Over eight in ten employees in Germany’s collective wage agreements (86.3%) received an inflation compensation premium between October 2022 and December 2024, according to a recent report by the Federal Statistical Office (Destatis). The average payout per person was 2,680 euros.
The inflation compensation premium was a tax-free special payment, capped at 3,000 euros, distributed to employees based on their collective wage agreements, either as a total amount or in staged payments. This measure was part of the German government’s third “relief package” to mitigate the consequences of the energy crisis, which made the special payment tax-free.
There were significant differences in the average amount of the inflation compensation premium and the proportion of employees who received it across various industries. The lowest premiums were paid in the construction industry, with an average of 1,103 euros, and in the retail sector, with an average of 1,419 euros. In contrast, the highest premiums were agreed upon in the public administration, defense, social insurance, and education sectors, all with a maximum of 3,000 euros. The entertainment, arts, and leisure industry, as well as the water, waste, and sewage management sector, also saw above-average premiums, with 2,976 euros and 2,942 euros, respectively.
All employees in the public administration, defense, and social insurance sectors had a collective agreement-based entitlement to the inflation compensation premium. Many employees in the education, mining, and manufacturing sectors also had such an entitlement. On the other hand, the fewest employees in the hospitality and services sectors (11.6% and 12.2%, respectively) benefited from the premium, according to the statistics.