The German government is planning a tax-free “relief bonus” of €1,000 for employees in 2026.
Employers can choose to pay it out, and it will be exempt from taxes and social contributions.
Companies can also deduct the bonus from their taxes, making it financially attractive.
A similar measure during the 2022 energy crisis allowed bonuses of up to €3,000.
To offset lost revenue, an earlier increase in tobacco tax is being considered.
Details on the amount and start date are still unclear.