Despite the rejection of the so-called “relief premium” by the Bundesrat, the Federal Government remains committed to implementing its plan. Speaking in Berlin on Friday, Deputy Government Spokesperson Steffen Meyer announced that “further procedural steps are being cleared”.
These next steps would include renewed discussions with the individual states. Meyer emphasized the Federal Government’s belief that the measure is necessary to support employees during what they deem a “difficult situation”. He stated that the government remains convinced by the policy, though when asked how surprised they were by the states’ refusal, he remained vague, admitting, however, that previous consultations had allowed them to anticipate the Länder’s position.
The coalition, comprising the Union and the SPD, originally aimed to provide employers with the flexibility to pay up to €1,000 additional bonuses to their employees, tax- and contribution-free, through the end of 2027. The Bundesrat, however, rejected the proposal during its session on Friday, citing concerns over substantial tax losses for the federated states.
It was noted that prior to the Bundesrat’s opposition, the measure had also faced criticism from employers who argued that they were under significant pressure and unable to afford additional payments to their staff.
