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Applying for Germany's integration subsidy — before the contract

The integration subsidy (Eingliederungszuschuss, EGZ) is a contribution from the employment agency (Agentur für Arbeit) or the Jobcenter towards the wages of a new hire whose placement is hampered by reasons lying in the person (§ 88 SGB III). It can reach up to 50 percent of the relevant pay for up to twelve months (§ 89 sentence 2 SGB III). Two things decide between a grant and a clawback: the application must be filed BEFORE the employment contract is signed (§ 324(1) sentence 1 SGB III), and after the subsidy ends a RETENTION PERIOD (Nachbeschäftigungszeit) runs, whose early termination without a statutory reason triggers partial repayment (§ 92(2) SGB III). There is no legal entitlement.

Up to date for 2026 — verified on September 23, 2026Official procedure, no printed formGuide: about 40 min

Deadlines

Application: BEFORE the employment contract is concluded
§ 324(1) sentence 1 SGB III — employment-promotion benefits are paid only if applied for before the event giving rise to them; a late application can be admitted only to avoid undue hardship (sentence 2)
Subsidy period: up to twelve months
§ 89 sentence 2 SGB III; up to 36 months for employees aged 55 or over if the subsidy began by 31 December 2028 (§ 89 sentence 3); special rules for people with disabilities in § 90 SGB III
Retention period: as long as the subsidy period, at most twelve months
§ 92(2) sentence 5 SGB III — if employment ends during the subsidy or this period, the subsidy must be partly repaid (sentence 1)

Documents to prepare

  • The company's BA account for the online questionnaire and the online application
  • The company's establishment number (Betriebsnummer)
  • Details of the new hire: registration as unemployed or job-seeking, any employment with you in the last four years
  • A description of the post, the expected reduced performance and the training need
  • Planned regular pay and the relevant collective agreement or local customary rate
  • A copy of the signed employment contract — after the questionnaire, never before
See the procedure on the official site

No form is attached to this procedure: the link leads to the official page that describes it.

What this page gives you

The guide above and the link to the official site. ActioFin does not produce any document for this page: whatever you fill in or file is done on the official medium.

Who this applies to

  • Employers filling a vacancy with someone registered as unemployed or job-seeking, or receiving basic income support (Grundsicherungsgeld), whose placement is hampered for personal reasons (§ 88 SGB III)
  • Employers whose new hire will at first perform below the usual level and therefore needs longer training than is customary in the business (reduced performance, § 89 sentence 1 SGB III)
  • Part-time posts too, provided the job is subject to social insurance
  • Temporary-work agencies, where they themselves bear a financial disadvantage that they explain in the application
  • NOT an employer who ended someone else's employment in order to obtain the subsidy (§ 92(1) no. 1 SGB III)
  • NOT an employer hiring a person who worked for it, subject to social insurance, for more than three months in the four years before the subsidy starts (§ 92(1) no. 2 SGB III)
  • NOT where only the customary induction is needed, or where the person could be placed without support

Worked example

Tischlerei Brandt GmbH hires a long-term unemployed joiner

Jonas Weber had been unemployed for two years, and the joinery expects a much longer induction than usual. BEFORE the contract is signed, the managing director completes the employment agency's online questionnaire: the application must precede the conclusion of the employment contract (§ 324(1) sentence 1 SGB III). The agency grants, at its discretion, a subsidy fixed at the outset in monthly flat amounts (§ 91(2) SGB III) — in this example EUR 1,100 a month for eight months, EUR 8,800 in total. The retention period equals the subsidy period, i.e. eight months (§ 92(2) sentence 5). In the third month after that, the joinery wants to give the post to someone else and dismisses Jonas without any of the reasons listed in § 92(2) sentence 2. Result: partial repayment. It is capped at half of the subsidy paid, here EUR 4,400, and may not exceed the amount paid in the twelve months before the employment ended, here EUR 8,800 (sentence 3); the unsubsidised retention months already served are taken into account pro rata (sentence 4), so EUR 4,400 is the ceiling and the actual claim is lower. Had the dismissal been justified by Jonas's conduct, no repayment would be due at all (sentence 2 no. 1). Amounts are illustrative; the agency sets level and duration case by case.

