1/17 – Non-wage labour costs

Shipping companies can receive a full reimbursement of the employer’s share of social security contributions they have paid. This federal subsidy primarily benefits shipping companies that operate ships flying the German Flag in international maritime trade and pay social security contributions for their seafarers in Germany.

Until the end of 2016, the federal government paid shipping companies fixed, lump-sum subsidies upon application to cover their non-wage labour costs. Since 1 January 2017, maritime shipping companies have been able to apply for subsidies equal to their employer contributions to social security for their European seafarers.

The reimbursement of the full non-wage labour costs is the final component of a package of measures by the federal government aimed at strengthening training and employment in Germany as a shipping location. Further measures included amendments to the Safe Manning Ordinance and increasing the wage tax deduction in favour of employers from 40% deduction to 100%.