The inflation relief package at a glance

Tax- and contribution-free cost-of-living bonus
Companies will be given the option of paying their employees a tax- and contribution-free cost-of-living bonus of up to €3,000 each in 2022 and 2023. The wording of the law does not stipulate any further requirements for the tax exemption up to the amount of € 2,000. The full € 3,000 can only be utilized if the payment exceeding € 2,000 is granted e.g. internally to all employees or certain groups of employees.

Tip: In relation to employee profit sharing, a common limit for tax exemption of € 3,000 per year applies. If a cost-of-living bonus is paid out, the profit sharing is only tax-exempt to the remaining extent up to € 3,000 (and vice versa). Employees can, however, subsequently reclassify a profit-sharing bonus already granted as a cost-of-living bonus in 2022, as only this bonus is also exempt from SI contributions and non-wage labor costs.

Climate bonus
The climate bonus for adults will amount to € 250 in 2022; the originally planned regional differentiation will no longer apply. In addition, recipients of the climate bonus will receive a special supplement ("anti-inflation bonus") of € 250, which is only taxable at the standard tax rate if the income exceeds € 90,000.
The anti-inflation bonus and the climate bonus are paid out automatically. Either via the account stored in Finanz Online or as a voucher by RSa letter.

Reduction in accident insurance contribution
The accident insurance contribution will be reduced again as of 2023, from 1.2% to 1.1%.

Relief for families
The family bonus plus will be increased ahead of schedule to € 2,000 for the current year. In August, a one-time supplement of € 180 was transferred to the family allowance. The additional child allowance will also be increased.
The National Council has passed the first tranche of the relief package with numerous measures. Further legislation, such as the planned bill to abolish cold progression, remains to be seen.