Survey - Majority of companies pay inflation compensation
72% of the companies surveyed by the Ifo economic research institute have already paid their employees a tax and duty-free inflation adjustment. A further 16 percent intend to pay this bonus in the near future.
"Small companies mainly focus on motivating their workforce, while large companies pay out more often in the event of a collective wage agreement," said Ifo expert Daria Schaller on Wednesday. Every second company cited tax advantages or its competitiveness on the labor market as reasons. Only 12 percent of the companies surveyed do not want to pay a bonus.
Since October 2022, employers have been able to give their employees up to 3,000 euros tax and duty-free as compensation for inflation. Payment is still possible until the end of this year.
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- Despite the inflation, many companies in Germany, including those in Munich, are implementing inflation compensation through tariffs or price adjustments to maintain competitiveness in the labor market.
- The Economic Research Institute's survey revealed that large companies in Berlin often provide inflation compensation premiums to their employees as part of collective wage agreements.
- Daria Schaller, an Ifo expert, stated that smaller companies in Germany primarily focus on motivating their workers by offering inflation compensation, while larger companies tend to offer this benefit more frequently.
- The survey showed that tax advantages are a common reason for employers to pay inflation compensation, as it allows them to provide their employees with an inflation compensation premium tax-free, totaling up to 3,000 euros.
- The survey results indicated that a majority of companies in Germany have either already provided or are planning to provide inflation compensation to their employees to help mitigate the effects of inflation on their wages.
Source: www.stern.de
