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
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) |
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.
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.
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The measure is no longer active.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. |
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.
Workers | Businesses | Citizens |
---|---|---|
Applies to all workers |
Solo-self-employed
One person or microenterprises |
Applies to all citizens |
Actors | Funding |
---|---|
National government
|
National funds
|
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:
Social partners participated with other interested groups in an oral hearing of the competent committee of the national parliament (Bundestag).
Both social partners supported the measure in general.
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
Share
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.
Article12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.
Article12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Article5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.
ArticleDisclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.