⏱️ Germany Kurzarbeitergeld Calculator (60% / 67%)

Kurzarbeitergeld (KuG) is Germany's short-time work allowance: a wage-replacement benefit paid by the Bundesagentur für Arbeit when a company temporarily cuts working hours because of an economic slowdown, a seasonal order shortage, or an unavoidable external event. Rather than dismissing trained staff, the employer reduces their hours and the state steps in to replace the larger part of the lost net pay. During the 2008-2009 financial crisis and again in the 2020 pandemic this instrument preserved millions of jobs, which is why economists like to call it Germany's employment stabiliser; comparable schemes in France and Spain are known as chômage partiel or ERTE.

The amount follows a strictly defined formula. The basis is the pauschalierte Nettoentgelt, the statutory flat-rate net pay of § 96 SGB III: the gross target salary for the lost hours (the Soll-Entgelt) minus flat employee shares of social insurance at 2026 rates. On that basis the Agentur für Arbeit pays 60%, or 67% for anyone with at least one child entitled to Kindergeld (§ 95 SGB III). In practice the allowance therefore works out to roughly 47% to 53% of the previous gross wage — 52.83% for an employee with a child outside Saxony, 47.13% for a childless one. Because the flat-rate method ignores income tax and works with average contribution rates, the estimate is quick and usually close to the actual payment.

Before any money flows, three conditions must be met. The employees affected must lose at least 10% of their monthly wage in the reference period, the reduction of working hours must be temporary and economically motivated, and the employer must file the necessary display and applications with the Agentur für Arbeit — employees themselves cannot apply. KuG is normally granted for up to 12 months. The allowance is tax-free, but the tax office applies the Progressionsvorbehalt to it, and health and long-term care contributions continue to be paid on the KuG itself. How much of the wage is actually replaced therefore depends on the family situation and the regional care-insurance rate, never on seniority or performance.

This calculator implements the 2026 flat-rate formula. Enter your monthly Soll-Entgelt, tick whether at least one child entitled to Kindergeld lives in your household, and tick the Saxony box if you are subject to Saxon care insurance, which is 0.5 percentage points higher. You immediately get the flat deduction percentage, the pauschal net, the monthly Kurzarbeitergeld, its share of your gross wage, and the net gap you still have to absorb. To see what you normally take home, run the same gross salary through our Germany gross-to-net salary calculator, and use the general salary calculator to break a new offer down into hourly, weekly and monthly figures. Hours actually worked and overtime during short-time work change the payout in ways this flat estimate does not capture, and if the situation later ends in dismissal, the German notice period (Kündigungsfrist) calculator tells you how much warning your employer must give.

The computation mirrors the two statutory steps of § 95 and § 96 SGB III and adds two planning figures of its own.

Step 1, flat-rate net pay. Start with the monthly gross target pay (Soll-Entgelt) that would have been earned without the hour cut. Deduct the flat employee contribution shares valid in 2026: 9.3% pension insurance (RV), 1.3% unemployment insurance (AV), 7.3% statutory health insurance (KV) plus half of the average Zusatzbeitrag of 2.9%, i.e. 1.45%, and 1.8% care insurance (PV) for employees with a child or 2.1% for childless employees including the Kinderlosenzuschlag. That sums to a deduction of 21.15% with a child and 21.45% without one. Employees in Saxony pay 0.5 percentage points more in PV, so their totals are 21.65% and 21.95%. The pauschalierte Nettoentgelt is therefore gross multiplied by one of the four net factors 0.7885, 0.7855, 0.7835 or 0.7805. Employers may alternatively compute each employee's exact net pay, but the flat route shown here is the one used in practice because payroll systems can apply it automatically.

Step 2, the 60/67 rate. Kurzarbeitergeld equals the pauschalierte Nettoentgelt times 67% with a Kindergeld child, otherwise times 60%. For a gross salary of 3,000 euro with a child, the flat net is 3,000 x 0.7885 = 2,365.50 euro and the allowance 2,365.50 x 0.67 = 1,584.89 euro. Childless, the same salary yields 3,000 x 0.7855 = 2,356.50 euro and 2,356.50 x 0.60 = 1,413.90 euro. At 2,500 euro with a child the result is 2,500 x 0.7885 = 1,971.25 x 0.67 = 1,320.74 euro.

Derived metrics. Two extra numbers make the result easier to plan with. KuG as a share of gross divides the allowance by the original gross pay: 0.7885 x 67% = 52.83% with a child, 0.7855 x 60% = 47.13% childless, and 52.49% or 46.83% respectively in Saxony. It answers the practical question of how much of the old gross wage returns as short-time work pay. Monthly net loss subtracts the allowance from the full net pay: for 3,000 euro with a child, 2,365.50 - 1,584.89 = 780.61 euro per month of fully lost hours. If you still work part of your hours, the employer tops up the actual Ist-Entgelt, so the real shortfall is smaller than this worst-case figure.

