As the size of the company increases, so does the willingness to pay an inflation compensation bonus. The figure is 93% for companies with 500 or more employees and 84% for smaller companies. At 93% (completed or planned), more companies in manufacturing paid the bonus than companies in trade (86%) or among service providers (85%).
A full 71% of respondents see the bonus as an additional way of motivating employees; a good half (56%) are consciously taking advantage of the tax benefit; 49% cite their competitiveness on the labor market as the reason. “Small companies see the bonus primarily as a way to motivate their employees, while large companies pay it out more often in the event of a collective wage agreement,” Schaller says.
Since October 26, 2022, employers have been permitted to award their employees a tax-free sum of up to EUR 3,000 in the form of an inflation compensation bonus. This was laid down by law as part of the German government’s third relief package in response to the rise in energy prices. This is a voluntary payment. The bonus can be paid out until the end of 2024. In addition, some collective agreements define the bonus as generally binding.
