Berlin’s New Training Levy Annoys Startups

A new law passed by the Berlin State Parliament, introduces a mandatory fund for companies with at least ten employees whose training quotas fall below the national average of 4.6%. The goal is to fund additional vocational training places and preparatory programs for young people. The levy, expected to generate €75 million annually, won’t take effect until 2028, but companies must submit relevant data in 2027.

Critics argue the measure risks sending the wrong message to Berlin’s entrepreneurial ecosystem. “This sends a false signal to the Berlin economy,” warned Dehoga Berlin on LinkedIn, emphasizing the additional burden on local businesses.

The levy was introduced after the city failed to meet its target of creating 2,000 new training places by the end of 2025. Only 1,300 additional contracts were secured under the Ausbildung 2.0 initiative, leaving policymakers scrambling for alternatives.

Startups, already navigating tight margins and rapid scaling challenges, may find the levy particularly difficult to absorb.

The policy also punishes companies that offer training but struggle to attract qualified applicants. “The government’s training levy is an insult to those working hard to place young people in training,” stated Sebastian Stietzel, president of IHK Berlin.

Alexander Schirp, managing director of Unternehmensverbände Berlin-Brandenburg, called the policy “self-sabotage,” arguing it penalizes businesses that are already investing in vocational training.

Gerrit Buchhorn, managing director of Dehoga Berlin, suggested policymakers should have first evaluated the results of existing efforts before imposing new measures. Nils Busch-Petersen, CEO of the Berlin-Brandenburg Retail Association, echoed this sentiment: “Businesses deliver, yet politics punishes them.”

As Berlin’s tech sector continues to grow, the levy’s impact on innovation and job creation remains uncertain. Will this policy foster more opportunities or stifle the city’s vibrant startup culture?