Special payment - Inflation adjustment bonus for 26 million employees
Approximately 26 million employees in Germany received inflation adjustment bonuses totaling over 52 billion Euro between 2022 and 2024, according to a study by the Institute for Macroeconomics and Business Cycle Research (IMK) of the Böckler Foundation. This figure includes both socially insured employees and civil servants.
The numbers are based on a representative survey of the IMK. Roughly 23.9 million, or about 69%, of the socially insured employees in Germany received one or more inflation adjustment bonuses. On average, they received 1,953 Euro. The amount could still increase by year-end, as more payments may still be made. Nearly two million civil servants received 3,000 Euro each.
The inflation adjustment bonus helped alleviate concerns and financial impacts of high inflation for many households, according to study authors Jan Behringer and Sebastian Dullien. "Inflation has been stabilized to some extent." According to the survey, around two-thirds of employees considered the one-time payment as a significant relief during times of high prices. Employees with bonuses reportedly consumed less frequently than those who did not receive any, according to the researchers. The positive effect was particularly noticeable in travel and vacation, leisure activities, entertainment and culture, restaurant visits, and housing maintenance.
To mitigate the effects of inflation, the German government granted companies the option to pay their employees inflation adjustment bonuses of up to 3,000 Euro through the end of 2024. No taxes or duties apply to these payments. The IMK estimates the resulting revenue losses at around 40 billion Euro.
- In the battle against inflation, the German government allowed employers to provide an Inflation adjustment premium of up to 3,000 Euro to their employees until 2024.
- The majority of socially insured employees in Düsseldorf, as well as across Germany, benefited from this special payment, with an average of 1,953 Euro each.
- As a result of this premium, many employees reported a significant improvement in their economic situation, enabling them to spend less frequently on non-essential items such as travel, leisure activities, and dining out.
- Despite the high inflation rates, the Inflation adjustment premium served as a crucial buffer for employees, helping them navigate the challenging economic situation and maintain their standard of living, particularly in relation to housing maintenance and related prices.
