‘Part-time’ work in Germany, also known as Kurzarbeit, is a topic that raises many questions and doubts. In this article, we explain everything you need to know about it.
Kurzarbeit is the German term for part-time work. It is a form of employment in which employees work fewer hours than usual or than specified in their employment contract. Such reduced working hours can be due to various reasons, such as economic downturns, lack of orders or natural disasters.
Companies in Germany can introduce reduced working hours when they are faced with a significant loss of orders, for economic reasons or due to an unavoidable event. When introducing reduced working hours, the company must try to prevent the loss of orders, for example by giving employees leave. The company must also plan for a return to normal working hours in the near future.
Compensation for reduced working hours, known as Kurzarbeitergeld, is an unemployment insurance benefit. It is a form of financial support for employees who earn less or nothing at all during reduced working hours. This compensation is paid by the Federal Employment Agency (Arbeitsagentur) in Germany.
Compensation for reduced working hours is calculated on the basis of the net wages lost. As a rule, it amounts to 60 per cent of the lost net wage. If there is at least one child in the household, the compensation for reduced working hours is 67 per cent of the lost net wages.
In Germany, reduced working hours interfere with the employer’s and the employee’s obligations, so companies cannot unilaterally impose reduced working hours. The decision to introduce shortened working hours must be agreed with all employees who are to be affected or with the works council.
During reduced working hours, employers and employees pay into social security. For working time lost due to the introduction of shortened working hours, social security contributions are reduced to 80 per cent. These costs are borne solely by the employer, but are reimbursed by the Federal Employment Agency.
Anyone earning more than €410 of the part-time allowance is required to file a tax settlement. This is because although the part-time allowance is exempt from tax, it increases the tax rate on taxable income.
Leasehold workers (Leiharbeiteter) can work part-time if the company employing them allows this form of work. However, there must be a contract with the home employer and adequate insurance.
The employer is obliged to pay a worker on sick leave as if he or she were still working. The employee therefore does not lose his or her paycheck, but also does not receive special treatment.
Sweden is known not only for its high quality of life, but also for its high taxes. In 2026, both residents and people working temporarily in Sweden must navigate various forms of taxation. In this article, we take a closer look at the key aspects of the Swedish tax system.
Anyone who works or runs a business on Swedish territory is required to pay taxes. Failure to meet this obligation or incorrectly filing taxes in Sweden can lead to financial consequences – administrative fines and penalty interest.
The tax for non-residents, known as SINK, is a specific taxation system for people who work in Sweden for fewer than 183 days. The SINK tax rate is 25% and is deducted from wages directly by the employer. People taxed under SINK are not required to file an annual tax return, but they cannot benefit from tax deductions.
For those who are tax residents in Sweden, the system consists of two main taxes: municipal tax and state tax. Municipal tax ranges from 29% to 35.65%, depending on the taxpayer’s place of residence. State tax amounts to 20% on income exceeding 643,100 SEK. For people over 66, the threshold is higher – approximately 733,200 SEK.
People living outside Sweden who have earned income in Sweden are required to declare it in their home country’s tax return – even if tax has already been paid in Sweden. Under the double taxation avoidance agreement between Sweden and most countries, the proportional credit method applies. This means that income earned in Sweden must be declared in the country of residence, and the tax paid there can be partially offset against the domestic tax liability. In practice, even if no additional tax is due at home, the appropriate declaration must still be filed to fulfil the reporting obligation to local tax authorities and avoid potential penalties.
Sweden offers a wide range of tax deductions for individuals that can significantly reduce the tax burden. The most notable ones include:
To claim these deductions, all expenses must be properly documented, so it is important to keep all invoices and receipts.
Municipal tax in Sweden is mandatory for all individuals earning an income and depends on the taxpayer’s place of residence. Rates vary by municipality and range from 29% to approximately 35.65%, making it a significant element of the country’s tax system. In 2025, the national average municipal tax rate stood at 32.24%.
State tax in Sweden was introduced with higher earners in mind. It applies only to those whose annual earnings exceed 643,100 SEK, with a rate of 20% on the amount above that threshold. Those earning less are entirely exempt from this charge, which promotes fairness in taxation and supports lower-income individuals. This approach helps balance the tax system and encourages effective income redistribution across society.
