Labour Market Package II 2009

The package negotiated by the social partners includes an additional Support for the labour market to the tune of €400 million by 2013, and covers the following points. In addition to curbing the unemployment rate, the aim is also to assist employees and jobseekers in acquiring additional qualifications to support.

• Phased retirement To make access to partial retirement easier for new cases, in 2010 the Minimum access age to remain at 53 years for women and 58 for men as before. This means the gradual increase was postponed by one year. From 2011 onwards, the retirement age will once again be raised by half a year annually. In 2014, the „final“ retirement age will finally be 55 and 60 years respectively. Furthermore, for new cases, the Continuous working time reduction compared to the block time agreement (full work performance during the ramp-up phase and no work performance during the ramp-down phase), which is advantageous because continuous reduction 90% the additional expenses from the AMS are to be covered and when Block time model only 55%. The additional burden arises from the fact that, for example, if an employee’s working hours are reduced by 50%, they still receive 75% of their original wage and social security contributions must continue to be paid at 100%.
• Education leave since 01.08.2009, subsidised educational leave can already be taken with an uninterrupted Minimum period of employment from six months to be agreed upon. Previously, educational leave was only possible if the employee had been employed by the company for one year. Minimum duration for the educational leave period, from three to two months reduced. The maximum duration of 12 months remained unchanged. This new regulation is limited until 31.12.2011.
• Short-time work Short-time work is the temporary reduction of normal working hours based on an agreement concerning labour and wage law (social partner agreement). The aim of short-time work is to Employment in the event of unforeseen and temporary economic difficulties to secure. As part of the Labour Market Package II, the Total duration for short-time work allowance of 18 months to date open 24 months extended. Furthermore, the subsidy increases from the 7th month by the difference between the employee's actual gross wage and the contribution basis for the employer's social security contributions payable before short-time work began. This measure came into effect on 1 July 2009 and is limited until 31 December 2012.

The labour market package is rounded off by the following measures:

• Unemployment insurance contribution the exemption from unemployment insurance contributions will, as of 1 September 2009, only apply to individuals who Reached the completed age of 58 to enter (up to the 57th year of life).
• Bonus/Malus System with effect from 1.9.2009 the bonus/malus system abolished. Consequently, there are no longer any advantages for hiring older workers (aged 50 and over) (abolition of the employer's share of the unemployment insurance contribution) nor any penalties (special contribution) for dismissing such employees.

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