1 min readUpdated: 2023-12-05
The rules on the so-called inflation compensation bonus (Inflationsausgleichsprämie) were adopted back in late 2022: Companies that pay their employees a bonus in addition to the agreed wage in the period from 26 October 2022 until 31 December 2024 can do so free of tax and social security contributions up to an amount of EUR 3,000. Multiple payments are possible within this period, provided the total does not exceed EUR 3,000.
Note
Payments to employees that have already been contractually agreed (e.g. profit-sharing bonuses) cannot be reclassified as a tax-free bonus.