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Everything you need to know about the €300 energy relief payment from Germany

Everything you need to know about the €300 energy relief payment from Germany

Beginning in September 2022, German workers will start receiving a €300 energy relief payment to aid with rising energy prices. However, many people won’t receive the full amount. The German government plans to provide taxpayers who have employed a one-time compensation as part of a plan to reduce the growing cost of living.

 Everything you need to know about the €300 energy relief payment from Germany
Everything you need to know about the €300 energy relief payment from Germany

How will be the payment distributed?

As of September 1, 2022, employees liable for income tax will be granted a one-time lump-sum energy price allowance of €300 under the new German Tax Relief Act 2022. This is how the residents of Germany will receive the stipend.

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Employed people:

    •  On September 1, 2022, regardless of the length and extent of the employment connection, employers must pay the €300 energy price allowance to all employees and apprentices they employ who are subject to wage tax classes I to V.
    • Payments would be made throughout the September 2022 payroll cycle. They would not be required to pay into social security but would be subject to wage tax withholdings.

Mini jobs:

    • People who work in so-called mini jobs are subject to additional laws that are included in the Tax Relief Act of 2022. (i.e., employees who are marginally employed).
    • These workers must formally attest in writing to their employers that their secondary job is their primary job. The confirmation must be retained alongside the wage tax records, according to the legislation.
    • The energy price allowance is tax-free for the mini-jobs subject to flat-rate taxation. This avoids paying out the energy price lump sum more than once.
    • Whether through their employers or a tax assessor, everyone who worked as a worker at any point in 2022 will earn €300.

Self/Independent employers:

    • In addition to employees, the lump sum is given to independent contractors, craftsmen, and other self-employed workers. They view the payment as other income but are exempt up to a maximum of €256.
    • If their September advanced income tax payment is enough to cover the lump sum, they will receive the lump sum instead of the whole amount.
    • The flat-rate energy allowance is given to self-employed individuals with low advance payments and employees who are not employed on September 1 via their income tax return without completing a separate application.

Pensioners/low-income individuals:

    • Pensioners are not eligible for the payout if they are unemployed in 2022. However, if they work for a little period in 2022, even if it’s just a one-day mini-job, they are eligible for the reward, according to sources in German media.
    • Low-income individuals will pay little to no tax, while high-income individuals will receive a smaller amount.
    • Families will now get a one-time Kinderbonus of €100 per kid this year in addition to the €300 payment. In July, the bonus will be disbursed along with the child benefit payment.

Social welfare and students:

    • Additionally, recipients of social welfare will receive €200 in compensation. While recipients of the unemployment benefit Arbeitslosengeld will receive €100.
    • A heating cost allowance of €270 for housing benefit recipients and €230 for BAfög-eligible students is also anticipated.

In Germany, energy costs have been sharply rising. The money will bring joy to a lot of people. However, the lump sum energy price represents an additional effort for employers. In a nutshell, the German government’s payment of €300 for energy relief assistance is a comfort for the nation’s residents. Also, to help them tackle the rising prices of necessary goods.


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