Position at 8 May 2026. The planned relief bonus of up to EUR 1,000 for employees, free of tax and social security contributions, is not coming for the time being. The Bundestag adopted the bill on 24 April 2026, but the Bundesrat withheld its approval on 8 May 2026. Employers therefore currently have no legal basis for treating such a payment as free of tax and social security contributions in the payroll.
What employers should keep in mind now
Without final legislation there is no sound basis for treating a payment as a tax-free and contribution-free relief bonus in the payroll. Anyone who has already prepared commitments to employees should hold off until the further course of the legislation is clear — running it through the payroll prematurely will otherwise lead to assessments at the next audit.
What was planned
Under the concept as it stood, the bonus was to be voluntary, paid in addition to the wages owed in any event, and available only within a period laid down by law. The measure formed part of a package intended to relieve employees in the face of higher energy and mobility costs. There was to be no obligation to pay it — the decision was to rest entirely with the companies.
Why approval was withheld
The refusal stems above all from the Länder’s criticism of how the costs would be shared. The federal government says it is sticking to the goal of providing relief and intends to decide on the next procedural steps shortly.
Even beforehand, opinion on the measure in German business was divided. Associations pointed out that many companies are themselves facing high costs, which made widespread take-up look unlikely. It was also criticised that under this model relief initiated by the state is shifted in part onto voluntary payments by companies.
Open points for the payroll
- whether part payments and benefits in kind will be expressly permitted
- the specific requirements for the payroll and the documentation
- the period within which a payment could be made on favourable terms
Where this leaves us
In our view the subject is not closed but postponed for now. Companies should follow developments and make payroll-side arrangements only on the basis of final legislation. We are glad to examine whether and how a bonus could be reflected in your payroll once the legal position is settled.