Employment law: Can or must I receive the relief bonus of 1,000 euros?

The economic climate in Germany is currently characterized by massive tensions. While the federal government under Chancellor Friedrich Merz is attempting to respond to the drastic energy price increases resulting from the Iran-Iraq War , many employees find themselves in a precarious situation. The increased cost of living poses a significant obstacle, especially for foreign skilled workers who have come to Germany to advance their careers and contribute to the country's prosperity. Amidst this period of political uncertainty and economic strain, the instrument of the "relief bonus" has emerged. However, the hope for a quick financial boost could be disappointed for many, as behind this appealing name lies a legal framework that ... allows extensive freedoms.

The legal classification of the relief bonus

The planned relief bonus is intended to allow employers to pay their employees up to €1,000 tax- and contribution-free in 2026 and 2027. Legally, this plan is based on familiar mechanisms such as the previous COVID-19 bonus or the inflation adjustment bonus. However, there is no legal entitlement for employees to receive this bonus.

This means the decision rests solely with the company . While the government offers an incentive by waiving taxes and social security contributions, the actual burden on liquidity remains with the employer. This is bitter news for highly skilled immigrants, who often work in industries with high cost pressures. While the government raises expectations, it shifts the responsibility to the private sector, leading to profound uncertainty.

Resistance from the business community and small and medium-sized enterprises (SMEs)

Reactions from the business community have so far been more than muted. The skilled trades and small and medium-sized enterprises (SMEs), in particular, which form the backbone of the German economy and are essential for the integration of international skilled workers , strongly reject the proposal . Associations like the German Confederation of Skilled Crafts (ZDH) criticize the government for "ordering a party" that it then makes others pay for. We share this criticism insofar as it creates social injustice. A division of the working world is looming: on the one hand, there are financially powerful corporations that can afford such special payments, and on the other hand, smaller businesses that are already "barely able to breathe."

This dynamic is particularly problematic for international skilled workers, who are often specifically recruited by medium-sized companies. Those working in small businesses, despite high qualifications and full commitment, will likely be left empty-handed. At a time when Germany is competing globally for the best talent, such an unreliable support policy sends the wrong signal. Relief that depends on the employer's luck is not structural support for skilled worker immigration .

The reluctance of large corporations

Even among DAX-listed companies, there is currently radio silence or skepticism. Companies like Volkswagen, Siemens, and Commerzbank are keeping quiet or have already indicated that additional financial expenditures are difficult to justify in times of industry-wide cost pressure. If even these economic heavyweights are hesitant, it clearly demonstrates how questionable the federal government's concept is in its current form.

As a law firm specializing in visa law, we also see this as a missed opportunity for the digitalization and modernization of public administration. Instead of creating complex, voluntary bonus systems, bureaucratic hurdles for skilled workers could have been reduced, or tax relief could have been directly applied to employees. The current debate seems like a political maneuver that ignores the realities of the labor market. Only a few companies, such as the Rossmann chain, have made concrete commitments so far – and even there, the amounts are often significantly below the maximum possible limit of €1,000.

Our conclusion on the relief bonus

In summary, while the relief bonus theoretically offers a possibility for financial improvement, in practice it is likely to be a flop for the majority of employees. Since the payment is purely voluntary, employees should not count on this money. The widespread rejection by employers' associations and the skepticism of corporations suggest that the payout rate will fall far short of that of the previous inflation adjustment bonus. For highly educated foreigners living and working in Germany, the situation remains unsatisfactory, as they are once again dependent on the goodwill of their employers instead of being relieved by clear legal regulations.