Companies with at least 20 employees are obliged to give at least five percent of the jobs to severely disabled people. Minister of Labor Heil wants to improve the incentives and at the same time tighten the sanctions for violations. “Our country needs every clever head and every helping hand.”

If companies do not meet their obligation to employ severely disabled people, they should pay up to 720 euros a month as a compensatory levy to the state from 2024. This is provided for in a draft law that Federal Labor Minister Hubertus Heil submitted to the cabinet for a vote. With a new fourth level of taxation, the SPD politician wants to create an incentive for companies that, contrary to their obligation, do not employ a single severely disabled person. The previous fine for non-employment is to be abolished.

“Our country needs every clever head and every helping hand so that our prosperity is not reduced by a lack of skilled workers,” said Heil. “Unfortunately, too many people with disabilities are still unemployed, even though they have above-average qualifications.” Companies and businesses would be supported better and faster in hiring people with disabilities – through advice, financial benefits and subsidies for the workplace. “Everyone benefits from this,” said the minister. “Employers get well-trained and motivated employees, and we create participation and give urgently needed specialists better chances on the job market.”

Companies in Germany with more than 20 jobs are obliged to fill five percent of the positions with severely disabled people. If they don’t do this, the levy of 140 euros, 245 euros or 360 euros per unfilled compulsory job will be due – depending on how far the company is from the five percent target. The fourth level of 720 euros per month would be introduced for companies that do not employ a single severely disabled person despite the employment obligation: According to information from the Ministry of Labour, this is around a quarter of the employers who are obliged to employ them. The fourth stage is to be introduced on January 1, 2024 and would then be payable for the first time on March 31, 2025, when the levy for 2024 becomes due.