The German Civil Service Federation (dbb) has called for all public sector employees to receive the planned tax-free 1000-euro premium, arguing that the state employer has a leadership responsibility in implementing the relief measure announced by the governing coalition.
On Monday, the black-red coalition government announced further relief measures in response to soaring fuel prices caused by the Iran conflict. Among the measures, the CDU, CSU, and SPD parties agreed to allow employers to pay their employees a tax-free relief premium of 1000 euros in 2026.
However, disagreement emerged within the coalition regarding whether the federal government should extend this benefit to its own workforce. Union parliamentary group leader Jens Spahn (CDU) stated on Tuesday in Berlin that he sees no basis for the federal government to pay such a premium to its employees at present. Citing budgetary constraints, Spahn noted that the government faces similar financial challenges as many businesses in the current situation, leaving no room for such expenditures.
Speaking to the newspaper Bild on Wednesday, dbb chairman Volker Geyer stated that if the federal government expects private companies to provide this relief, the state must demonstrate leadership. The union represents civil servants across federal, state, and local government levels.
Geyer emphasized that federal, state, and municipal governments must swiftly introduce the crisis bonus as a genuine additional benefit that is not offset against collective bargaining agreements or salary increases. The demand comes as Germany grapples with economic pressures stemming from the Iran conflict, which has driven fuel prices significantly higher.
SPD parliamentary business manager Dirk Wiese offered a contrasting view, stating that he would find it appropriate for the state to pay the premium as well. However, Wiese advocated for a differentiated approach that prioritizes civil servants in lower pay grades, such as federal police officers, rather than extending it to cabinet members or judges.
Acknowledging the legal complexity of such selective implementation, Wiese warned against hastily dismissing the idea and ruling out any bonus for civil servants entirely. He stressed the importance of focusing on lower-income public sector workers while avoiding debates driven by resentment toward higher-paid officials receiving the benefit.
The debate over the tax-free relief premium has also raised concerns among local government associations about implementation difficulties and financial burdens. Kay Ruge, managing director of the German Association of Towns and Counties, told newspapers of the Funke Media Group (Wednesday editions) that the federal government has presented a relief measure without consulting employers, who now face corresponding expectations from their employees.
For counties as employers, this represents an additional financial burden during a time of historic municipal deficits totaling 30 billion euros, Ruge explained. With approximately 2.6 million employees on collective agreements working for counties, cities, and municipalities, the total additional cost would amount to 2.6 billion euros for local governments alone. If the measure is extended to civil servants, the cost would increase by several billion euros more.
Ruge argued that given the precarious financial situation at the municipal level, the federal government must address the question of whether it is prepared to compensate for these additional costs. The association represents local governments that are already struggling with significant budget shortfalls.
The coalition committee decided to temporarily reduce the energy tax on petrol and diesel by 17 cents per liter for two months in response to sharply increased fuel prices resulting from the Iran war. In addition to this fuel tax cut, employers received the option to pay employees a tax-free relief premium of 1000 euros.
While private sector employers have the flexibility to decide whether to grant this bonus, the question of whether public sector employers at federal, state, and local levels will follow suit remains contentious.
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