Business News
German government extends funding for short-work programmes
May 20, 2009, 10:04 GMT
Berlin - The German government decided on Wednesday to extend state subsidies for short-work programmes from 18 months to two years, to prevent job losses during the economic crisis.
The scheme enables companies to reduce employees' working hours and pay them only for the time worked, while the state supplements incomes to prevent salaries from dropping too drastically.
Under the proposals, which still need parliamentary approval, the state would top up employees' salaries by up to 60 per cent for childless people and up to 67 per cent for parents, for a maximum of 24 months.
The legislation is hoped to help long-term planning to bridge the crisis, by enabling companies to retain personnel if the economy suffers for an extended period of time.
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