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How germany got its furlough scheme right.
Government covid relief programs. Germany is expected to extend its pandemic furlough scheme to 24 months after angela merkel indicated that she welcomed the proposal to let the kurzarbeit programme run on. At the same time as germany extends its furlough scheme the uk government is in the stages of winding its own furlough scheme down. Under the german scheme the government makes up the shortfall for reduced working hours as well as for those who cannot work at all because of the.
First of all kurzarbeit germanys furlough scheme is being tested on an unprecedented scale. Again companies will need to pay workers so that they receive at least 80 per cent of their normal wage. In october the government contribution will reduce again to 60 per cent of wages up to a cap of 1875 for the hours the employee is on furlough.
How germanys kurzarbeit works and why it might have inspired rishi sunaks new plan pressure has been mounting on the government to continue its. This has prompted the labour party to challenge the uk governments decision. Its hoped the mega move will salvage the countrys economy after.
At the end of october the furlough scheme will end completely chancellor rishi sunak has. German furlough scheme explained. Workers in germany will stay on furlough until the end of next year in a move that will cost merkels government 27 billion.
The government has added 9billion to its job retentions budget which. At its height the scheme saw four million people receiving assistance. Germanys furlough scheme is called kurzabeit which translates to short work.
The government pays those on the scheme about 60 percent of their regular. The german furlough scheme known as kurzarbeit is open to any company which can demonstrate that at least 10 per cent of staff jobs are at immediate risk.
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