Greek gov't studies German 'Κurzarbeit' employment subsidy model to avoid layoffs, wage cuts in post-Covid-19 period

Monday, 18 May 2020 00:40
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The second phase of emergency financial support extended by the Greek government to wage-earners and businesses, amid the ongoing corona virus pandemic, will come next month, with reports in Athens pointing to the German "Κurzarbeit" model, in other words, a type of part-time or rotating employment.

The first and primary support extended over the initial 45-day period was an 800-euro benefit to employees whose businesses closed their doors due to restrictions aimed to prevent exposure to the Covid-19 virus.

The Κurzarbeit model offers businesses and employers the ability to cut daily work hours in half, with a commensurate reduction in pay, i.e. in half. However, the state covers an employee's reduced pay by 60 percent, i.e. a 20-percent reduction in pay for a half day's work.

The aim of the job subsidy plan is to prevent lay-offs once the initial 45-day suspension ends, as well as to avoid possible cuts in wages, and by extension an even further economic downturn. 


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