🎯 Budget for Work
In brief
The Budget for Work (Budget für Arbeit) enables people who would actually be entitled to a workshop place to instead take up employment subject to social insurance contributions with an employer on the general labour market. For this the responsible provider pays the employer a wage cost subsidy of up to 75 % of the collectively agreed or customary pay to compensate for the reduced performance caused by disability, as well as the costs of the necessary guidance and support at the workplace.
Unlike many time-limited integration subsidies, the wage cost subsidy under the Budget for Work is generally designed to be permanent, but depending on the circumstances of the individual case it can also be time-limited or degressive.
Step by step
- Clarify your entitlement to a workshop placeThe basic requirement is that, without the Budget for Work, there would be an entitlement to employment in a sheltered workshop for people with disabilities (Werkstatt für behinderte Menschen).
- Find an employerYou or a placement specialist (e.g. of the Integrationsfachdienst, integration specialist service) look for a job on the general labour market.
- Apply to the responsible providerThe responsible body is usually the integration assistance provider, in certain constellations also the Bundesagentur für Arbeit or another rehabilitation provider.
- Agree the wage cost subsidy and supportThe provider agrees with the employer the amount and duration of the wage cost subsidy as well as covering the costs of guidance and support at the workplace.
Deadlines
- The wage cost subsidy is not fixed at a set percentage nationwide but depends on the individual reduction in performance in the specific case – "up to 75 %" is a statutory ceiling, not a standard value.
- Anyone who uses the Budget for Work has a right to return to the workshop if employment on the general labour market does not work out – this right should be raised expressly before signing a contract.
- The employment contract with the employer is a normal employment relationship subject to social insurance contributions, with all rights and obligations (including protection against dismissal under the general rules) – legally it differs markedly from workshop status.
In depth · legal basis, figures and practice – for advisers and professionals
Legal basis
§ 61 SGB IX regulates the Budget for Work. It comprises a wage cost subsidy to the employer to compensate for the employee's reduced performance, amounting to up to 75 % of the pay regularly paid by the employer, as well as covering the expenses for the guidance and support at the workplace required because of the disability.
Duration and design
The duration and scope of the benefits depend on the circumstances of the individual case; they can also be time-limited and degressive. In practice, however, a permanent subsidy is regularly agreed where the reduced performance is permanent.
Relationship to the workshop
The Budget for Work is an alternative to employment in a sheltered workshop for people with disabilities (WfbM), not a separate status. Anyone who takes up the Budget for Work has a statutory right to return to the workshop.
A question about your situation that this page does not answer? Write to us or use the contact form – we will tell you which office is responsible and what to bring. Free of charge, without individual legal advice.