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Energiepauschale 2022: 300 Euro – When and How Will Be Paid?

Energypauschale 2022, As part of the 2022 relief package, the Federal Republic’s government has announced a one-time €300 energy flat rate allowance. The intention of this relief package is to help people in Germany cope with the current energy crisis caused by Russia’s invasion of Ukraine.
 
But, there were many questions about when, how, and who would get these benefits. The Federal Ministry of Finance released the conditions that must be satisfied to get the energy price flat rate.
An overview about the Energypauschale 2022

An Overview about the Energypauschale 2022

Who will receive this €300 Energypauschale?

The traffic light government had announced this aid package for everyone in Germany. Unfortunately, a compromise had to be made because of the difficulty of implementation. The Federal Ministry of Finance states that as of September 2022, everybody in an Employment relationship with the employer who is subject to Income tax and falls between tax brackets 1-5 is entitled to receive a one-time payment of 300 euros. The company will provide this benefit in the form of a salary supplement.
 
Workers, employees, trainees, civil servants, judges, soldiers, short-term and part-time employees (“mini-jobbers”), employees in the passive phase of partial retirement, working students, and students in paid internships are all eligible for this Energypauschale, according to the Federal Ministry of Finance. The advance tax payment for September for self-employed people will be decreased appropriately.

Is there any tax on this 300 Euros?

It’s true that you’ll have to pay income tax on these 300 euros, and the amount you pay will depend on your tax bracket since there are no social security or Medicare contributions attached to them. This tax system is set up that way because it makes sense for high-income taxpayers to have more generous deductions than low-income ones. The high earners should be taxed at a higher rate than the middle & the lower income class.

When can we expect to get the Energiepauschale 2022?

In September 2022, the company will include this one-time payment of 300 euros in the paychecks of all eligible workers.

Whats's Next?

While students and pensioners are not included in this relief package, the German government is working on a 3rd relief package to help them deal with the rising cost of living.
 
In case you have any more questions about the energy price flat rate (EPP), the Federal Ministry of Finance has updated its Frequently Asked Questions (FAQs).

References

1. “Energy flat rate: Who gets the 300 euros – and who doesn’t”, Frankfurter Rundschau  

2. “300 euros energy flat rate: How and when does the money come into my account?”, Merkur.de  

3. “FAQs – Energiepreispauschale (EPP)”, bundesfinanzministerium.de  

 

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WRITTEN BY

Dhanesh

To put it simply, I am an Indian Expat who has been residing in Germany since 2015 and who also happens to be the guy behind Indo German Central. I chose to create this blog in order to give Indians with valuable information and my experiences about Germany. If you find this information helpful, please consider buying me a Coffee to support our website.

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