2022 Relief Package: The German federal government has decided on the following

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As part of its effort to make sure people can cope with inflation, the German federal government has approved parts of the 2022 relief package. That means special payments for heating, child bonus and grants for Hartz 4 recipients. Read more below.

2022 Relief Package: The relief package refers to the financial measures that the German federal government is undertaking in order to help combat rising prices and inflation.

Because of the Ukraine war, many things have become more expensive in Germany. The prices of some groceries in the supermarket have risen and energy costs in particular have skyrocketed. This is particularly a problem for low-income earners and recipients of social benefits. The planned oil embargo against Russia because of the Ukraine conflict does not make this situation any easier.

2022 Relief package from the federal government: These are the planned measures

2022 Relief packagWhat you can expect
9 euro ticketNationwide valid monthly ticket in regional traffic for 9 euros
Energy flat rate300 euros for employed persons subject to income tax
Hartz IV bonusAdditional allowance of 100 euros for recipients of social benefits
Child bonus100 euros per child
Fuel tank discountLower energy tax on fuels: petrol 30 cents and diesel 14 cents less per liter
Commuter allowanceFrom the 21st kilometer there is now 38 cents instead of 35 cents

9 euro ticket for train and bus

2022 Relief Package

For 9 euros you can travel throughout Germany for a month in June, July or August.

Duration: 3 months

Benefits of the 9 euro ticket

  • Flat rate: Any number of trips in the selected month in local transport
  • Travel all over Germany
  • Spontaneous and mobile: Bookable online and via our apps

Important

Subscribers also benefit from the reduced price and will be informed about the billing process. You don’t have to do anything else.

300 euros energy flat rate from the state: when will I get the money?

2022 Relief Package

An important part of the 2022 relief package from the German federal government is an energy price lump sum of 300 euros.

Amount: 300 euros

When: September 2022

The government is reacting to the sharp rise in energy and fuel prices with extensive relief for people in Germany worth billions with a relief package which includes a flat- rate energy price allowance of 300 euros

The most important information about the 300 euros energy flat rate at a glance

► Who will receive the 300 euros?

All employees in Germany that are subject to income tax should receive this one-time payment of 300 euros.

► When do I get them?

For employees, it is paid in September.

► Do I have to apply for it?

NO. It will be paid out with the payslip.

► Do I have to pay tax on the payment?

Yes, the payment is taxable.

► How much does that cost the state?

The German Ministry of Finance estimates a total of around 13.8 billion euros. Since the one-off payment is taxable, the bottom line costswill be around 10.4 billion euros.

The German Federal government doubles Corona bonus for Hartz IV recipients

2022 Relief Package

The German federal government has increased the planned one-off bonus for Hartz IV recipients from 100 euros to 200 euros due to the stress caused by the corona pandemic. The bonus is scheduled to be paid out in July 2022.

Amount: 200 euros

When: July 2022

What is Hartz IV?

Hartz IV is the colloquial term for unemployment benefit II. This benefit from the Federal Employment Agency serves to secure your livelihood. Its legal basis is the Second Book of the Social Code (SGB II).

You can receive unemployment benefit II if you…

  • able to work at least 3 hours a day
  • are at least 15 years old and have not yet reached the statutory retirement age,
  • have your habitual residence in Germany
  • You are unable to secure your livelihood (and that of your family) or not sufficiently

or

  • live with an employable person entitled to benefits in a benefit community.

If you cannot work at least 3 hours a day (e.g. due to illness), you are not entitled to unemployment benefit II. Instead, you have the option of applying for social benefits. The same applies if you have already reached the statutory retirement age.

Unemployment benefit II is intended to guarantee a dignified life.

Origin of the term Hartz IV:

The colloquial term Hartz IV goes back to the so-called Hartz reforms in 2005. Under the direction of Peter Hartz, a commission drew up proposals for the reform of labor market-related social legislation. Including Hartz IV – the part of the reform that dealt with the benefits for recipients of unemployment benefit II.

Child bonus as part of the 2022 Relief package

2022 Relief Package

Energy costs will continue to rise in 2022. That is why families with children should now also be particularly relieved! As part of a package of measures, the German cabinet has decided, among other things, to make a one-off payment for families.

Amount: 200 euros

When: July 2022

The most important information about the Child bonus: 100 euros per child in July 2022

► How much money is will families get?

Each child will receive 100 euros

► When will the money be paid out?

The amount is to be paid out in July 2022 in the form of a one-off payment. It is planned that the money will come with the child benefit payment dates for July.

► Who is eligible?

The one-time payment of 100 euros per child is to be given to families who are entitled to child benefit in July

►Do I have to apply for the money?

An application for the payment of the child bonus is not necessary. The income of the family also plays no role in the payment.

What does the 2022 relief package mean for fuel prices?

2022 Relief Package

The federal government will temporarily lower taxes in order to push fuel prices back below the threshold of 2 euros per liter.

So will fuel prices really go down? 

Below is an overview of the most important questions and answers for you

► How much will taxes on fuel drop?

The tax deduction is a good 35 cents for petrol and just under 17 cents for diesel.

► What does the relief package mean for prices at the pump?

Purely based on the price of oil and without special effects from the Ukraine war, E10 premium petrol should actually be less than 2 euros now. Recently, fuel prices – especially diesel – have decoupled from the development of oil prices. Overall, there is room for further price reductions.

► What could fuel prices look like in the near future?

This depends on the general development. But if you calculate – as an example – with a complete transfer of the tax reduction and the nationwide daily average prices on this week, the theoretical fuel price would be 2.009 euros per liter of diesel and 1.73 for Super E10.

► How much does the state continue to collect from the fuel price?

There are three state components:
• The mineral oil tax for diesel which is 33 cents per liter
• The energy tax for petrol which is just under 36 cents
• The VAT

In the theoretical price example, it would be just under 32 cents for diesel and around 28 cents for petrol.

The third factor is the CO2 price: According to the Fuels & Energy trade association, it accounts for around 8 cents for diesel and around 7.2 cents for petrol – how much exactly depends on the proportion of biofuel.
Overall, the state share for diesel is around 73 cents per liter and for petrol just under 71 cents.

Increase in the commuter allowance: This is what motorists get

2022 Relief Package

The German federal government has also decided to increase the long-distance commuter allowance (called “Entfernungspauschale” in technical jargon). This is intended to cushion the high costs of fuel.

An increase in the commuter allowance was already planned – but only for 2024. The increase was brought forward because of the Ukraine crisis. It applies retrospectively from January 1, 2022.

From the 21st kilometer, commuters now get 38 cents. The lump sum may be deducted from the taxable income per working day. The simple distance to the workplace counts.

The increase will initially only apply until 2026.


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