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Apply for Kurzarbeitergeld (short-time working allowance)

Employment agency · The company submits the application

OnlineBy the employer

Kurzarbeitergeld (short-time working allowance) replaces part of the pay lost due to a temporary loss of work. It is intended to prevent redundancies. Important for employees: the company submits the application – you cannot submit it yourself.

Under § 105 SGB III the amount is 60% of the net pay difference, or 67% for employees entitled to the increased benefit rate. The requirement is a significant loss of work: under § 96 SGB III, in the relevant calendar month at least a third of employees must each have a pay loss of more than 10%.

And here lies this year's most important special feature: § 104 SGB III specifies a maximum entitlement period of twelve months. However, under the regulatory power of § 109 Abs. 4, the Fourth Ordinance on the Entitlement Period for Short-time Working Allowance has extended the period to 24 months for the whole of 2026 – until 31 December 2026 at the latest. From 1 January 2027, twelve months will apply again, unless a new ordinance is issued. Anyone who reads only the statutory text halves the actual period.

Last updated27 August 2026
Legal basis§ 95 SGB III · § 96 · § 104 · § 105 · § 109 · § 325 Abs. 3
VerificationVerified against gesetze-im-internet.de and the Federal Ministry of Labour and Social Affairs (BMAS, 4th KugBeV)
Written and reviewed byAndrés Sánchez Botta
Independent information site: we are not the Agentur für Arbeit (employment agency), not a public authority and not a paid advice service — we do not submit applications on your behalf. All information comes from official sources and is explained simply here; the competent authority's decision is always binding. The company submits the application, not the individual employee. All information is provided without guarantee. We are neither solicitors nor tax consultants: we document administrative procedures and check the information against the official source — this is information, not legal or tax advice.
Amount60% of the differenceWith a child: 67%
Entitlement period 202624 monthsOtherwise 12 by law
From 1 January 202712 months againWithout a new ordinance
Significant loss of work1/3 of the workforceEach with over 10% pay loss
Required documents

What you need

Notification of loss of work

The first and decisive step, and it is the company's responsibility. The notification must reach the employment agency in whose district the company is located – and specifically in the month in which short-time working begins. A retroactive notification for past months is not possible.

Works agreement or individual agreements

Short-time working cannot be imposed unilaterally. A legal basis is required: a works agreement with the works council, a collective bargaining opening clause, or – without a works council – the consent of every person affected. Without one, short-time working is invalid under employment law, even if the employment agency pays.

Proof of the significant loss of work

Order shortfalls, supply bottlenecks, official orders issued by public authorities, or an unavoidable event. The company must demonstrate that the loss of work is temporary and unavoidable – a permanent drop in orders does not support short-time working, but leads to restructuring instead.

Pay calculation lists for each accounting month

For each month, the company submits a pay calculation list with the target and actual pay for each person. This is used to calculate the net pay difference. Faulty lists are the most common reason for reclaims at the later final review.

Proof of reduced working-time credits

Before short-time working, working-time credits in the company must usually be reduced and remaining leave from the previous year used up. The employment agency checks this; if the evidence is missing, recognition of the loss of work can fail.

Step by step

How to proceed

  1. 1

    Create the legal basis within the company

    Short-time working requires a basis under employment law: a works agreement, a collective bargaining opening clause, or individual consent from everyone affected. This step comes before the notification – the employment agency does not check it in detail, but without it, short-time working is not valid as against employees.

  2. 2

    Notify the loss of work in the same month

    The company notifies the competent employment agency of the loss of work – in the calendar month in which short-time working begins. A retroactive notification is not possible; anyone who misses the month-end loses the whole month. The notification is submitted online via eServices for businesses.

  3. 3

    Check the requirements of § 96

    The loss of work is only significant if, in the relevant calendar month, at least a third of the employees in the company each have a pay loss of more than 10%, the loss is due to economic reasons or an unavoidable event, and it is temporary and unavoidable.

  4. 4

    Claim Kurzarbeitergeld monthly

    The company pays out Kurzarbeitergeld first and then has it reimbursed. For each accounting month it submits a benefit application with a pay calculation list – within three calendar months after the end of the month for which the allowance is claimed. This cut-off period is often overlooked.

  5. 5

    Keep an eye on the entitlement period

    For 2026, up to 24 months are possible, until 31 December 2026 at the latest. From 1 January 2027, the statutory period of twelve months applies again – even for companies that have not yet used up the 24 months by the end of 2026. Plan for the transition instead of relying on an extension.

  6. 6

    Prepare for the final review

    After short-time working ends, the employment agency checks all the claims. Keep working-time records, pay documents and the agreements ready. Errors in the pay calculation lists regularly lead to reclaims, sometimes years later.

Fee information

Costs and payment

Free of charge for employeesThe company makes the claim
Application and notificationFree of charge
Amount, generally60% of the net pay difference
With a child67 %
Entitlement period 2026Up to 24 months
Statutory period (§ 104)12 months
Deadline for the benefit application3 months per accounting month

There are no costs for employees; claims are made via the company. The most important point is the entitlement period, and the period that applies in 2026 is not the one stated in the statute. § 104 SGB III specifies a maximum of twelve months. However, § 109 Abs. 4 SGB III allows the period to be extended by ordinance to up to 24 months in the case of exceptional labour market conditions – and that is exactly what the Fourth Ordinance on the Entitlement Period for Short-time Working Allowance does, in force from 1 January to 31 December 2026. From 1 January 2027, the statutory period of twelve months applies again, even for companies that have not yet used up the 24 months, unless a new ordinance is issued. Anyone who derives the period from the bare statutory text halves it; anyone who, conversely, relies on an automatic extension beyond 2026 is planning on a false premise. Social security contributions are also reimbursed under the rules in force at the time – the scope of this has changed several times in recent years and should be checked with the employment agency for the specific period.

