The Bundestag decided on Friday that employers can pay their employees up to 3,000 euros in tax-free bonuses in the coming years. Something similar already happened during the Corona crisis. However, it is unclear how many employers will make use of the opportunity and actually pay out bonuses.
Employers can pay their employees up to 3,000 euros in tax-free premiums to cushion high inflation in the coming years. The Bundestag decided on Friday that such bonuses will not be subject to income tax until the end of 2024. However, it is unclear how many employers will make use of the opportunity and actually pay out bonuses. Employer President Rainer Dulger had recently emphasized that not all companies could afford the one-off payment.
Even during the Corona crisis there was the possibility of a tax-free premium. However, it is not known how many employers paid them and in what amount. The prerequisite for tax exemption is that the money is paid in addition to wages. In addition, the employer must make it clear that this is a lump sum in connection with the price increases. In the case of social benefit recipients, the premium should not be taken into account as income.
