Majority of German companies have paid an inflation premium
Almost three quarters of German companies have already paid their employees a tax and duty-free inflation adjustment. This was stated by 72 percent of HR managers, according to a survey conducted by the Munich-based Ifo Institute on Wednesday. A further 16 percent plan to pay out this bonus in the near future.
"The main reason for paying out this bonus is to increase employee motivation," said Ifo expert Daria Schaller. For 27 percent, the payment is also part of a collective wage agreement. Only twelve percent of those surveyed did not want to pay out a bonus. Since October 26, 2022, the inflation compensation bonus has allowed employers to grant their employees an amount of up to 3,000 euros free of tax and duties. This was established by the German government as part of the third relief package in light of increased energy prices.
The willingness to pay an inflation compensation bonus increases with the size of the company: 93% of companies with 500 or more employees pay it, and 84% of smaller companies. At 93% (implemented or planned), industrial companies are more likely to pay than companies in the retail sector (86%) and service providers (85%).
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The Company's HR managers attributed the motivation for paying the inflation premium to boosting employee morale. In the survey, a majority of larger companies in Germany, including industrial ones, had either paid or planned to pay this bonus.
Source: www.ntv.de