Good to know

Important notes

In 2026 it is 24 months, not 12. The Fourth KugBeV extends the entitlement period for the whole of 2026 to up to 24 months, until 31 December 2026 at the latest. The Cabinet adopted it on 17 December 2025.

From 2027, twelve months apply again. The ordinance expires at the end of the year. After that, § 104 SGB III applies again – even for companies that have not used up the 24 months by then. Do not rely on an extension.

The notification has no retroactive effect. It must arrive in the month in which short-time working begins. A forgotten month-end costs the whole month – and cannot be remedied.

Employees cannot apply themselves. Only the company submits the notification and the benefit application. If your employer does not notify the short-time working, you cannot do it instead – though you can have your employment-law claims checked.

A third of the workforce, over 10% loss. Both thresholds of § 96 SGB III must be met together. A small loss affecting many, or a large loss affecting few, is not enough.

The benefit application has a three-month deadline. Per accounting month, calculated from the end of the month. This cut-off period is often overlooked during ongoing periods of short-time working, because the focus is on day-to-day business.

Short-time working must be agreed under employment law. A works agreement, collective bargaining opening clause, or individual consent. Without a basis the order is invalid, and employees retain their full pay claim – regardless of what the employment agency reimburses.

The final review comes later. After short-time working ends, the employment agency checks all the claims. Reclaims due to faulty pay calculation lists often hit companies only years later – keep clean records.

Avoid these mistakes

Common mistakes

Submitting the notification too late. It must arrive in the month in which short-time working begins. Nothing can be done retroactively – the most costly and most common mistake with Kurzarbeitergeld.

Assuming 12 months. For 2026, up to 24 months are possible. Anyone who reads only § 104 SGB III plans with half the period and ends short-time working unnecessarily early.

Relying on an extension beyond 2026. The ordinance ends on 31 December 2026. From 1 January 2027, twelve months apply again, even for ongoing cases. Anyone who assumes "it will surely be extended" risks an abrupt transition.

Ordering short-time working without a legal basis. Without a works agreement, collective bargaining opening clause, or consent, the order is invalid. Employees then retain their full pay claim against the company.

Missing the three-month deadline for the benefit application. Per accounting month. Anyone who submits the application later gets nothing reimbursed for that month, even though they have already paid out Kurzarbeitergeld.

Keeping pay calculation lists carelessly. The final review is certain to come. Errors in target and actual pay lead to reclaims – often substantial ones, and long after short-time working has ended.

Frequently asked questions

Questions and answers

How long can Kurzarbeitergeld be claimed in 2026?

Up to 24 months, until 31 December 2026 at the latest. This does not follow from § 104 SGB III, which specifies twelve months, but from the Fourth Ordinance on the Entitlement Period for Short-time Working Allowance, which is based on the regulatory power of § 109 Abs. 4 SGB III and applies from 1 January to 31 December 2026. From 1 January 2027, twelve months apply again, unless a new ordinance is issued.

How much is Kurzarbeitergeld?

Under § 105 SGB III it amounts to 60% of the net pay difference; for employees who meet the requirements for the increased benefit rate for unemployment benefit – essentially those with at least one child – it is 67%. The net pay difference is the difference between the pay without the loss of work (target pay) and the pay actually earned (actual pay).

Who submits the application?

The company, not the individual employee. The employer first notifies the loss of work and then submits a benefit application for each accounting month. It pays out Kurzarbeitergeld and has it reimbursed by the employment agency. Employees cannot submit the application themselves.

When is there a significant loss of work?

Under § 96 SGB III, when in the relevant calendar month at least a third of the employees in the company each have a pay loss of more than 10%. In addition, the loss must be due to economic reasons or an unavoidable event, and must be temporary and unavoidable. A permanent drop in orders does not support short-time working.

By when must short-time working be notified?

The notification of the loss of work must reach the employment agency in whose district the company is located, specifically in the calendar month in which short-time working begins. A retroactive notification for past months is not possible – a missed month-end costs the whole month.

Can my employer simply impose short-time working?

No. Short-time working requires a basis under employment law: a works agreement with the works council, a collective bargaining opening clause, or – where there is no works council – the consent of every person affected. Without it, the order is invalid and the full pay claim remains in place, regardless of what the employment agency reimburses the company.

What deadline applies to the monthly claims?

Kurzarbeitergeld is the major exception in SGB III: it is not applied for in advance, but strictly retrospectively. § 324 Abs. 2 Satz 2 SGB III expressly provides that Kurzarbeitergeld, the reimbursement of social security contributions and course costs are to be applied for retrospectively – reversing the advance-application rule that otherwise applies under § 324 Abs. 1. A strict deadline applies in return: under § 325 Abs. 3 SGB III, the benefit application for each calendar month must be submitted within a cut-off period of three calendar months; the period begins at the end of the month in which the days for which the benefit is claimed fall. If it is missed, the reimbursement for that month is permanently lost – even though the company has already paid Kurzarbeitergeld to its employees. Do not confuse this deadline with the notification of the loss of work: that must be made in the month in which short-time working begins, and the application follows afterwards.

What happens after short-time working ends?

The employment agency carries out a final review and checks all the claims – working-time records, pay documents and the underlying agreements. Faulty pay calculation lists regularly lead to reclaims, sometimes only years later. Clean documentation during short-time working is therefore more important than it may seem in day-to-day business.

Related official procedures

Qualifizierungsgeld (training allowance)
Training instead of a loss of work
60–67 %
Insolvency benefit
If it is still not enough
3 months' net pay
Unemployment benefit (Arbeitslosengeld I)
If notice is given anyway
60–67% of net pay

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