Berlin sticks to one-off bonus for workers despite states' opposition

The German government ​said on Friday it ​would stick to ‌its plan ​for employers to provide a voluntary tax-free relief bonus of up to ‌1,000 euros ($1,177) to workers, after the proposal failed to garner enough support from regional states.

The German government ​said on Friday it ​would stick to ‌its plan ​for employers to provide a voluntary tax-free relief bonus of up to ‌1,000 euros ($1,177) to workers, after the proposal failed to garner enough support from regional states. The bonus is part of a ‌package to cushion the impact of higher energy prices due ‌to the war in Iran.

* The plan was for employers to be able to pay the bonus to their employees without ⁠taxes ​or social ⁠security contributions. * The 16 federal states, which have a say on ⁠many issues in the Bundesrat, or upper house of parliament, ​expect a loss of tax revenue due to the measure, ⁠which was proposed by Chancellor Friedrich Merz's governing coalition.

* The government ⁠remains ​committed to the plan to provide relief for citizens and will decide on the next steps in ⁠the process shortly, a spokesperson said. * The plan may be referred ⁠to ⁠a parliamentary mediation committee, where a compromise could still be reached. ($1 = 0.8497 euros)