Employers can give their employees a so-called inflation compensation premium of 3,000 euros tax-free until the end of 2024. This is what the federal government’s third relief package provides for. Companies can transfer the tax and social security-free special payment in addition to their wages. However, employees are not entitled to the EUR 3,000 bonus. Employers decide voluntarily whether and how much is paid for the inflation compensation premium.

With their waiver of social security contributions, politicians are only paving the way for this and hope that the special payment will be implemented as nationwide as possible in Germany. Restrictions on the employment relationship are not yet known – the bonus is therefore also possible for part-time or mini-jobbers.

If you have further questions about the inflation premium, please contact the experts at the Altehoefer law firm for international tax advice.