Germany Introduces COVID-19 Pay Top-Up Scheme

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Germany Introduces COVID-19 Pay Top-Up Scheme
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Recently, after witnessing the worsening conditions throughout the nation, the governmental bodies in Germany have decided to provide pay top-ups to workers who have been affected the most by COVID-19 pandemic this year. 

There are several short-term work subsidies and coalition parties who have come together and agreed on continuing the financial help to all the small and mid-sized companies finding it hard to survive in the pandemic. 

On Tuesday, the officials announced that the German economy has contracted by 9.7% in the quarter of April to June. 

The figure just got revised from the earlier one, which had 10.1% as the contraction rate. 

The official bodies of the CDU (Conservation Christian Democrats), the SPD (Social Democrats) and their centre-left coalition partners had long years of discussion on this and then released this statement. 

As per reports, the short-term subsidies had been due to expire in March 2021 but now has been extended until December 2021. 

This will protect numerous jobs throughout the nation by permitting employers to reduce the number of employees’ working hours while letting them work with the organization. With this, the state is trying its best to cushion the economic blow for the adversely affected workers. 

The scheme has been named as Kurzarbeit. This scheme has been credited to help unemployed youngsters in tough times. As per reports, Kurzarbeit was used to help reduce the unemployment rate in the financial crisis of 2008 to 2009. 

Olaf Scholz, the Finance Minister of Germany, told that the extensions announced could cost up to €10bn (£9bn).

There are other several countries who have been facing the same issues at the moment and have decided to go with other approaches to overcome it. 

For more updates, stay tuned with us!

Source: https://www.bbc.com/news/business-53918560