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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure DE-2022-23/2226 Updated – measures in Germany

Energy price lump sum allowance for people paying income tax

Energiepreispauschale (EPP)

Country Germany , applies nationwide
Time period Temporary, 01 June 2022 – 30 September 2022
Context COVID-19, War in Ukraine
Type Legislations or other statutory regulations
Category N/A
– Support for energy bills
Author Birgit Kraemer (Hans Boeckler Foundation) and Eurofound
Measure added 09 May 2022 (updated 27 February 2023)

Background information

In the course of the Russian aggression against Ukraine energy prices have been significantly rising, including, among others, for the heating of homes. In March 2022, the German government decided to adopt an energy relief package addressed to citizens, workers, and companies. The energy price lump sum (EPP) is a central part of the package.

Content of measure

The energy price lump (EPP) sum is a one-time payment for all German residents subject to income tax duties. The sum of €300 gross will be paid to employees and other persons paying income tax (self-employed, pensioners) via the salary payment of the employer (who will be compensated by the federal state) and is taxable. The one-time payment is meant to reduce the energy price burden for citizens. Since the EPP is taxable, the net benefit is dependent on the overall yearly income of the receiver and - due to the tax progression - higher for those with a smaller taxable income.

Updates

The following updates to this measure have been made after it came into effect.

14 February 2023

The measure is no longer active. Employed persons received a one-time energy price lump sum of €300 in September 2022. The payment was made via the employer's payroll.

Use of measure

The EPP is designed as an automatic payment without the need to register or apply. It can thus be assumed that everyone eligible should finally receive it.

Target groups

Workers Businesses Citizens
Applies to all workers Solo-self-employed
One person or microenterprises
Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners participated with other interested groups in an oral hearing of the competent committee of the national parliament (Bundestag).

Views and reactions

Both social partners supported the measure in general.

Sources

Citation

Eurofound (2022), Energy price lump sum allowance for people paying income tax, measure DE-2022-23/2226 (measures in Germany), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DE-2022-23_2226.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.