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Short-Time Work Allowance Calculator 2026

Calculate your short-time work allowance (Kurzarbeitergeld) and compare your net income with and without KuG. The calculator takes all taxes and social security contributions into account.

Your details

e.g. at 50% short-time work: half of your regular salary

About the short-time work allowance (Kurzarbeitergeld, KuG)

The short-time work allowance is a benefit paid by the Federal Employment Agency (Bundesagentur für Arbeit, BA) to support employees when working hours are cut. The employer registers short-time work, and the BA pays a percentage subsidy on top of the reduced wage.

Benefit rates:

  • • Without children: 60% of the net pay lost
  • • With children: 67% of the net pay lost
  • • Maximum duration: generally 6 months (up to 24 months in times of crisis)

Key points:

  • • The KuG is tax-free (no deduction of work-related expenses possible)
  • • Employer social security contributions must continue to be paid
  • • KuG does not replace income tax
  • • While receiving KuG, unemployment insurance contributions do not apply

Note: This tool provides a general estimate. For exact information, contact the Federal Employment Agency or a tax advisor.

Short-time work allowance 2026: how it is calculated

Short-time work (Kurzarbeit) helps companies bridge slow periods without laying off staff. Part of the lost wages is replaced by the short-time work allowance (Kurzarbeitergeld, KuG) from the Employment Agency: 60 % of the net pay difference, or 67 % with a child. Our calculator takes your full-time and your reduced gross salary and estimates the expected short-time work allowance and your total monthly income during short-time work.

The net pay difference: the core of the calculation

The basis is not the gross wage lost, but the difference between two flat-rate net values: the target pay (Soll-Entgelt – net without short-time work) and the actual pay (Ist-Entgelt – net from the wage actually paid). You receive 60 or 67 % of this difference. Because the calculation uses flat rates, individual allowances can lead to slight deviations. Your tax class (Steuerklasse) has a major influence on the result – switching tax class can pay off during longer periods of short-time work.

Short-time work 100 (Kurzarbeit Null)

If work stops completely (“Kurzarbeit Null”), you receive no wage from your employer, only short-time work allowance based on your full previous net pay. If a dismissal is looming afterwards, take a look at our unemployment benefit calculator – note that ALG I is calculated from your original salary before short-time work, not from the reduced one.

Frequently asked questions about short-time work allowance

How much is the short-time work allowance in Germany?⌄
The short-time work allowance (Kurzarbeitergeld) amounts to 60 % of the net pay difference – the gap between the flat-rate net wage before and during short-time work. Employees with at least one child (a child allowance factor of at least 0.5) receive 67 %.
Who pays out the short-time work allowance?⌄
The employer calculates the short-time work allowance and pays it out together with the remaining wage. The Employment Agency (Agentur für Arbeit) then reimburses the employer. For employees, nothing changes about how they get paid – the money still comes from the employer.
For how long can I receive short-time work allowance?⌄
The standard statutory duration is 12 months. The federal government can extend the duration to up to 24 months by decree, as it has done several times in periods of crisis.
Is the short-time work allowance tax-free?⌄
The short-time work allowance itself is tax-free, but it is subject to the progression clause (Progressionsvorbehalt): it raises the tax rate applied to your other income. Anyone who received more than 410 euros of short-time work allowance in a year is therefore required to file a tax return – which can lead to back payments.
What happens to my pension and health insurance during short-time work?⌄
You remain fully covered by health, long-term care, pension and unemployment insurance during short-time work. For the lost working hours, the employer pays pension contributions based on 80 % of the lost gross wage, so pension entitlements decrease only slightly.
May I take a side job during short-time work?⌄
Yes, but the additional earnings are generally offset against the short-time work allowance if the side job is taken up only after short-time work has started. A side job that already existed beforehand remains exempt. Depending on your situation, a minijob can be attractive – our minijob calculator shows the details.

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