German parliament approves voluntary 1,000-euro worker relief bonus
BERLIN, April 24 (Reuters) - Germany's lower house of parliament on Friday approved a relief bonus of up to 1,000 euros ($1,169.30) for workers as part of a package to cushion the impact of high gas prices due to the Iran war.
Lawmakers from the governing coalition of the conservative CDU/CSU and the Social Democrats SPD backed the measure, while the AfD and the Left Party voted against it and the Greens abstained.
Under the plan, companies can pay a one-off bonus to employees until June 30, 2027. The payments will be tax-deductible for employers and tax-free for workers.
The bonus is voluntary, spurring uncertainty over how many companies will take part amid a weak economic backdrop.
The coalition estimates the measure will cost at least 2.8 billion euros in lost tax revenue. To help fund the measure, the tobacco tax is due to rise this year.
The bonus forms part of a broader relief package after a sharp rise in gas prices. Business groups have criticised the government for shifting the burden of supporting households to employers.
Germany introduced a similar tax-free bonus of up to 3,000 euros during the 2022 energy crisis that followed Russia's invasion of Ukraine.
($1 = 0.8552 euros)
