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Apply for Eingliederungszuschuss (integration subsidy)

Employment agency (Agentur für Arbeit) · Wage subsidy for employers

By the employerBefore hiring

The integration subsidy (Eingliederungszuschuss) is a subsidy towards wages that employers can receive when they hire a person whose placement is made more difficult for reasons relating to their person. It offsets an initial shortfall in performance – for example due to a lack of recent work experience, long-term unemployment, health restrictions or a change of industry.

Under § 89 SGB III it amounts to up to 50 percent of the relevant wage and is granted for up to twelve months. For employees who have reached the age of 55, the funding period can be extended to up to 36 months if the funding begins by 31 December 2028.

Two points decide success or failure. The application is submitted by the employer, not the person being hired – and under § 324 (1) SGB III it must be submitted before the employment relationship begins. An employment contract that has already been signed and work that has already started rules out the funding, even if all the substantive requirements are met. For applicants, this means: raise the possibility in the interview, not afterwards.

And a third point that was long missing from this page: for persons with disabilities and severely disabled people, it is not this framework that applies, but § 90 SGB III. There, the rate is up to 70 percent of the wage and up to 24 months. For particularly affected severely disabled people within the meaning of § 187 (1) no. 3 (a) to (d) SGB IX — and persons treated as equivalent to them whose placement is made more difficult for reasons relating to their person — it is even up to 60 months, and after reaching the age of 55, up to 96 months. Anyone calculating for this group of people on the basis of “50 percent for twelve months” is using the wrong provision.

Last updated28 August 2026
Legal basis§ 88 SGB III · § 89 · § 92 · § 324 (1)
VerificationChecked against gesetze-im-internet.de
Written and reviewed byAndrés Sánchez Botta
Independent information page: we are not the employment agency (Agentur für Arbeit), not an authority and not a paid advisory service — we do not submit applications on your behalf. All information comes from official sources and is explained here in simple terms; the competent body is always the authoritative source. The integration subsidy is a discretionary benefit paid to the employer. All information is provided without guarantee. We are neither lawyers nor tax consultants: we document administrative procedures and check the information against the official source — this is information, not legal or tax advice.
AmountUp to 50%Up to 70% for disabled employees
DurationUp to 12 monthsUnder § 90, up to 96
ApplicationBefore hiringExcluded afterwards
ApplicantThe employerNot the person themselves
Required documents

What you need

Details of the planned employment relationship

Activity, working hours, intended pay and planned start date. Important: planned – the application belongs in the phase before the contract is signed. A retroactive application after work has started is excluded under § 324 (1) SGB III.

Justification of the shortfall in performance

The core of the application. The employer must explain why the person to be hired cannot initially deliver full performance and what induction effort this involves – for example a long absence from the occupation, a change of industry, health restrictions or a lack of current practice.

CV of the person to be hired

This shows whether placement is made more difficult within the meaning of § 88 SGB III. Gaps in the CV, a change of industry or longer-term unemployment are, exceptionally, an argument for the funding here.

Evidence for particular groups of people

For persons with disabilities, the severe disability pass or equal-status notice; for people over 55, proof of age for the extended funding period. This evidence considerably widens the funding framework.

Employer's company details

Betriebsnummer (establishment number), contact person and bank details for payment. The subsidy is paid to the company monthly in arrears, not to the employed person.

Step by step

How to proceed

  1. 1

    Speak to the agency before signing the contract

    The employer contacts the employer service of the competent agency before the employment contract is concluded and the work is taken up. § 324 (1) SGB III leaves no room for manoeuvre here: an application submitted after work has started leads to refusal, no matter how clearly the requirements are met.

  2. 2

    Justify the shortfall in performance in concrete terms

    The agency funds the offsetting of a shortfall in performance, not the hiring as such. Describe specifically, therefore, what additional induction effort arises and how long it is expected to last – the amount and duration of the funding are derived from this.

  3. 3

    Negotiate the amount and duration

    Neither is fixed, but is based on the extent of the shortfall in performance and the requirements of the job. Up to 50 percent of the wage and up to twelve months form the framework; for employees over 55, up to 36 months, if the funding begins by 31 December 2028.

  4. 4

    Wait for the approval and only then hire

    Only sign the employment contract once the funding commitment is in place – or at least once the submission of the application is documented. The subsidy is then paid monthly in arrears to the company.

  5. 5

    Factor in the obligation to continue employment

    Under § 92 SGB III, the subsidy must be repaid in whole or in part if the employment relationship ends during the funding period or within a subsequent period in which continued employment is required. Build this commitment into your personnel planning from the outset, so that it does not come as a surprise later.

  6. 6

    Raise it yourself as an applicant

    You cannot apply for the subsidy, but you can bring it up – in the interview, not after you receive the offer. For smaller companies, it is often the argument that tips the balance. Ask your placement officer beforehand whether funding is realistic in your case.

Fee information

Costs and payment

Subsidy paid to the companyAmount and duration are negotiable
AmountUp to 50% of the wage
Standard durationUp to 12 months
From age 55Up to 36 months
Deadline for the extended durationMust start by 31.12.2028
Application after work has startedExcluded
RepaymentOn early termination

The subsidy is paid to the employer, not to the employed person, and amounts under § 89 SGB III to up to 50 percent of the relevant wage for up to twelve months. For employees who have reached the age of 55, the funding period can be extended to up to 36 months, provided the funding begins by 31 December 2028 – a time-limited rule worth keeping in mind for longer-term personnel planning. The amount and duration are not fixed, but depend on the extent of the shortfall in performance and the requirements of the job; they are therefore a matter for discussion with the employer service. Two restrictions belong in every calculation. First, § 324 (1) SGB III applies: the application must be submitted before the employment relationship begins; after that, funding is excluded, even with otherwise perfect suitability. Second, § 92 SGB III provides for a repayment obligation if the employment relationship ends during the funding period or in the subsequent period requiring continued employment – the subsidy is therefore tied to a permanent hire, not to a fixed-term trial.

