Martina Klement (CSU) Calls for Improvements to Tax Relief Bonus
Germany's €1,000 tax-free employee bonus faces backlash from businesses
Caputh (dpa/bb) – Brandenburg's Economics Minister Martina Klement (CSU) has expressed openness to the idea of short-term tax breaks for employees as an alternative to the government's tax relief bonus. "That certainly has its appeal," Klement said in response to a proposal by Jörg Dittrich, president of the German Confederation of Skilled Crafts (Zentralverband des Deutschen Handwerks). Dittrich had suggested that the state could exempt the first €1,000 of wages in May, June, or July from taxes and social security contributions.
Klement criticized the current form of the relief bonus as "not particularly helpful," arguing that it creates expectations many businesses cannot meet. She described the crafts association's proposal as "undoubtedly the more desirable option from the companies' perspective," though she cautioned that federal and state governments must ensure such measures remain financially viable.
On Friday, the Bundestag paved the way for tax-free relief bonuses of up to €1,000 that employers can pay to their staff. Parliament approved an amendment to the Income Tax Act with votes from the grand coalition, though the Bundesrat must still give its approval—scheduled for May 8.
"A Poisoned Gift"
Wolf-Harald Krüger, president of the Chamber of Commerce for East Brandenburg, criticized the government's approach, saying, "The federal government placed the order and then left businesses holding the bill." Not all companies, he argued, are in a position to hand out "extra gifts." Yet employees now expect them. "We're in a situation where our workers assume we'll provide this," Krüger said, adding that businesses have no way to resist the pressure. "This is a very poisoned gift."
Under the plan, employers can pay employees a tax-free relief bonus of up to €1,000 this year and until June 30, 2027. In a morning interview with RBB Inforadio, Klement suggested that other measures—such as increasing the commuter tax allowance—would be more effective.
