The crisis bonus of €1.000 is to be structured similarly to the previous inflation adjustment bonus. (Photo: © alfexe/123RF.com)
Read aloud:
May 2026
Employers should be able to financially support their employees until the end of 2026: The German government is planning a tax-free crisis bonus of €1.000. Trade associations criticize this as "out of touch with reality".
Between October 2022 and December 2024, employers could pay their employees a tax- and contribution-free bonus to at least partially mitigate the financial burden caused by record inflation at the beginning of the war in Ukraine. This tax-free bonus on top of salary was limited to €3.000 at that time.
Following a similar model, the German government is now planning a tax-free relief bonus of €1.000 . This was announced by the governing coalition. Employers will be able to pay out this crisis bonus on a voluntary basis until the end of 2026. The companies themselves will be able to deduct the bonus from their taxes.
Furthermore, the mineral oil tax will be reduced by 17 cents per liter of gasoline and diesel – initially for two months. Read more here .
Given the fragile economic situation and the strained earnings and liquidity situation, the German Confederation of Skilled Crafts (ZDH) doubts that many companies will be able to take advantage of this opportunity. Accordingly, the criticism is: "The coalition's decision offloads the pressure to provide relief onto businesses and companies. Consequently, the pressure on employees is likely to be directed against the companies."
Operations management
Operations management
Operations management
The trade association, which represents almost one million businesses, regrets that effective relief measures for companies , such as the abolition of the solidarity surcharge, are not planned.
"Against this background, it is all the more important that the announced income tax reform also specifically contributes to relieving the burden on partnerships," emphasizes Jörg Dittrich, President of the German Confederation of Skilled Crafts.
The German Construction Industry Association (Bundesvereinigung Bauwirtschaft) , which represents the German construction and finishing trades, is disappointed with the results of the coalition meeting. "Instead of urgently needed relief for businesses, the federal government is delivering the opposite: it is unilaterally shifting the costs of its measures onto companies," says Marcus Nachbauer , Chairman of the Association. "The planned tax- and contribution-free relief bonus for employees may sound good politically – but economically it is unrealistic for many businesses."
Given the exploding costs of materials and raw materials, numerous companies are already operating at the limits of profitability. The rising number of bankruptcies demonstrates the seriousness of the situation. "For many businesses, such a bonus is simply unaffordable. A simple principle applies: only what has been earned can be distributed," Nachbauer emphasizes.
The reduction of the energy tax by 17 cents is overdue and a step in the right direction. However, it comes late and is far from sufficient. "Despite this measure, the economic pressure on consumers and businesses remains high."
The roofing trade supports the criticism from the construction industry and the German Confederation of Skilled Crafts (ZDH): The planned bonus shifts the responsibility for relieving the burden on citizens unilaterally onto businesses. Managing Director Ulrich Marx of the Central Association of the Roofing Trade emphasizes: "The federal government is ignoring reality: Many businesses are already operating at the limits of profitability. Instead of short-term measures, we need long-term solutions – from expanding the energy supply and accelerating the development of renewable energies to sustainable social security systems."
The German Metalworkers' Association (BVM) , which represents 30.000 metalworking companies, also criticizes the bonus. BVM President Willi Seiger says: "It raises expectations among employees that many companies cannot meet given the difficult economic situation. Hardly any small or medium-sized metalworking company can currently finance additional wage costs due to the economic climate and the already high cost structures in Germany. For example, a company with 55 employees incurs an additional €55.000 in costs that cannot be offset by the savings from the reduced fuel tax cut."
The additional special payments to relieve the burden on employees are appropriate and important if they are financed by the promised savings in the federal budget. "As always, the chosen political solution leads to an additional burden on our medium-sized businesses. It deprives companies, which are under enormous economic pressure due to transformation processes, of liquidity and reduces the returns for important investments in necessary restructuring measures," said Seiger. Wage negotiations are the responsibility of the collective bargaining partners, i.e., the unions and employers' associations, and not politicians.
However, lowering the mineral oil tax is a first real step towards relieving the burden on businesses.
The new tax relief bonus is expected to be structured similarly to the inflation adjustment bonus. Employers and employees will have to wait until the bonus is legally enshrined. The inflation adjustment bonus was introduced by amending the Income Tax Act (EStG) by adding a new paragraph.
To offset the reduced revenue, the tobacco tax is to be increased as early as 2026.
Furthermore, the coalition intends to implement a major reform of income tax on January 1, 2027 , to provide permanent relief for low and middle incomes.
The exact details of the 2026 tax relief bonus are not yet known. However, it is intended to be modeled on the inflation adjustment bonus, as Chancellor Friedrich Merz explained at the press conference on the planned tax relief measures. Like the previous coronavirus bonus, the crisis bonus will be a voluntary payment from employers.
At that time, the employer could decide whether, when, and how much of a bonus to pay. Partial payments were also possible and should be possible again. Ultimately, it is the employer who pays the bonus on a voluntary basis.
The tax-free inflation compensation bonus was designed in a straightforward manner . Both cash and in-kind benefits were eligible. At the time, it was sufficient for the employer to clearly indicate that this bonus was related to the price increase, for example, by including a corresponding note on the payment slip as part of the payroll statement.
According to the Federal Statistical Office, more than eight out of ten salaried employees (86,3 percent) in Germany received the inflation bonus. The average payment per person at that time was €2.680.
Salary extras as employee motivation. More on the topic of tax-free salary extras – from e-bikes and back care courses to smartphones – read more here .
DHB is now also available digitally! Simply click here and register for the digital DHB!
Newsletter
2 Comments
Write a comment