Good to know

Important notes

Apply before hiring — otherwise not at all. § 324 (1) SGB III excludes retroactive funding. The signed employment contract with work already begun is the event giving rise to the benefit; after that, no justification helps.

The employer applies, not you. As an applicant, you cannot apply for the subsidy – but you can raise it in the interview. For small companies, it is often the argument that makes the hire possible.

Up to 36 months from age 55 — but time-limited. The extended funding period for people over 55 requires the funding to begin by 31 December 2028. After that it lapses, unless the legislator extends it.

What is funded is a shortfall in performance, not the hire. The agency offsets a specific induction disadvantage. An application that only expresses a wish for a subsidy, without describing the shortfall in performance, is refused.

Repayment on early termination. Under § 92 SGB III, the subsidy must be repaid in whole or in part if the employment relationship ends during the funding period or in the subsequent period requiring continued employment. This makes it a tool for permanent hires, not trials.

There is a different instrument for a trial. Anyone who first wants to test whether it is a good fit should use a company-based measure under the AVGS – no employment relationship and no repayment obligation arises there.

There is no legal entitlement. The integration subsidy is a discretionary benefit. The employer service decides on a case-by-case basis on whether to grant it, as well as on the amount and duration.

It does not replace regular pay. The employment relationship is a normal one, to be paid under the applicable collective agreement or contract. The subsidy changes neither your pay nor your rights – it goes entirely to the company.

Avoid these mistakes

Common mistakes

Hiring first, then applying. The most expensive mistake on the employer's side. § 324 (1) SGB III allows no retroactive effect: up to twelve months of subsidy at up to 50 percent of the wage are then irretrievably lost.

Not justifying the shortfall in performance. What is funded is the offsetting of a specific induction disadvantage. Without this explanation, the application lacks its core.

Overlooking the repayment obligation. If the employment relationship ends during the funding period or in the subsequent period requiring continued employment, repayment is demanded. Anyone planning the subsidy as trial funding is miscalculating.

Wanting to use the subsidy for a trial. That is what the company-based measure under the AVGS is for – without an employment relationship and without repayment risk.

Raising it too late as an applicant. After the offer, it is too late, because the application must be submitted before the start. Bring up the possibility in the interview.

Ignoring the deadline for the 36-month rule. It only applies if the funding begins by 31 December 2028. For long-term personnel planning, this is a relevant cut-off date.

Frequently asked questions

Questions and answers

How much is the integration subsidy?

Under § 89 SGB III, up to 50 percent of the relevant wage. The specific amount is not fixed, but is based on the extent of the shortfall in performance and the requirements of the job – it is determined together with the agency's employer service.

Does this also apply in the case of a disability?

No, a separate and considerably wider framework applies there. § 90 SGB III allows up to 70 percent of the wage and up to 24 months for people with disabilities and severely disabled people. For particularly affected severely disabled people within the meaning of § 187 (1) no. 3 (a) to (d) SGB IX, and persons treated as equivalent to them, it is up to 60 months, and after reaching the age of 55, up to 96 months. The subsidy is reduced by ten percentage points a year after twelve months, and for particularly affected severely disabled people, only after 24 months.

For how long is funding provided?

Usually up to twelve months. For employees who have reached the age of 55, the funding period can be extended to up to 36 months – provided the funding begins by 31 December 2028. This extended duration is itself time-limited and should be factored into longer-term personnel planning.

Who submits the application?

The employer, not the person being hired. The subsidy is paid to the company and offsets its additional effort during induction. As an applicant, you cannot apply for it – but you can raise it in the interview, which can tip the balance especially with smaller companies.

What happens if the application is submitted only after hiring?

Then it is refused. § 324 (1) SGB III states that employment promotion benefits are only granted if they were applied for before the event giving rise to the benefit occurred – here, before the employment relationship began. Retroactive approval is excluded even if all the substantive requirements would have been met. § 324 (1) sentence 2 does allow the agency, to avoid undue hardship, to permit a late application – but this is a narrowly interpreted discretionary decision for genuine exceptional cases, not something you can plan around.

Who counts as hard to place?

§ 88 SGB III refers to people whose placement is made more difficult for reasons relating to their person. In practice, this includes, among others, long-term unemployment, a lack of current work experience, a change of industry, health restrictions, or returning to work after a long family break. What matters is that this results in a specific induction effort.

Does the subsidy have to be repaid?

Under certain circumstances, yes. § 92 SGB III provides for repayment in whole or in part if the employment relationship ends during the funding period or within a subsequent period requiring continued employment. The integration subsidy is therefore a tool for permanent hires – anyone wanting only a trial should instead use a company-based measure under the AVGS.

Does the subsidy change anything about my pay or my rights?

No. The employment relationship is a completely normal one, to be paid under the applicable collective agreement or contract, with all the usual rights. The subsidy goes solely to the company and is for you neither income nor a reason for worse terms.

Is there an entitlement to the subsidy?

No, it is a discretionary benefit. The employer service decides on a case-by-case basis on the approval as well as on the amount and duration. A well-justified application that specifically describes the shortfall in performance and the expected induction effort has considerably better prospects than a general enquiry.

Related official procedures

AVGS
Trial without repayment risk
Free of charge
Placement voucher
Private placement
€2,500
Unemployment benefit (Arbeitslosengeld I)
Until hiring
60–67% of net pay

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