Allegemeine News

Lorem ipsum ..

2022-12-25 07:55:28 Inflation Relief Pay to combat increased consumer prices

Inflation Relief Pay to combat increased consumer prices

Category: General | Lesedauer: 1 Minuten

Since Oct. 26, 2022, until Dec. 31, 2024, employers in Germany are allowed to grant employees up to 3,000 € inflation relief pay, a social security and withholding tax exempt compensation.

© photoschmidt, Adobe Stock

Inflation Relief Pay to combat increased consumer prices

Kategorie: General | Lesedauer: 1 Minuten

Since Oct. 26, 2022, until Dec. 31, 2024, employers in Germany are allowed to grant employees up to 3,000 € inflation relief pay, a social security and withholding tax exempt compensation.

© photoschmidt, Adobe Stock

It is fully employer financed and provided at will and discretion of management. If paid, it must be granted additionally to any regularly agreed compensation, and may not substitute the latter to qualify as exempt. Cash and benefits in kind are likewise qualified. The beneficial tax and social security treatment is cut-off above 3,000 € (threshold). Any inflation relief pay must be specially marked on the payslip as such. It can be paid in monthly installments to drive employee retention. Let me know if your company wants to extend this benefit by adding a column in the payroll prep spreadsheet specially headlined with “INFLATION PAY”, citing the amount the employees shall each receive.


by Patrick Rizzo

published: 25.12.2022

Ähnliche Artikel

Engage us
Get a Quote