Inflation compensation bonus in private households

The inflation compensation bonus (Inflationsausgleichsprämie) is a voluntary bonus payment by the employer to employees of a maximum of € 3,000, which can be paid free of tax and social security contributions until the end of 2024.

Conditions for the inflation compensation bonus

Regardless of whether it is a domestic help, nanny or carer, whether it is a mini, midi or full-time job, every employer can pay an inflation compensation bonus to their employees.

However, some general conditions must be considered:

• The bonus payments can be paid in any amount until the end of 2024 and, if desired, in partial amounts, but may not exceed a total of € 3,000 in the period between October 2022 and December 2024
• The payment is a voluntary benefit in addition to the agreed salary. If, for example, no vacation or christmas bonus has been contractually agreed, you can use the inflation compensation bonus. 
•  The bonus payment is completely free of tax and social security contributions, i.e. neither the employer nor the employee has to pay any additional taxes or costs. Both sides benefit from this option.

Pay inflation compensation bonus via quitt

If you would like to pay a bonus to your domestic help, this can be done unbureaucratically. All you need to do is mark the transfer and include a note on the payslip. You can therefore transfer the bonus directly to your help with the subject “Inflationsausgleichsprämie” and inform us of the payment in receipt via [email protected]. We will update the payslip accordingly and send it to your employee.