86% of German Workers Covered by Collective Agreements Received Inflation Relief Payments

Between October 2022 and December 2024, qualifying employees received an average of €2,680 in tax-free payments to offset rising costs, with significant variations across industries.

The inflation relief payments, introduced as part of the German government’s third relief package, allowed employers to provide up to €3,000 tax-free per employee.
On average, recipients received €2,680, but payment amounts varied widely by sector, with public administration and education workers often receiving the full €3,000, while construction workers averaged €1,103.
86.3% of employees covered by collective agreements benefited from the payments, with nearly universal participation in sectors like public administration and education, but far lower rates in hospitality and certain service industries.
The measure aimed to alleviate financial pressures from the energy crisis and inflation, though experts noted it only partially offset the loss in purchasing power from prior years.
The program concluded at the end of 2024, and experts highlight the need for ongoing wage increases to sustain workers' purchasing power.