Even during the pandemic, some employers paid their employees a tax-free bonus. This should also be possible again to cushion the high inflation. Employees can hope for up to 3,000 euros by the end of 2024. However, it is unclear which companies can afford it.
Employers should be given the opportunity to pay their employees tax-free bonuses of up to 3,000 euros by the end of 2024 to cushion high inflation. The premiums could be tax-deductible until December 31, 2024, reported the “Spiegel”.
“With the extended period, we are responding to a suggestion from employers and trade unions: the German economy needs flexibility to deal with the crisis,” Finance Minister Christian Lindner told the magazine. The cabinet should deal with the issue in the coming week, after which it will go to the Bundestag.
However, it is unclear how many employers make use of the option and pay out bonuses. Employer President Rainer Dulger had already emphasized after talks in the Chancellery that not all companies could afford the one-off payment.
Even during the Corona crisis, there was the possibility of a tax-free premium, but it is not known how many employers paid it 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.
