Germany's Disability Employment Framework: SGB IX, the 5% Quota, and the Ausgleichsabgabe

Overview

Germany's disability employment law is anchored in Sozialgesetzbuch IX (SGB IX) — Book Nine of the Social Code, which consolidates rehabilitation and participation law for people with disabilities. SGB IX was created in 2001; the Bundesteilhabegesetz (BTHG — Federal Participation Act), promulgated in December 2016, was its largest reform. Under the BTHG, the general part and the law on severely disabled people became Parts 1 and 3 of the new SGB IX from 1 January 2018.

The framework combines:

• An employment quota for severely disabled workers
• A levy (Ausgleichsabgabe) on employers who fall below quota
• State-level Integrationsämter (Integration Offices, in some states now called Inklusionsämter) providing employer support and enforcement
• Individual rehabilitation and participation rights
• Anti-discrimination protections under the Allgemeines Gleichbehandlungsgesetz (AGG)

Who Is Covered: Schwerbehinderung

German disability employment law focuses specifically on people with Schwerbehinderung (severe disability) — defined as a degree of disability (Grad der Behinderung, GdB) of at least 50. People with a GdB of at least 30 can be granted equal status (Gleichstellung — equalisation) if they could not otherwise obtain or keep a suitable job because of their disability.

GdB is assessed on application by the responsible state authority and graded in steps of ten from 20 to 100.

Around 7.8 million people in Germany were severely disabled at the end of 2025 — 9.4% of the population (Statistisches Bundesamt).

The 5% Employment Quota (§ 154 SGB IX)

Private and public employers with an annual average of 20 or more positions are legally required to fill at least 5% of those positions with severely disabled workers.

How positions are counted:

• Positions filled by severely disabled employees (and people with equal status) count toward the quota
• A severely disabled trainee counts as two mandatory positions, and the Federal Employment Agency can allow a person whose participation in work is particularly difficult to count for up to three

Compliance (2024, Bundesagentur für Arbeit):

Of around 181,000 employers subject to the obligation in 2024:

Public administration had the highest share of employers fully meeting the obligation (64%).

The Ausgleichsabgabe — Compensatory Levy

Employers who do not meet the 5% quota pay an Ausgleichsabgabe (compensatory levy) for each unfilled mandatory position, reported and paid once a year. The levy increases with the shortfall. A fourth, highest tier for employers with no severely disabled employees at all was introduced for 2024 by the Act to Promote an Inclusive Labour Market. Rates for the 2025 reporting year (employers with 60+ positions):

Source: Bundesagentur für Arbeit, Erläuterungen zum Anzeigeverfahren 2025. Smaller employers have separate rates.

The levy may only be used for special measures promoting the participation of severely disabled people in working life. It is administered by the Integrationsämter, which pass a share on to a federal compensation fund (Ausgleichsfonds).

Integrationsämter — State Integration Offices

Each German federal state (Land) has an Integrationsamt (in some states renamed Inklusionsamt), the primary state authority for disability employment matters. Functions include:

• Employer support: Grants for technical work aids and disability-appropriate workplace adaptations
• Special dismissal protection: Employers require the Integrationsamt's prior consent to dismiss a severely disabled employee — a significant employment protection right
• Workplace integration management (BEM): Integrationsämter can reward employers that introduce Betriebliches Eingliederungsmanagement (BEM) with premiums or a bonus
• Accompanying assistance at work: including psychosocial support
• Ausgleichsabgabe: Collecting the levy and using it for disability employment support

Betriebliches Eingliederungsmanagement (BEM)

BEM is a statutory process (§ 167 SGB IX) requiring employers to explore reintegration options with employees who have been unable to work for more than 6 weeks, continuously or repeatedly, within one year. BEM requires the employee's consent, but the employer must initiate it.

Integrationsfachdienste (IFD) — Integration Specialist Services

Integrationsfachdienste are specialist employment services for severely disabled jobseekers and employees, acting on behalf of the Integrationsämter or the rehabilitation agencies. IFDs:

• Serve as single points of contact for employers
• Find suitable jobs on the open labour market
• Accompany severely disabled people at the workplace for as long as needed
• Provide aftercare and crisis intervention

Inclusive Enterprises (Inklusionsbetriebe / § 215 SGB IX)

Inklusionsbetriebe (inclusive enterprises) are businesses or company departments on the open labour market that employ severely disabled people whose participation in work is particularly difficult. At least 30% of their workforce must be severely disabled, and as a rule the share should not exceed 50%.

Inklusionsbetriebe receive funding from the Ausgleichsabgabe.

Anti-Discrimination: The AGG and SGB IX

The Allgemeines Gleichbehandlungsgesetz (AGG) of 2006 aims to prevent or eliminate discrimination on grounds including disability (Behinderung). SGB IX also prohibits employers from discriminating against severely disabled employees because of their disability, and gives severely disabled employees a right to disability-appropriate workplaces and the necessary technical work aids, unless this would be unreasonable or disproportionately costly for the employer.

The Antidiskriminierungsstelle des Bundes (Federal Anti-Discrimination Agency) advises anyone who has experienced discrimination.

Key Statistics

Sources

• Statistisches Bundesamt (Destatis): press release, July 2026 — https://www.destatis.de/DE/Presse/Pressemitteilungen/2026/07/PD26_246_227.html
• Bundesagentur für Arbeit: Arbeitsmarktsituation schwerbehinderter Menschen 2025 (April 2026); Erläuterungen zum Anzeigeverfahren 2025
• SGB IX, AGG: gesetze-im-internet.de
• Antidiskriminierungsstelle des Bundes: antidiskriminierungsstelle.de

Last reviewed: September 2026.