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Tax-free inflation bonus can be granted until the end of 2024 - up to an additional 3,000 euros from the employer

2024-02-04T13:10:56.105Z

Highlights: Tax-free inflation bonus can be granted until the end of 2024 - up to an additional 3,000 euros from the employer. As of: February 4, 2024, 2:00 p.m By: Anne Hund CommentsPressSplit In many companies, employees have already been able to look forward to a bonus to compensate for inflation. Employers are allowed to pay their employees up to 3,.000 euros tax- and duty-free as an inflation bonus during the benefit period - once or in several installments.



As of: February 4, 2024, 2:00 p.m

By: Anne Hund

Comments

Press

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In many companies, employees have already been able to look forward to a bonus to compensate for inflation.

Employers can pay out up to 3,000 euros tax-free by the end of the year.

Employers can grant their employees a tax-free inflation compensation bonus, or inflation bonus for short, until the end of 2024.

This is a voluntary service provided by the employer.

Employers are allowed to pay their employees up to 3,000 euros tax- and duty-free as an inflation bonus during the benefit period - once or in several installments.

One condition, however, is that the money is paid in addition to the wages that are already owed.

Tax-free inflation compensation bonus of up to 3,000 euros

“Numerous companies have so far granted partial amounts and have not yet exhausted the maximum amount of 3,000 euros per employee by the end of 2024,” the 

Bavarian Income Tax Assistance (Lohi)

 announced at the end of November.

Employers can offer employees a tax-free inflation bonus until the end of 2024.

(Symbolic image) © Pond5 Images/Imago

Who can receive a tax-free inflation bonus?

Regardless of the type of employment, only employees can receive a tax-free inflation bonus for tax purposes, as the Federal Ministry of Finance explains on its website.

The tax exemption also applies to several (partial) benefits that the employer grants the employee during the preferential period (i.e. until the end of 2024) up to a total of 3,000 euros, it continues.

A payment in monthly installments, for example, is also possible from a tax perspective.

Only additional services are subsidized

On the other hand, the following applies: The tax exemption does not apply to permanent wage increases “since the purpose of the regulation is to promote special benefits”.

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Inflation bonus 2024: What applies to a mini-job?

Mini-jobbers can also benefit from the bonus if necessary.

Here, as

Lohi Bayern

explained in its announcement: “The inflation compensation bonus is paid out in addition to earnings, but is not added to the annual salary in relation to the earnings limit for marginally employed people.” If there are several mini-jobs, those affected could “get the full 3,000 euros from each employment relationship “receive bonuses independently of each other”.

Source: merkur

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