Merz: Employers can pay an incentive bonus exempt from social security contributions
Berlin, April 13 (Hibya) — German Chancellor Friedrich Merz spoke about an incentive package for 2026 that includes tax exemptions and social security contribution support for employers.
German Chancellor Friedrich Merz explained the scope of the financial support that employers can provide to their employees.
Providing details about the measure, Merz said, “Employers can pay an incentive bonus of up to 1,000 euros in 2026, exempt from taxes and social security contributions, and claim it as a tax deduction.”
Drawing attention to the main purpose of the regulation and energy costs, Merz said, “This is an additional contribution aimed at easing the financial burden in the face of rising fuel prices.”
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