Inflation premium: up to 3,000 euros tax-free from the employer?

Why hardly anyone believes in it

Created: 09/22/2022, 15:59

By: Patricia Huber

The third relief package also includes an inflation premium.

But many employees doubt that there will be a payout.

Berlin – Due to the persistently high cost of living, the traffic light parties have put together the next relief package.

This is intended to help citizens financially and curb high inflation.

The third package includes, among other things, an energy flat rate for pensioners, students and trainees, an increase in child benefit and an electricity price brake.

The government also wants to motivate companies to pay their employees an inflation premium.

Inflation premium: 3,000 euros tax-free for employees

According to the result paper, the federal government is prepared “to exempt an amount of up to 3,000 euros from tax and social security contributions in the event of additional payments from companies to their employees.” This means that employers can pay their employees an inflation premium.

It is completely tax-free up to an amount of 3,000 euros.

Accordingly, employees would then benefit from the entire amount.

Inflation Premium Frustration: Who Can Afford It?

The coalition partners have high hopes for the regulation.

For example, the SPD member of the Bundestag, Parsa Marvi, called on companies via Twitter to make “intensive” use of the inflation premium.

Chancellor Olaf Scholz had previously expressed the hope that the inflation premium would be paid out “millions of times across Germany.”

But many employees seem to have serious doubts.

Under Marvi's tweet, some users comment that many companies are also struggling with the high gas and electricity prices.

A user writes: "You do know that employers are not authorities who do not know how to get rid of the money?"

Another also reminded of the difficult economic situation in many companies: "But it is already clear that the companies are also coming under pressure from the energy costs and cannot really pay out this money?

It is more important to keep the jobs in the first place.”

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The bosses are also stepping on the brakes on euphoria: one entrepreneur tweeted that his business alone had to cope with two million euros in additional energy costs.

That doesn't go together with an inflation premium.

"How out of touch with reality can you actually be?"