The Social Welfare Association Germany (SoVD) expressed its disappointment following the failure of the planned relief bonus during the Bundesrat session. SoVD board chair Michaela Engelmeier told the Funke Media Group newspapers that while many industries and companies had indicated that the tax- and contribution-free bonus was not feasible due to the strained economic situation, it would still have served as an additional form of support for employees.
This measure could have been a tangible help for many, especially given the sharply rising cost of living. Prices for food, energy, and general living expenses remain extremely high. For many people, particularly those with low to middle incomes, financial strains are increasing, with mobility costs being a major concern.
Therefore, the Social Welfare Association advocated for a nationwide social ticket and targeted investments in reliable, comprehensive, and barrier-free local public transportation. Engelmeier also reminded the public that further efforts to alleviate financial strain must not forget the over 21 million retirees.
The tax-exempt premium, which allows companies to pay up to €1,000 to their employees, was ultimately shelved on Friday. This was because the Bundesrat unexpectedly opposed the draft law that had already been adopted by the Bundestag.
