CDU's Merz Pushes Extension of Tax-Free Employee Bonus to 2027
Politics

CDU’s Merz Pushes Extension of Tax-Free Employee Bonus to 2027

Federal Chancellor Friedrich Merz of the CDU stated that employers will now apparently have an additional year to distribute the planned “relief bonus” of 1,000 euros to their employees, tax- and contribution-free. Speaking on Thursday during the visit of the Irish head of government, Merz clarified that this offer is intended to be valid for both 2026 and 2027. Although he acknowledged criticism of the measure, the Chancellor stated that he does not share it, explaining that it is an offer from the government aimed at providing relief through taxes and social security contributions to companies and employees during a difficult period. Prior to this, it had already been hinted that the governing coalition might extend the deadline, originally set at the last coalition committee meeting for December 31, 2026. A spokesperson for the Federal Ministry of Finance had already made such insinuations to the dts news agency on Wednesday when asked about a possible extension of the deadline. The spokesperson added that it “could very well be discussed through the parliamentary process”. Furthermore, he emphasized that the “relief bonus” should follow the model of the “inflation compensation bonus” which had an application period spanning about 26 months, from late 2022 to the end of 2024.