Eingliederungszuschuss: Wage Subsidy for Employers in Germany

Hiring and state fundingLast updated: August 2026Reviewed by Vitalijs Kilsbach, founder & business coach

If you hire someone who finds it harder to get a job because of their personal circumstances – a gap in their employment history, a lack of experience or limited German – the state can partly compensate you for their wage costs. Here we explain what the Eingliederungszuschuss is, who it is for and how to minimise the risks when applying.

Employer discussing terms of employment with a new employee

What the Eingliederungszuschuss is, in plain terms

The Eingliederungszuschuss (EGZ, literally “integration wage subsidy”) is a support measure from the Agentur für Arbeit or the Jobcenter that is paid to the employer, not to the employee. The legal basis is §§ 88–92 SGB III and, for recipients of Bürgergeld, additionally § 16 SGB II.

The logic is this: if a person is harder to place in work precisely because of their personal circumstances – their health, long-term unemployment, a lack of professional experience or insufficient German – their productivity in the first months may be lower than is normally expected in the role. The state partly compensates the employer for this difference, so that the person receives the full wage for the position rather than a reduced rate.

An important detail

The Eingliederungszuschuss is an Ermessensleistung, meaning the office decides at its discretion. If the formal conditions are met, the employer is entitled to a decision free of errors of discretion (Ermessen), but not to an automatic right to a specific amount or duration – these are determined individually.

Who the subsidy suits – from a business perspective

For international entrepreneurs building a business in Germany, the programme is particularly relevant in one typical situation: hiring an employee – often someone who has also moved to Germany – whose German is still limited or who has no experience of working to German standards. These very barriers are explicitly mentioned among the grounds for granting the EGZ.

Job interview: an HR professional and an applicant shaking hands

Grounds the office considers as making employment more difficult

The length or frequency of previous unemployment
Health restrictions that do not yet allow full performance
No, or outdated, experience in the profession
Breaks in employment, for example for family reasons
Insufficient knowledge of German

The subsidy is not intended to cover the normal induction any new employee needs in the role, and it cannot be used simply to fill staff shortages or create new positions without a genuine need for a longer settling-in period.

Two colleagues reviewing documents together in a bright office

Amount and duration of the subsidy

The amount and duration depend on how far the employee’s productivity is reduced at the start and on the requirements of the specific job. Below are the legal limits; the actual decision may differ from them.

Employee category	Subsidy (share of the eligible wage)	Maximum duration
Standard case (§ 89 SGB III)	up to 50%	up to 12 months
Employees aged 55 and over	up to 50%	up to 36 months (if the subsidy starts by 31.12.2028)
People with disabilities (§ 90 Abs. 1 SGB III)	up to 70%, from month 13 minus 10 percentage points a year (minimum 30%)	up to 24 months
People with severe disabilities in special cases (§ 90 Abs. 2 SGB III)	up to 70%, from month 25 minus 10 percentage points a year (minimum 30%)	up to 60 months, from age 55 up to 96 months

The calculation is based on the wage actually and regularly paid on which social security contributions are due, up to the relevant contribution ceiling. The subsidy is paid to the employer monthly.

In practice, the office rarely approves the maximum rate and the maximum duration – the level of support is usually tied to how much time this particular person realistically needs to settle into the role at this particular company.

How to apply: the sequence of steps

Signing the employment contract as a condition for applying for the subsidy

Contact the local Agentur für Arbeit or Jobcenter before the employment begins
Check whether the applicant meets the criteria of the förderfähiger Personenkreis (eligible group), including registration as a job seeker
Submit the application in advance, before signing the employment contract, and record the date of submission
After a positive decision – conclude the employment contract and send it to the office
Wait for the written decision granting the subsidy before the work actually begins
During the subsidy period, meet your reporting obligations and keep the subsequent employment period in mind

What employers should watch out for

An application submitted after the work has actually started is generally rejected. A repeat subsidy for the same employee at the same employer is not granted if the person has already worked for you for more than three months in the last four years – with narrow exceptions for people with severe disabilities. Support may also be refused if there is a suspicion that a previous employment relationship was ended specifically in order to obtain the subsidy.

Subsequent employment obligation and repayment

Once the subsidy period ends, a Nachbeschäftigungspflicht usually applies – an obligation to keep the employee for the same length of time, but no longer than 12 months. If the employment ends during the subsidy period or the subsequent employment period, there may be an obligation to repay part of the funds received.

When repayment is usually not required

Dismissal for reasons relating to the employee’s conduct
Dismissal for urgent operational reasons
Resignation by the employee on their own initiative, through no fault of the employer
The employee reaching retirement age
The subsidy was granted for employing a person with a severe disability

The repayment amount is also capped: no more than half of the subsidy received and no more than the amount actually paid in the last 12 months before the employment ended.

The Eingliederungszuschuss in figures

Team discussing results together at a table in a modern office

~80,000jobs filled with an EGZ in 2022 (IAB data)

€466 mtotal programme spending in 2022

5.5 monthsaverage subsidy duration

According to the Institute for Employment Research (IAB), employees hired with this subsidy on average have more stable and longer-lasting employment than people with a similar profile who did not receive support. At the same time, the researchers stress that each case must be assessed individually, to avoid paying subsidies for hires that would have happened anyway.

The Eingliederungszuschuss and other hiring support measures

For a business expanding its team, the EGZ is only one of the state’s employment support instruments. Depending on the applicant’s status, other measures may also be relevant: for example Einstiegsgeld (§ 16b SGB II) for Bürgergeld recipients taking up work, or special support programmes for people with disabilities through the Integrationsamt. Which instrument suits you depends on the specific situation of the applicant and your company – clarify this individually with the Agentur für Arbeit or Jobcenter.

Frequently asked questions about the Eingliederungszuschuss

Can I get the subsidy if my company has only just been registered?

In general, yes – if the conditions on the employee’s side are met and the application is submitted in advance, before work begins. As the decision is at the office’s discretion, a preliminary consultation with the Agentur für Arbeit is particularly useful for new companies.

Does the subsidy apply to part-time work or a Minijob?

The Eingliederungszuschuss requires employment subject to compulsory social insurance. Part-time positions can generally be subsidised, but a Minijob usually cannot, because it does not create the standard social insurance obligation. Check the exact details with the office concerned.

Is the subsidy taxable?

The tax and contribution consequences depend on your company’s specific situation – discuss this with a Steuerberater (tax adviser).

What happens if the employee resigns early?

If the employee resigns on their own initiative and the employer is not at fault, there is generally no obligation to repay the subsidy. The final assessment in each case is made by the Agentur für Arbeit or Jobcenter.

Plan your hiring with the available support in mind

Programmes such as the Eingliederungszuschuss can noticeably reduce the burden on your payroll when you expand your team – but only if the application, deadlines and subsequent employment obligations are handled correctly. If you want to understand how these rules apply to your situation, or you are just planning to start a business in Germany, we invite you to book a personal consultation or join one of Vitavia Akademie’s education programmes. Together we will work out which support measures suit your project and help you avoid costly mistakes.

Legal notice: This article is for general information and educational purposes only and does not replace individual legal, tax or financial advice. Legislation, administrative practice and the internal instructions of the Bundesagentur für Arbeit may change and may be applied differently depending on the circumstances of the individual case. Every business owner’s and every employee’s situation is different, so no automatic right to a subsidy of any amount can be derived from this article. Before applying the approaches described, check the current requirements with the relevant official sources – the Agentur für Arbeit, the Jobcenter or other competent authorities – or consult a qualified professional (for example a Steuerberater or lawyer) before making important decisions. See also: Impressum and Datenschutz.