300 euros for pensioners: Extra energy flat rate will come in 2022

Created: 05/10/2022, 14:52

By: Lisa Mayerhofer

When the energy flat rate was paid out in September, pensioners got nothing - although they are just as affected by the high energy prices.

Now the government is following suit.

Berlin – The federal cabinet is working on the third relief package – and is now also trying to get pensioners.

These were left empty-handed when the energy flat-rate was distributed as part of the second relief package, which led to harsh criticism from social associations, among others.

Now the cabinet has also decided on a one-time energy allowance of 300 euros for pensioners.

Energy flat rate for pensioners coming in December

The lump sum should be paid out on December 15, 2022, said Social Affairs Minister Hubertus Heil (SPD) after the cabinet meeting on Wednesday.

In difficult times, when prices for energy and food have risen sharply, the welfare state is “on the side of the people”.

It was also decided to raise the upper limit for so-called midi jobs from 1,600 to 2,000 euros.

The EUR 300 energy flat rate for people who draw a pension is part of the third relief package announced by the traffic light government at the beginning of December.

According to the Federal Ministry of Social Affairs, everyone who is entitled to a statutory old-age, reduced earning capacity or survivor’s pension or to pension payments under the Civil Servants Act or the Soldiers’ Pension Act as of December 1, 2022 will receive the energy lump sum.

Entitlement therefore only exists if you are resident in Germany.

According to the ministry, the payment is made automatically, applications are not necessary.

Our free pension newsletter provides you with all relevant news from the economy on a regular basis.

Here

Energy price flat rate for pensioners is subject to tax

The energy price flat rate is not taken into account for income-related social benefits and is not subject to the obligation to contribute to social security, the ministry emphasized.

However, it should be subject to tax.

The government had estimated the cost of the lump sum at a total of around six billion euros when it was announced.

With the increase in the upper earnings limit for so-called midi jobs, employees with low wages would be relieved of an additional 1.3 billion euros a year in social security contributions, the ministry said.

At the same time, “the incentives to work beyond a mini-job would be strengthened”.

Unlike mini jobs, midi jobs are not exempt from social security contributions.

However, staggered reduced rates apply.

Employees only have to pay the full social security contributions from the upper limit of currently 1,600 and in the future 2,000 euros.