The 90% Rule – the Key to a Favourable Tax Settlement
Foreign workers in Sweden who are tax residents of the country may claim these deductions provided that they earn at least 90% of their total global income in Sweden. It is also worth noting that Sweden has double taxation avoidance agreements with many countries, meaning that income earned in Sweden is not taxed again in the country of residence, though it may be taken into account when determining the applicable tax rate on domestic income.
People working in Sweden must be aware of their tax obligations and file accordingly. The Swedish tax system is quite complex, so it is advisable to entrust your tax return to a qualified professional. Bear in mind that the deadline for filing the previous year’s tax return with the Swedish Tax Agency is 2 May of the current year. The preliminary assessment you receive at your home address does not mean that your tax affairs have been fully settled.
When Poland joined the European Union, Poles working legally in Belgium became covered by social security and thus became entitled to a state pension. The state pension depends on the number of years worked and earnings; a minimum of 45 years of work is required to receive the full benefit.
As mentioned above, the amount of the state pension depends on the amount of contributions and the period of their payment. Occupational pensions are additionally financed by employers, offering better benefits under pension plans. Private savings, the third pillar, encourage individual saving for retirement.
To apply for a Belgian pension, you must meet several requirements. First of all, you must be at least 65 years old (although there are some exceptions). You must also have worked in Belgium for a sufficient number of years. For an employee pension, you must have at least 45 years of work, while for a self-employed or civil servant pension, at least 40 years of work are required.
Currently, the retirement age in Belgium is 65. According to the government’s plans, it will be gradually increased:
From 2025, it will be increased to 66.
From 2030, it will reach 67.
For people who reached retirement age before these changes were introduced, the rules in force at the time of their retirement will apply.
Temporary work in Belgium builds up pension capital, but it must be remembered that if the period of work is shorter than 14040 days (45 years), the benefit paid will be proportionally lower.
According to Belgian tax regulations, even the smallest income must be declared (settled) with the Belgian tax office. The settlement obligation also applies to Belgian pensions, even those amounting to several hundred euros. In the event of non-settlement or delay, the Belgian tax office may impose a penalty ranging from €50 to as much as €1,250, and the tax due may be increased from 10% to as much as 200%!
To meet our clients’ expectations, we have simplified our procedures to the maximum. To prepare your tax return, we need from you:
BorsukPodatki.pl has been successfully serving Polish and foreign temporary workers for many years. Bankers, seafarers, temporary workers use our services.
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The Kinderfreibetrag, also known as the child tax credit, is one of the key elements of the tax system in Germany that aims to provide financial relief to parents. In this article, we take a closer look at what the Kinderfreibetrag is, what its key elements are, who can benefit from it and what changes to this relief the German government envisage.
The Kinderfreibetrag is a tax credit that is available in Germany to parents or legal guardians of children. It is a form of support that aims to relieve the financial burden on families with children by reducing the tax base.
Kinderfreibetrag consists of two key elements:
The Kinderfreibetrag tax credit is available to parents or legal guardians of children under the age of 18. This relief is also available for children up to the age of 25, provided that certain criteria are met, such as continuing education or having no income of their own.
In Germany, parents have a choice between two forms of financial support: Kinderfreibetrag and Kindergeld. Kindergeld is a family allowance that is paid monthly for each child. The Kinderfreibetrag, on the other hand, is a tax credit that reduces the parents’ tax base.
The decision to choose one of these forms of support depends on the individual family’s financial situation. Usually, if a parent pays little or no income tax, it is more advantageous for him or her to benefit from Kindergeld. The tax office automatically includes the Kindergeld in the tax return, even if the parent opts for the Kinderfreibetrag.
The choice between “Kindergeld” and “Freibetrag” is automatically made by the German tax office (Finanzamt) as part of the annual tax return. The tax office calculates which option is more favourable for the taxpayer – whether receiving “Kindergeld” or taking advantage of the “Freibeträge für Kinder”. If the amounts of tax deductions exceed the benefit of “Kindergeld”, then deductions are applied, which may result in lower tax to be paid.
A key factor influencing this decision is family income. Families with higher incomes are more likely to benefit from the tax advantages of the ‘Freibetrag’, as this deduction can save them more tax than the ‘Kindergeld’ they receive.
According to the latest information, the Kinderfreibetrag tax relief is set to increase to almost €3,000 per child. This represents a significant increase compared to the current amount.
The Freibetrag für das Existenzminimum des Kindes (child subsistence allowance) is expected to amount to €6,024, and the BEA-Freibetrag (child tax credit) to €2,928. The total tax relief per child is therefore expected to amount to €7,952.
