The lower house of the German Parliament has approved a support bonus of up to 1,000 euros for employees and fuel discounts in May and June.

The German Parliament approved on Friday a package of measures that includes a support bonus for employees of up to 1,000 euros, in response to the rising gas prices caused by the war in Iran. The bonus, which can be granted until June 30, 2027, is tax-deductible for employers and tax-free for employees, but it is granted voluntarily, which raises uncertainties regarding its implementation. The governing coalition estimates that the measure will lead to tax losses of at least 2.8 billion euros, and to compensate for these losses, the tobacco tax will increase. Additionally, fuel taxes will be reduced by approximately 0.17 euros per liter in May and June, providing an additional support of 1.6 billion euros for households and companies. Critics argue that the government should focus on targeted aid for vulnerable households, instead of transferring the burden of support onto employers.