Inflation bonus for pensioners: New opportunity for mini-jobbers - financial expert explains

Inflation bonus for pensioners: New opportunity for mini-jobbers - financial expert explains

According to a report by www.morgenpost.de,

So far, the over 20 million pensioners in Germany have not benefited from the inflation premium. The inflation compensation bonus of up to 3,000 euros was introduced mainly for employees. However, there is now the possibility that pensioners with a mini-job can also benefit from this bonus, provided the employer agrees. Despite the lack of a legal obligation, it could be worthwhile for employers because the bonus is not counted towards the earnings limit of part-time employees.

What is particularly criticized is the unequal treatment between federal pensioners who receive the inflation bonus and other pensioners who receive nothing. The adjustment of statutory pensions in 2023 does not compensate for inflation of over six percent, which has led to calls for an inflation bonus for all pensioners.

The introduction of the inflation compensation bonus for pensioners with mini-jobs could have an impact on the labor market and the financial sector. Employers who decide to pay the bonus could thereby create incentives to retain or recruit qualified workers in mini-jobs. At the same time, financial burdens for employers and employees that would arise if the mini-job were converted into a midi-job subject to social security contributions could be avoided. This measure could influence the employment landscape in Germany and lead to a stronger bond between mini-jobbers and their employers.