Survey: Majority of companies pay inflation compensation

Survey: Majority of companies pay inflation compensation

Up to 3,000 euros tax- and duty-free: Many smaller and larger companies pay their employees an inflation compensation bonus. The motivation varies.

72 percent of the companies surveyed by the Ifo economic research institute have already paid their employees tax- and duty-free inflation compensation. Another 16 percent want to pay out this bonus soon.

“Small companies primarily focus on the motivation of their workforce, while large companies pay more often when a collective agreement is concluded,” said Ifo specialist 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 premium.

Since October 2022, employers have been able to give their employees up to 3,000 euros tax-free and duty-free to compensate for inflation. The payment is still possible until the end of this year.

Source: Stern

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