Between 26 October 2022 and 31 As of December 2024, employers can pay their employees up to EUR 3,000 tax-free (inflation compensation premium). As the name implies, the legislature introduced the provision of § 3 no. 11 letter c EStG to compensate for the currently significantly increased consumer prices. In October 2022, inflation measured by the Consumer Price Index (CPI) was 10.4%.
1. Conditions for the inflation compensation premium
The inflation premium is comparable to the tax-free grants for employees due to the Corona pandemic. Employers can specifically
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.