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Special payment: Inflation compensation premium for 26 million employees

Employers have paid out more than 52 billion euros. An IMK study shows that inflation compensation has helped to reduce the worries of many people.

Almost 26 million employees in Germany received inflation compensation premiums totaling more than 52 billion euros between 2022 and 2024. This is the result of a study by the Institute for Macroeconomics and Business Cycle Research (IMK) of the Böckler Foundation. This includes both employees subject to social insurance contributions and civil servants.

The figures are based on a representative survey by the IMK. Around 23.9 million, or around 69 percent, of employees subject to social insurance contributions in Germany received one or more inflation compensation bonuses. On average, they were paid a total of 1,953 euros. The value may increase by the end of the year because further payments could be made. Almost two million civil servants received 3,000 euros each.

The inflation compensation premium has been able to alleviate the worries and financial impact of high inflation for many households, said study authors Jan Behringer and Sebastian Dullien. “This has stabilized the mood to buy.” Around two-thirds of employees found the one-off payment to be a medium to large relief in times of high prices, as the survey shows. Employees who received a premium were noticeably less likely to want to limit their consumption than those who did not receive one. According to the researchers, the positive effect was particularly strong for travel and vacations, leisure, entertainment and culture, restaurant visits and apartment maintenance.

In order to cushion the effects of inflation, the federal government gave companies the opportunity in 2022 to pay their employees an inflation compensation premium of a maximum of 3,000 euros until the end of 2024. No taxes or duties are due on this. The IMK estimates the associated loss of revenue at around 40 billion euros.

Source: Stern

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