Companies will get more time to pay out the €1,000 relief premium for employees approved by the coalition. The premium period will be extended until June 30, 2027, according to the relevant draft law, which was available to the news agency AFP on Tuesday. It is to be introduced to the Federal Cabinet on Wednesday. Union parliamentary manager Steffen Bilger (CDU) had previously announced that employers should be given "more flexibility."
According to the draft law, the relief premium until mid-2027 will result in tax revenue losses of €2.8 billion for the state. Of this, €1.1 billion falls to the federal government, meaning the remaining taxes will be lost to states and municipalities. The Bundestag and Bundesrat must still approve the proposal.
Originally, the tobacco tax was to be increased to counter-finance the relief premium. However, following the extension into next year, the tobacco tax increase will likely not be sufficient, according to Bilger. "This will need to be addressed in next year's budget," the CDU member said.
Union and SPD recently decided on the relief premium in the coalition committee against the backdrop of high energy prices following the Iran war. It met with criticism from many companies who, given the current economic situation, do not see themselves in a position to pay the tax-free premium. Chancellor Friedrich Merz (CDU) subsequently brought an extension into the coming year into play.
SPD parliamentary manager Dirk Wiese referred to experiences from the Corona period. "Back during Corona times, almost 85 percent of employees covered by a collective agreement benefited from this premium," he said. At the same time, he acknowledged that many companies are currently facing financial difficulties. "The financial situation is not the same as it was a few years ago."
According to a survey by the retail association HDE, 83 percent of the 436 companies surveyed see the payment of such relief as a matter for the state. "It cannot be that the state promises citizens relief and then asks companies to pay this on top of normal wages from their budgets," explained HDE President Alexander von Preen.
However, criticism also came from within the CDU. Saxony-Anhalt's Minister President Sven Schulze (CDU) told the broadcaster Phoenix that he assumed hardly any company would be able to "implement" the premium. It is about relieving companies, not burdening them further. "Therefore, I consider this regulation unsuitable."
The employer association BDA had also at least demanded an extension of the premium's timeframe. Employers are also bothered by the fact that the premium must be paid "in addition to owed wages" and "cannot be offset against other benefits from employers."
The retail association also advocates "that employers could pay out special payments such as vacation pay and/or Christmas bonuses as a social contribution and levy-free relief premium." Both employers and employees "would benefit: employers through lower labor costs and employees through higher net payments," the HDE explained.
The rise in energy prices is putting pressure on both consumers and companies. The German Chamber of Industry and Commerce (DIHK) spoke on Tuesday of a "noticeable chain reaction" in the German economy. Based on a flash survey of 2,400 companies, it stated that 83 percent of firms reported negative impacts. According to the survey, they most frequently cited increased freight and transport costs, followed by higher energy payments and rising raw material and commodity prices.
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