To compensate for inflation: Scholz for tax-free one-time payments from employers

With a tax-free one-off payment from employers, Chancellor Scholz wants to provide relief in view of rising prices. In return, trade unions should waive part of the wage increases.

Chancellor Olaf Scholz wants to propose a tax-free one-off payment from employers to compensate for the increased energy costs. In return, the unions should forgo part of the wage increases in collective bargaining rounds.

The aim is to prevent the inflationary spiral from turning any further, as the “Bild am Sonntag” reports. Corresponding plans were confirmed by the dpa news agency from government circles.

On July 4th, Scholz wants to discuss in a so-called concerted action together with top representatives of employees and employers how the price development can be got under control. The Chancellery assumes that inflation is being driven primarily by the fact that there is a supply bottleneck, both for gas and for other products, which will increase again in the coming year, the newspaper reported.

Extra solution for employees who are not bound by a collective agreement

One argument in favor of the one-time payment is that it reaches the public quickly and employees with low and medium wages benefit the most. However, since only 43 percent of employees are still paid according to the collective agreement, separate solutions are needed for employees who are not bound by a collective agreement and pensioners with a low pension.