Tax-free inflation premium: up to 3000 euros extra - what employees should know now
Created: 11/29/2022, 10:28 am
By: Lisa Mayerhofer
Employers are allowed to pay their employees a tax-free bonus of up to 3,000 euros to compensate for inflation.
An overview shows what you should know about the bonus.
Berlin – 3,000 euros – this is how much money employers are allowed to pay their employees as an inflation premium, free of taxes and duties.
The permissible special payment is intended to relieve employees who are struggling with sharply increased energy and food prices.
Chancellor Olaf Scholz (SPD) had asked the country's employers to pay their employees the bonus, which should remain tax and duty-free.
But how does the payment of the inflation premium work and what do employees have to consider?
An overview of the most important questions and answers.
Do all employees in Germany receive an inflation premium?
Unfortunately not - the payment is entirely at the discretion of the employer.
Employer President Rainer Dulger had warned against too high expectations of the bonus.
"Many companies would certainly allow their employees a one-off payment, no matter what the amount, but they can't because the massive increase in energy costs is taking their breath away," he said in an interview with the
editorial network Germany
.
Are there companies that have already announced the bonus for their employees?
Some companies such as the media group Bertelsmann, the car rental company Sixt, the drugstore chain Rossmann and the fan manufacturer EBM Papst pay their employees an inflation premium.
Overall, employers have so far been reluctant to pay out the bonus.
According to a
Handelsblatt
survey, only twelve of the 40 Dax companies pay an inflation bonus, such as Deutsche Bank and Airbus, each with 1,500 euros.
How and by when can I receive the bonus if my employer has announced a payment?
The payment can be made from the day after the law was promulgated until December 31, 2024 - also in installments.
Those who didn't get anything this year can still hope for the next two years.
Employers can pay out with a simple note on the payslip that the premium is linked to inflation.
There are no “special requirements” for the context.
A received inflation premium is not to be stated in the income tax return.
It therefore always remains tax-free and does not affect the tax rate.
However, the prerequisite for the tax exemption is that the premium is actually paid as support to mitigate the financial consequences of inflation.
The wage type must be declared accordingly clearly in the payslip.
The inflation bonus must not only be paid to individual employees.
(Iconic image) © Christin Klose/dpa-tmn
Do employers have to pay the inflation premium to all employees – including mini-jobbers?
The inflation bonus must not only be paid to individual employees, but must go to everyone, if at all.
The duration of the employment relationship also plays no role in the bonus.
"It is irrelevant whether the employee is employed full-time or part-time or whether it is a marginal job," says Daniela Karbe-Gessler from the Taxpayers' Association.
Mini-jobbers are also entitled to the bonus if the company decides to pay it out.
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Because within a company, the principle of equal treatment applies, says Michael Henn, specialist lawyer for labor law.
In principle, however, it is possible to pay out different sums.
"But the employer needs factual, comprehensible reasons for different distributions." If there is a works council in the company, it has a right of co-determination.
The distribution mode is then negotiated and regulated there.
What about employees on maternity leave?
The bonus is not linked to an active employment relationship.
This means that as soon as a company pays the inflation premium, employees on parental leave or on sick leave or sick pay are also entitled to it.
Is the inflation premium counted as income for Hartz IV top-ups?
no
The federal government has stipulated that the inflation premium is not counted as an income-related social benefit.
This means that Hartz IV top-ups do not count the premium as income.
Of course, the prerequisite here is that it is made clear that the premium is being paid out because of inflation.
Can employers pay out the inflation premium as a Christmas bonus?
The answer here is also no.
The bonus applies in addition to the contractually agreed salary payments.
"So if I'm contractually entitled to a Christmas bonus, the employer can't pay me an inflation premium instead," explains Michael Fuhlrott, a specialist lawyer for labor law, to the
Frankfurter Rundschau
.
It is forbidden to transfer part of the salary as a bonus, as this would avoid social security expenses and taxes.
Does the inflation premium play a role in salary increases?
A conflict between trade unions and employers is becoming apparent here – some see it as an additional bonus, others as a substitute for a salary increase.
In any case, this is the case with the current collective bargaining in the metal and electrical industry.
In the nationwide collective bargaining dispute, IG Metall is demanding eight percent more wages for a contract term of twelve months.
Employers offered a one-off payment of 3,000 euros net for a period of 30 months, as well as an unspecified increase in the wage tables.
So in the end: the tax-free inflation premium for employers.
The union rejects this offer, preferring long-term wage increases.
The inflation premium is already a factor when it comes to the collective bargaining agreement for the roofing trade: In addition to wage increases, the agreement stipulates that employers will pay their employees an inflation premium of 950 euros to compensate for the sharp rise in living costs, which will be paid in two equal installments in spring 2023 and 2024.
(lma/dpa/AFP)