How to fill it in, step by step

  1. Check that the person is registered as unemployed or job-seeking, or receives basic income support, and that their placement is hampered for personal reasons (§ 88 SGB III).
  2. Check the exclusions: no prior employment with you of more than three months in the last four years, no dismissal of someone else to obtain the subsidy (§ 92(1) SGB III).
  3. Complete the employment agency's online questionnaire BEFORE the employment contract is concluded (§ 324(1) sentence 1 SGB III), and have the employer service (Arbeitgeber-Service) confirm the timing.
  4. Describe the reduced performance and the training need precisely: level and duration depend on them (§ 89 sentence 1 SGB III).
  5. Complete the online application that the agency then makes available in your BA account, and send it with a copy of the signed employment contract.
  6. Check the grant notice: flat monthly amount, subsidy period and therefore the length of the retention period (§ 91(2), § 92(2) sentence 5 SGB III).
  7. Report changes, such as lower pay, through the case overview: the flat amounts are then reduced (§ 91(2) sentence 2 SGB III).
  8. At the end of the subsidy, submit the final declaration (Schlusserklärung), and after the retention period the continued-employment declaration (Weiterbeschäftigungserklärung) — online from the case overview or on the agency's forms.

Good to know

  • No entitlement: the employment agency or the Jobcenter decides, and sufficient budget funds must be available.
  • The relevant pay is the regularly paid wage, capped at the collectively agreed or locally customary rate and at the contribution ceiling for unemployment insurance, plus the flat-rate employer share of the total social insurance contribution (§ 91(1) sentence 1 SGB III).
  • One-off payments such as Christmas or holiday bonuses do not count (§ 91(1) sentence 2 SGB III).
  • For people with disabilities and severely disabled people: up to 70 percent and up to 24 months; for especially affected severely disabled people up to 60 months, from age 55 up to 96 months (§ 90(1) and (2) SGB III).
  • Under § 90 the amount falls after twelve months by ten percentage points a year, never below 30 percent; for especially affected severely disabled people only after 24 months (§ 90(4) SGB III).
  • No repayment where the employer was entitled to dismiss for reasons of the employee's person or conduct or for urgent operational reasons, where the employee leaves on their own initiative for a reason the employer is not responsible for, or where the minimum age for the statutory old-age pension has been reached (§ 92(2) sentence 2 SGB III).
  • At the Jobcenter the legal basis is § 16(1) sentence 2 no. 5 SGB II; at the employment agency §§ 88 to 92 SGB III — as the Federal Employment Agency's page states.

Common mistakes

  • Signing the contract first and applying afterwards. Benefits are paid only if applied for before the event giving rise to them (§ 324(1) sentence 1 SGB III); the Federal Employment Agency names the conclusion of the employment contract expressly.
  • Forgetting the retention period. It equals the subsidy period, at most twelve months, and an early termination without a statutory reason triggers partial repayment (§ 92(2) SGB III).
  • Treating 50 percent as the standard rate. It is a ceiling (§ 89 sentence 2 SGB III); level and duration follow the reduced performance.
  • Re-hiring a former employee with a subsidy. More than three months of insured employment with you in the last four years excludes it (§ 92(1) no. 2 SGB III).
  • Including a Christmas bonus in the base. One-off pay is disregarded (§ 91(1) sentence 2 SGB III).
  • Failing to submit the continued-employment declaration. The agency requires it after the retention period.

Frequently asked questions

How much is the integration subsidy?

Up to 50 percent of the relevant pay for up to twelve months (§ 89 sentence 2 SGB III); up to 70 percent for people with disabilities (§ 90 SGB III). The agency fixes it at the outset in monthly flat amounts (§ 91(2) SGB III).

Can I apply after hiring?

As a rule, no. Employment-promotion benefits are paid only if applied for before the event giving rise to them (§ 324(1) sentence 1 SGB III). The agency may admit a late application only to avoid undue hardship (sentence 2).

How much must I repay if the employment ends early?

At most half of the subsidy paid, and no more than was paid in the twelve months before the employment ended; unsubsidised retention time is taken into account pro rata (§ 92(2) sentences 3 and 4 SGB III). For the reasons listed in sentence 2, no repayment is due.

Is there a right to the subsidy?

No. The statute is worded as a discretionary benefit (§§ 88, 89 SGB III), and the Federal Employment Agency states that there is no legal entitlement and that sufficient budget funds must be available.

Is a part-time post eligible?

Yes, provided the job is subject to social insurance.

Go further

Related forms

Official sources

Read in German

Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.