time and tied to the continued existence of the underlying ordinance; whether and in what form it will be extended beyond 31 December 2026 was still open as of this page.
  • If benefit is already being paid, extending it requires a fresh notification by the employer with proof of the continuing significant loss of work – if this is not done in time, payment can be interrupted.
  • During short-time work, the employment in principle remains in full; short-time work does not automatically rule out a later dismissal for operational reasons if the economic situation does not improve.
In depth · legal basis, figures and practice – for advisers and professionals

Conditions for short-time work benefit

Short-time work benefit is granted if there is a significant loss of work with loss of pay that is due to economic reasons or an unavoidable event, is temporary, is unavoidable and, in the calendar month concerned, affects a certain proportion of employees, each with a loss of pay of more than 10 % of their gross pay (§§ 95–99 SGB III). The loss of work must be notified to the Agentur für Arbeit in writing beforehand (§ 99 SGB III).

Introduction in the business

Short-time work itself is not an option that exists automatically by law, but must be introduced in a way that is valid under employment law – by a corresponding clause in the employment contract, a collective agreement, a works agreement with the works council (which has a mandatory co-determination right here under § 87 Abs. 1 Nr. 3 BetrVG) or by the individual consent of the employee.

Amount of short-time work benefit

Short-time work benefit is in principle 60 % of the net pay difference, and 67 % for employees with at least one child (§ 105 SGB III). It is calculated by the Agentur für Arbeit and usually paid out by the employer, who then has the amounts reimbursed by the Agentur für Arbeit.

Benefit period 2026

The regular maximum benefit period is twelve months (§ 104 Abs. 1 Satz 1 SGB III). In the case of exceptional conditions across the entire labour market, the Federal Government can extend the benefit period by statutory ordinance to up to 24 months (§ 109 Abs. 5 SGB III). Such an ordinance – the Fourth Ordinance on the Benefit Period for Short-Time Work Benefit (BMAS, cabinet decision November 2025) – was issued with effect from 1 January 2026 and is limited to 31 December 2026.

Who is responsible
  • Agentur für Arbeit (approval of short-time work benefit)
  • Employer (notification, payment)
  • Works council, if there is one (co-determination)
Further reading
Working time and overtimeWorks council and co-determination

Quick questions

Worum geht es bei „Short-time work and short-time work benefit“?
How short-time work is introduced, how much short-time work benefit replaces – and how it can exceptionally be paid for longer than usual in 2026.
Which deadlines and figures matter?
  • 12 months: Regular maximum benefit period for short-time work benefit under the law. (§ 104 Abs. 1 Satz 1 SGB III)
  • up to 24 months (temporary): Through a statutory ordinance of December 2025, in force since 1 January 2026 and limited to 31 December 2026, the benefit period was exceptionally extended to up to 24 months. (Verordnung über die Bezugsdauer für das Kurzarbeitergeld (Ordinance on the Benefit Period for Short-Time Work Benefit), based on § 109 Abs. 5 SGB III)
What should I do first?
  • Check the legal basis for short-time work: Without a rule in the employment or collective agreement, a works agreement or your consent, the employer may not order short-time work unilaterally.
  • Note the notification to the Agentur für Arbeit: The employer must notify the competent Agentur für Arbeit (employment agency) of the loss of work in writing in advance.
  • Understand your own loss of earnings: Short-time work benefit replaces only part of the lost net pay – check the calculation against your payslip.
What do I need to watch out for?
  • Short-time work cannot simply be introduced by the employer's say-so – without a valid legal basis (contract, works agreement, consent) the full entitlement to pay remains, even if less work is actually done.
  • The extension of the benefit period to up to 24 months is limited in time and tied to the continued existence of the underlying ordinance; whether and in what form it will be extended beyond 31 December 2026 was still open as of this page.
  • If benefit is already being paid, extending it requires a fresh notification by the employer with proof of the continuing significant loss of work – if this is not done in time, payment can be interrupted.
Evidence
  • Sozialgesetzbuch III (SGB III) §§ 95–99, 104, 105, 109, gesetze-im-internet.de
  • BMAS, "Vierte Verordnung über die Bezugsdauer für das Kurzarbeitergeld"
  • Bundesregierung.de, "Bezugsdauer von Kurzarbeitergeld"
  • bayme vbm, "Verlängerung der Bezugsdauer von Kurzarbeitergeld beschlossen"
As of

September 2026 · Sources and method

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