Severe Disability Quota in Germany: Meet It or Pay the Compensatory Levy

Companies with at least 20 jobs on an annual average must meet a statutory quota for employing severely disabled people. Anyone who does not reach this quota pays a graduated compensatory levy for each unfilled mandatory position, and must report this to the Employment Agency (Agentur für Arbeit) every year.

In brief: Under §§ 154, 160 SGB IX (Book IX of the German Social Code), employers with at least 20 jobs on an annual average must meet a quota of 5% severely disabled employees. If mandatory positions remain unfilled, a graduated compensatory levy of 155 to 815 euros per unfilled mandatory position becomes due, which must be reported and paid every year by March 31.

Who is affected by the severe disability quota?

All employers are affected, whether companies, public authorities or other organizations, with at least 20 jobs on an annual average. They must fill at least 5% of these with severely disabled people, regardless of industry or legal form. What counts is the average over the entire calendar year, not the headcount on a single reference date; fluctuating months thus even out over the year. Anyone who stays below the threshold of 20 jobs is not subject to the employment obligation or the compensatory levy. A tool such as Company Audit shows which of these obligations apply to your company specifically.

What do you need to do in practice?

Several steps are needed to demonstrate the quota and to calculate the compensatory levy correctly. The process begins with a clean inventory of jobs and ends with timely reporting and, where applicable, payment:

1. Determine the annual average number of jobs (threshold: 20).
2. Compare the number of mandatory positions (5%) with the actual employment of severely disabled people.
3. Fill vacant mandatory positions where possible (also check whether contracts awarded to inclusion enterprises can be credited).
4. Submit the report and the calculation of the compensatory levy to the Employment Agency by 31.03.
5. Pay the compensatory levy on time.

An effective lever for reducing the levy is to award contracts to workshops for disabled people and inclusion enterprises: such contracts are credited and reduce the compensatory levy when vacant mandatory positions cannot be filled directly. This is particularly worthwhile for companies that cannot find suitable candidates for open mandatory positions in the short term but still want to reduce their levy burden. It is therefore worth checking before the annual report whether such contracts have already been awarded or can be awarded at short notice, and having the corresponding records ready for the report to the Employment Agency.

By when and how often must you report?

The report and calculation are due once a year by March 31, for the calendar year just ended. The report goes to the Employment Agency; it must be submitted regardless of whether the quota was met, because only the report shows whether and in what amount a compensatory levy is due. Since this is a recurring annual obligation, it is advisable not to leave the determination of the number of jobs and the comparison with the actual employment of severely disabled people until shortly before the deadline, but to prepare it early in the year.

What are the consequences of a violation?

If the quota is not met, a graduated compensatory levy becomes due for each unfilled mandatory position: 155, 275, 405 or 815 euros, depending on how far the actual employment rate falls short of the prescribed 5%. The larger the gap to the prescribed quota, the higher the amount per unfilled mandatory position. The tiered amounts were most recently increased, so companies should calculate with the rates currently in force. In addition to the compensatory levy, fines are possible if the annual report to the Employment Agency is omitted; the payment obligation and the reporting obligation are thus two separate risks, and both should be taken seriously.

The key points at a glance:

Frequently asked questions

From when does the obligation to employ severely disabled people apply?

The obligation applies to employers with at least 20 jobs on an annual average. They must then fill at least 5% of these positions with severely disabled people, according to §§ 154, 160 SGB IX. If your company stays permanently below this threshold, the obligation does not arise.

How high is the compensatory levy?

The compensatory levy is graduated and amounts to 155, 275, 405 or 815 euros per unfilled mandatory position, depending on how far the actual quota falls short of the prescribed 5%. The tiered amounts were most recently increased.

By when must I submit the report?

The report and the calculation of the compensatory levy must be submitted to the Employment Agency every year by March 31, for the calendar year just ended.

Can I reduce the compensatory levy?

Yes. Contracts awarded to workshops for disabled people and inclusion enterprises are credited and reduce the compensatory levy due when vacant mandatory positions cannot be filled directly.

What happens if I do not submit the report?

If the annual report is omitted, fines are possible in addition to the compensatory levy. The reporting obligation and the payment obligation therefore exist independently of each other.

Source: §§ 154, 160 SGB IX. This article is general information and does not replace legal advice in individual cases. As of: July 2026.