Germany: payment bonus to protect from inflation and embark on wage moderation

On 15 September, the German government and social partners confirmed the possibility for employers to pay their employees a one-off tax-free bonus of up to €3,000. Both government and employers are hoping that trade unions will use this scheme to promote wage moderation, particularly during the collective bargaining negotiations that are starting in the two major industrial sectors (metal and chemicals).

By . Published on 21 September 2022 à 11h30 - Update on 21 September 2022 à 11h30

Up to €3,000 free of tax and social contributions.  Can the new cost-of-living protection bonus, which has been conceived of as part of a ‘concerted action’ launched by the German government and social partners, really lead to greater wage moderation? This is one of the central questions accompanying the government’s latest proposal to companies that they pay a tax and social security contribution-free ‘inflation bonus’.…

Need more info ?

Contact

mind's on-demand study service

  • This field is for validation purposes and should be left unchanged.