Two statutory side effects are worth remembering even though the calculator does not quantify them. The KuG itself remains subject to health and care insurance contributions, which the employer advances and the Agentur für Arbeit reimburses. And although the allowance is tax-free, the Progressionsvorbehalt means it is counted when the tax office determines your marginal rate, so a parallel salary or a later raise can be taxed higher as a result. The tables below show the complete rate matrix and worked examples at 2,500, 3,000 and 3,500 euro.

The four statutory scenarios differ only in the care-insurance share and the child rate. The first table shows the resulting flat deductions, net factors and the effective share of gross pay that Kurzarbeitergeld replaces; the second runs the numbers at typical monthly salaries outside Saxony.

Worked examples at typical salaries, with and without a Kindergeld child (outside Saxony):

The pauschalierte Nettoentgelt deducts the employee shares of the 2026 social-insurance contributions at flat rates. Employees in Saxony pay a care-insurance surcharge of 0.5 percentage points.

1. Enter the monthly gross target pay (Soll-Entgelt) you would earn without the reduction of hours.
2. Tick the box if at least one child entitled to Kindergeld lives in your household (67% rate).
3. Tick the Saxony box if you pay Saxon care insurance, which adds 0.5 percentage points to PV.
4. Click Calculate to see the flat net, the KuG amount, its share of gross and the monthly net loss.
5. Compare the allowance with your normal net pay and use the net loss figure for budget planning.

When do I get 67% instead of 60% Kurzarbeitergeld?

The raised rate of 67% applies if you have at least one child entitled to Kindergeld. This includes your own children, stepchildren living in your household and foster children; it is the Kindergeld entitlement that counts, not the child's age alone, so adult children in first training or studies can qualify as well.

What exactly is the pauschalierte Nettoentgelt?

It is the flat-rate net pay of § 96 SGB III: gross pay minus flat employee shares of social insurance. In 2026 these are RV 9.3%, AV 1.3%, KV 7.3% plus 1.45% average Zusatzbeitrag, and PV 1.8% or 2.1%, giving total deductions of 21.15% with a child and 21.45% without. The employer may apply this simplification instead of computing each employee's exact net pay.

For how long can I receive Kurzarbeitergeld?

The standard maximum is 12 months. In past downturns the period was temporarily extended by statute, but that is a political, situation-dependent decision; this calculator assumes no extension. Ask your employer or the Agentur für Arbeit about the period that applies in your case.

Is Kurzarbeitergeld taxed?

The allowance itself is income-tax-free, but it falls under the Progressionsvorbehalt: it is counted when the tax office determines your rate, so tax on other income such as a part-time salary can rise. Many employees notice this only with the annual assessment, so a tax reserve is wise.

Who has to apply for Kurzarbeitergeld?

Only the employer can apply. The company informs the works council where one exists, displays the loss of working hours to the Agentur für Arbeit and then submits the employee-specific applications, usually together with the payroll. Employees should check their pay slips and the KuG amounts shown there.

Why is my KuG less than 60% of my gross pay?

Because the 60% or 67% apply to the flat net, not to gross. After the 21.15% to 21.95% flat deduction, 67% of the net equals about 52.8% of gross and 60% equals about 47.1%. If your payout differs noticeably, individually computed net pay or hours actually worked may be the reason.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Tick the child box only if the child qualifies for Kindergeld — your own child, your partner's child living in the household, or a foster child placed with you; the 7-point difference is worth about 171 euro a month at a 3,000 euro salary, so the distinction pays off. Employees in Saxony should tick the second box as well, because the higher care-insurance share shaves another 9 euro off the flat net at the same salary. Keep in mind that the 10% wage-loss threshold refers to the pay lost in the reference period, not merely to the number of cancelled hours, and that accumulated working-time accounts are usually drained before KuG starts. Before agreeing to short-time work, ask the employer or works council how the reduction will be distributed over the coming months, and check the KuG-Bescheinigung against your last pay slips once it arrives. Put the monthly net loss the tool shows into your budget and confirm that fixed costs such as rent, insurance premiums and loan instalments remain covered; the result is a monthly figure, so half a month of short-time work roughly halves the allowance. Because of the Progressionsvorbehalt, employees with extra income often owe tax at the annual assessment — setting part of the difference aside avoids surprises. Toggling both checkboxes shows the full corridor between roughly 47% and 53% of gross, which is useful when negotiating a topping-up agreement. As a rule of thumb, every 100 euro of gross salary returns between 47 and 53 euro of Kurzarbeitergeld.