What changed
Germany has extended the maximum duration of short-time work benefits (Kurzarbeitergeld) from the standard 12 months to up to 24 months, valid until 31 December 2026. This allows companies in economic difficulty to keep workers on reduced hours for longer without having to make them redundant, with the state subsidising a portion of the lost wages.
Who is affected
Employees in companies currently on short-time work (Kurzarbeit) schemes can remain on the programme for longer without losing their jobs. Employers who have already exhausted the standard 12-month period can continue claiming Kurzarbeitergeld until the end of 2026.
What to look out for
→ Affected employees do not need to take action — your employer manages the application. If your company has been on Kurzarbeit for 12 months, ask your HR department or works council whether the extension has been applied for.
⚠️ This explanation was created with AI assistance and may be inaccurate or incomplete. It is not legal advice. Before taking action, check the official text and consult a qualified lawyer.
Original law: KUGBEV-4 — Check the official text before relying on this explanation.