Since October 2022, employers have been able to transfer an inflation bonus to employees without a deduction. How to get the money and what to look out for.
The payment of the inflation bonus of a maximum of EUR 3,000 is based on a voluntary decision by the employer. It is intended to mitigate the consequences of inflation for employees and is paid alongside the usual wages.
How high the payout is and whether it is a one-time payment or an installment is up to the employer. It is also possible for the employer to hand over the bonus in the form of benefits in kind.
The regulation is valid until December 2024
Until December 2024, employees will be able to receive tax-free bonus payments. The employer only has to make it clear that the payment is the inflation compensation premium.
In the case of a bank transfer, the information under the purpose is sufficient. “Employees in the tax sense” are entitled to receive a bonus, as the Federal Ministry of Finance puts it.
This refers to all employees who are employed in both the private and public sectors and who receive wages. So it doesn’t matter whether you’re a student, civil servant, mini-jobber or CEO, as long as you meet this criterion. Also, workers are allowed to receive two or more bonus payments if they are employed in multiple jobs.
Bonus payments to all or no one
The principle of equal treatment dictates that employers are not allowed to give bonuses to individual employees while others get nothing. So it doesn’t matter whether you’ve been with us for 10 years or just recently. The employer can only decide on the amount of the payments, as long as he can justify them objectively.
If you are in an inactive employment relationship with your employer, for example due to parental leave or illness, he is still obliged to pay you the bonus as soon as he pays it out.
In addition, the employer cannot spend contractually guaranteed Christmas or vacation pay as a compensatory bonus. This procedure is illegal and is interpreted as tax avoidance.
