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Inflation compensation bonus for many collective bargaining employees

2024-03-14T12:25:13.796Z

Highlights: The federal government made the special payment of up to 3,000 euros tax and duty-free in order to ease the burden of the energy crisis. The average sum per person so far is 2,761 euros. The lowest special payment was in the construction industry with an average of 1,104 euros and in agriculture, forestry and fishing with 1,689 euros. Employees in the areas of public administration, defense, social security, education and instruction and water supply, sewage and waste disposal received the most.



As of: March 14, 2024, 12:31 p.m

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Many collective bargaining employees have already received a special payment of up to 3,000 euros, tax-free and duty-free.

© Monika Skolimowska/dpa

With the tax- and duty-free special payment, the federal government wanted to relieve the burden on employees during the energy crisis.

Many employees benefit from this, but not equally in all sectors.

Wiesbaden - The vast majority of collective bargaining employees in Germany benefit from a special payment to cushion the inflation shock.

According to the Federal Statistical Office, more than three quarters (77.9 percent) have received the inflation compensation bonus since October 2022 or will receive the tax- and duty-free one-off payment according to the collective agreement until the end of 2024.

The average sum per person so far is 2,761 euros.

It is not clear from the data how many of the employers without a collective agreement pay the premium and how much.

“The data on the inflation compensation bonus show that employees in companies with a collective agreement have a good chance of receiving a special payment in addition to their basic pay - similar to what is the case with holiday and Christmas bonuses,” said Malte Lübker, a pay expert from the fields of economics and social sciences Institute (WSI) of the trade union Hans Böckler Foundation.

However, around half of the employees now work in companies that are bound to an area or company collective agreement.

However, many companies voluntarily follow industry collective agreements.

Inflation shock somewhat mitigated

The federal government made the special payment of up to 3,000 euros tax and duty-free in order to ease the burden of the energy crisis and the temporarily sharp rise in inflation for employees.

According to data that has already been published, the measure from the third relief package contributed to collectively agreed earnings including special payments increasing by an average of 3.7 percent last year compared to the previous year.

This was the highest increase since statistics were introduced in 2010. However, this was offset by annual average inflation of 5.9 percent.

Despite significant wage increases, 2023 was the third year in a row with significant losses in purchasing power for collective bargaining employees.

“The inflation compensation bonuses helped to somewhat cushion the inflation shock for employees,” said Lübker.

“Even if inflation rates are slowly declining, the cost of living remains high.” Lübker therefore advocated that the one-off payments in the current collective bargaining rounds be transferred to regular wages if this has not yet been agreed.

Highest special payment in the public service

There are clear differences between individual sectors when it comes to the employees who receive the bonus.

The lowest special payment was in the construction industry with an average of 1,104 euros and in agriculture, forestry and fishing with 1,689 euros.

Employees in the areas of public administration, defense, social security (3,000 euros), education and instruction (2,999 euros), art, entertainment and recreation (2,987 euros) and water supply, sewage and waste disposal (2,943 euros) received the most.

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Employees in industry and in the areas of water supply, sewage and waste disposal benefit most from the special payment.

There, 96.1 or 96 percent of collective bargaining employees are entitled to an inflation compensation bonus.

There are significantly fewer in the hospitality industry (6.3 percent) or in retail (24.4 percent).

Depending on the collective agreement, the bonuses can be paid out as a total amount or staggered in partial amounts and can be paid out until the end of the year.

The collective bargaining partners can therefore still agree on special payments.

The statisticians' figures are therefore preliminary.

dpa

Source: merkur

All news articles on 2024-03-14

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