Last chance: up to 3,000 euros tax -free for employees by the end of the year!

Last chance: up to 3,000 euros tax -free for employees by the end of the year!

In the fight against the high living costs, the Federal Government offers the opportunity to receive an inflation compensation premium of up to 3,000 euros by December 31, 2024. This tax -free special payment, which was introduced as part of the third relief package, aims to financially relieve employees in Germany. According to bundes- government.de , more than three quarters of the tariff employees have already benefited from this premium or will be received by the end of 2024.

Details on the premium and payment

The inflation compensation premium can be paid out in a sum or in partial amounts and must be granted in addition to regular wages. Employers are not obliged to pay this premium, but can take advantage of their tax and tax-free nature to support employees. The income tax relief associations, such as the VLH , to actively address this topic in conversation with the employers if no payment has yet been made. Newly hired employees are also entitled to the premium, provided that it is shown by its new employer as inflation compensation.

It is important that the premium must be clearly marked as such on the salary statement in order to guarantee the tax advantages. If you have already received a bonus and still remain below 3,000 euros in total, you can receive further payments by the end of December 2024. This is particularly relevant for employees who claimed partial amounts of inflation compensation premium in 2022 or 2023. Every euro counts, especially in times of rising prices.