“Inflation Allowance” for civil servants, but also for Chancellor and Ministers

Citing a bill from the Home Office, BILD newspaper revealed that the chancellor and federal government ministers will be among those working in the public sector who will receive an “inflation allowance” of €3,000.

About 2.5 million workers in federal, state and municipal enterprises will receive a tax-free allowance of 3,000 euros to offset increases in goods and services due to higher inflation. This clause is stipulated in the collective labor agreement, while the corresponding provisions are included in the sectoral agreements of many branches of the private sector, such as the metallurgical industry, electricity and pharmaceutical companies. Wider public sector employees will receive an additional €1,200 in June and €220 per month from July to February. Accordingly, retirees in the country will receive an allowance according to the percentage of their last salary that they were earning. The maximum percentage is 71.5% and therefore they will receive an allowance of €2,152.50.

But according to BILD, the Home Office bill now states that Chancellor Olaf Solz and federal government ministers are entitled to the extra amount.

The criticism is already coming from the taxpayers’ union: “There is still no federal budget for 2024 because enough cuts cannot be made and ministers receive an inflation allowance? Absolutely wrong message!” Union President Rainer Holznagel told the newspaper. for such an allowance.” The Ministry of Interior indicated that the draft law is still in the initial stage of its processing.