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Inflation premium for pensioners: For some, pensions can be improved with inflation compensation


Highlights: Inflation premium for pensioners: For some, pensions can be improved with inflation compensation. Inflation premium has no legal effect on mini-jobs. Employers still have to negotiate with your boss about paying an inflation bonus. And what if you don't absolutely need the money for Christmas? Inflation can still be paid out until the end of 2024 to pay out the inflation premium – and it doesn't have to happen in all at the same time, once dividing the inflation bonus into two.

Status: 02.12.2023, 12:58 p.m.

By: Mark Stoffers

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Pensioners cannot hope for an inflation premium of 3000 euros from the state, but some still have the opportunity to get the inflation compensation. © Panthermedia/Imago; Sascha Steinach/Imago; Collage: RUHR24

There is no official inflation premium for pensioners from the state. Nevertheless, it is possible to receive inflation compensation despite a pension.

Berlin – The fact that pensioners are left empty-handed with the inflation premium has long been a hotly debated topic in politics and the general public. After the inflation premium for pensioners in the public sector has revived the debate about inflation compensation for pensioners, it has recently become relatively quiet about the inflation compensation premium. Rather, other issues in retirement have come into the spotlight.

Due to the budget crisis, for which the traffic light in the EU is reaping a lot of spot, pension cuts were brought into play in the course of the budget chaos, on which Chancellor Scholz also commented in his speech in the Bundestag. Those cuts for pensioners, which had been brought into play by the economist Viktoria Grimm, among others, with her statement that "cuts in pensions are possible" and had been taken up by the Green politician Daniel Bayaz. The finance minister of Baden-Württemberg had also suggested in the Frankfurter Allgemeine Sonntagszeitung that some pensions were "not set in stone".

Inflation premium for pensioners: For some, the pension can be supplemented with inflation compensation

And even if the pension is to increase significantly in the future, a tax-free inflation compensation of up to 3000 euros would perhaps be more than just a small consolation in the face of these possible cuts. Finally, employees had the option to benefit from the inflation compensation bonus. What few people know, however, is that pensioners also have the chance to supplement their pension with an additional inflation premium.

However, this only applies to a certain group of retirees. Namely, only for pensioners who have a mini-job. In addition, the employer still has to agree to pay the inflation premium, which he is not legally obliged to do. Nevertheless, a payment of an inflation premium for pensioners who are employed in a mini-job relationship could be worthwhile for companies.

Even though mini-jobbers are theoretically entitled to a Christmas bonus, the reality is often different. This circumstance results from the fact that the Christmas bonus is a difficult calculation task for employers. After all, the Christmas bonus can lead to the fact that the mini-job can turn into a midi job subject to social security contributions. As a result, not only the employee, but also the employer may have to pay additional tax arrears.

Inflation compensation for pensioners: Inflation premium has no legal effect on mini-jobs

A solution to this dilemma is the inflation premium for pensioners who have a mini-job in a company. According to the Bavarian Income Tax Assistance (Lohi), the premium is paid in addition to earnings, but does not count against the earnings limit for marginally employed workers. "This means that, from a social security point of view, it has no impact on the employment relationship," Lohi continues.

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In the case of several mini-jobs, the full 3000 euros of the inflation premium could even be drawn independently of each other from each employment relationship. And according to focus online, this also applies to pensioners, as the Lohi confirms on their request. For pensioners, this means that the inflation compensation premium is not offset against taxable income. This means that if you don't have to pay taxes without the inflation premium, you won't pay any with the inflation compensation.

Inflation bonus for pensioners instead of Christmas bonus: Inflation compensation can still be paid out until 2024

And what's more, if you don't absolutely need the money for Christmas time, you still have a year to negotiate with your boss about paying an inflation bonus. Employers still have until the end of 2024 to pay out the inflation premium – and it doesn't have to happen in full all at once. Finally, companies have the option of dividing the inflation premium into several installments. Employers also have the advantage that they do not incur any further wage costs due to inflation compensation, as the inflation compensation premium remains tax-free.

While the lack of an inflation premium for pensioners in combination with the inflation compensation for pensioners is an "unspeakable signal" and the average pension is "a shameful balance" in many eyes, at least the pension insurance speaks plainly with regard to possible cuts for pensioners. Regardless of these proposed pension cuts, the fact that at least retirees in a mini-job have the opportunity to receive an inflation premium could provide some security for some in this uncertain present.

Source: merkur

All news articles on 2023-12-02

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