I've talked a bit over the past month about German short-time work, where the government steps in to pay a fair portion of your check.....if you aren't working 160 hours a month.
So ARD (public TV, Channel One) laid out the changes coming over the next couple of months. Remember, short-time existed long before Covid-19 came along and has often been used in recession periods that Germany had.
Normally, a worker will get 60 percent of his 'normal' base pay (net), with parents getting 67 percent.
Right now, during the crisis period....if your hours are reduced by 50-percent, then you get 70 percent, with parents getting 77 percent....after the fourth month of short-work.
After the seventh month of short-work, your percentage goes up to 80-percent, and parents getting 87-percent.
Under the present rules....it'd all end by the 12th month (figure around March/April of 2021). If the rule change occurs....March 2022 is the next deadline for ending this.
Helping or hurting people? It basically convinces some regular companies to keep hoping the economy will return, and NOT to fire/terminate employees. If you didn't trust the economy and felt it was better to let people go....that's your own situation.
As for the idea that 70 or 80 percent of regular pay will cover everything? That's probably the biggest joke of the discussion. Most working-class Germans will tell you that they are marginally getting by with 70-percent of their pay scale, and they've cut back on literally everything.....to survive. These are the people who aren't going on trips this year, and they aren't planning any purchases for refrigerators or washers.
On the positive....they can be pleased that they have a job, and some basic income going on....while waiting for some Jesus-cure on Covid-19.
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