it can be read and heard everywhere in the press: with the announcement of the law on 25.10.2022, employers can now pay up to EUR 3,000 inflation compensation premium to their employees free of wage tax and social security contributions.
We are pleased to inform you about the essential framework conditions:
- The premium can be paid in different amounts in the period up to 31.12.2024, also split monthly, for example.
- The premium must be paid in addition to the contractually agreed wage. In other words, a payment instead of the agreed Christmas or vacation bonus is not permitted.
- The payment must be related to the current price increases. We therefore recommend either including the reference “inflation premium due to price increase” in the purpose of the payment or concluding an individual contractual agreement with the employees.
- Payment is permitted to all employees, including those with marginal employment, for example.
- In principle, the premium does not have to be paid out to all employees in the same amount. However, the usual principles of equal treatment must be observed.
- The premium may also be paid as a non-cash remuneration in the form of vouchers or goods.
- Each employee may receive the amount for each employment relationship.
If you require further details, please contact us – we will be pleased to assist you!
