There are further reliefs for employees: retrospectively to the beginning of 2022, the basic allowance that everyone who has paid too much wage tax will receive in July will increase. According to calculations, around 69 euros more per year are left for singles.
Anyone who has already received their July salary should be happy to see that there is suddenly a little more money in the account. But not the own company has made a mistake here. The reason for this is further relief for employees.
For example, the increase in the basic allowance will increase retroactively to January 1, 2022 from EUR 9,984 to EUR 10,347. That means: If you earn less than 10,347 euros a year, you don’t have to pay any taxes. For everyone else, the income remains tax-free up to this limit. Every euro earned in addition is then taxed. And because the basic allowance is increased, the net salary is also slightly higher. The difference is particularly clear in July, because then employees will be paid the overpaid wage tax retrospectively from January 2022.
According to calculations by the German Economic Institute (IW), around 69 euros more per year remain for singles. In the case of a single-earner family with two children, the increase in the basic allowance brings around 138 euros more per year. And there is more good news for workers. For them, the lump sum, up to which the job costs are tax-free, also increases retrospectively from January 2022 by 200 euros to 1200 euros. All employees who have less than 1200 euros in income-related expenses per year benefit.
For example, with a gross monthly income of 4000 euros, this will save you around 67 euros in tax per year. However, this only becomes noticeable in the tax return for the year 2022 and not directly on the payslip. However, there is no advantage if you sell more than 1200 euros in commuter allowances just for your commute to work.
