The Federal Council (Bundesrat) rejected the “Relief Bonus” (€1,000) that had been passed by the Bundestag. The measure failed to achieve the required majority within the state chamber (Länderkammer) on Friday, meaning it cannot take effect for the time being.
The “Relief Bonus” was designed to allow employers to pay their employees a bonus of up to €1,000, which would be exempt from taxes and contributions until June 30, 2027. This payment was intended to supplement regular wages.
This bonus is part of a broader package of measures that the federal government introduced to alleviate the financial strain faced by citizens due to the conflict in Iran. The package also included a “fuel discount” which the Federal Council had previously approved in a special session at the end of April.
The states, however, highlighted significant financial drawbacks. They pointed out that the bonus would lead to estimated tax revenue losses of 2.8 billion euros. According to the states, these losses would have to be carried predominantly by the budgets of the regional and local governments, without any planned counter-funding or form of compensation.