Energy flat rate: who is entitled to the 300 euro bonus?

The war in Ukraine also puts the German market to the test. To compensate for high energy prices due to sanctions against Russia, the federal and state governments have long adopted the flat energy tariff announced by the federal government.

But what exactly does this mean for employees and employers? Who receives the flat rate and who receives what amount? What rules exist for part-time workers or mini-jobbers, students and pensioners? And when will it be paid?

What exactly is the energy flat rate?

In addition to the fuel discount and the 9 euro ticket, the flat rate is part of the second package of benefits to accommodate citizens due to the overall increase in the cost of living. The package is effective from June 1, 2022.

The flat rate energy price is a one-off measure of 300 euros (§112 EStG). Most payments to employees will take place from September onwards.

Who receives the flat rate?

In general, the energy flat rate is aimed at all employees subject to income tax. However, he gives in §116 EStG Conditions that must be met:

• Employees must have their first employment relationship in progress at the time of payment.
• Those who fall into one of the tax classes I to V are entitled to it.

Only pensioners are excluded from the measure: as they are not employed, they do not have any employment relationship and therefore are not subject to tax, unless they also work. There are special rules for part-time employees or students.

Flat rate on the price of energy for part-time employees

Even those who work part-time can benefit from the flat-rate energy price allowance. This means that both mini-jobbers on the basis of 450 euros and short-term employees receive the flat rate. However, there are still conditions that must be met:

1. The employee must confirm in writing to the employer that the employment is his or her first employment relationship.
2. This only applies if the employer submits a tax return. If this is not the case, for example because income tax is due §40a EStG If the tax is charged as a flat rate, the employer is not required to pay the flat rate as they will not receive a refund through income tax registration. Employees will therefore only be able to obtain them via their 2022 tax return.

Both conditions should definitely be discussed with part-time employees so that there are no misunderstandings or disappointments.

Flat rate on the price of energy for students

For students the situation is different: the BAföG serves as an alternative means of compensation for the state, because only students who, in addition to their studies, work part-time or full-time and are therefore also subject to taxes are entitled to the energy price compensation. In this case the same rules apply as for other employees. Students unable to work due to disability also receive a portion of the flat rate. However, only 100 euros are charged here.

Energy flat rate for pensioners

In principle, pensioners are excluded from the flat rate of the energy price because, as non-employed persons, they are not subject to tax. However, there is a trick with which this group of people can also secure the 300 euro bonus: according to the CDU financial expert, it is completely sufficient for pensioners to carry out a mini-job or self-employment one day a year. This also includes taking care of his grandchildren. However, the money for this purpose must have been verifiably transferred to an account.

In this way, pensioners do not receive the money directly, but can get it, like mini-jobbers, through the 2022 tax return, provided that proof is available, for example in the form of a bank statement. Payment will then take place here in May 2023.

Flat rate on the price of energy for people on parental leave

Parents who are on parental leave in September are also not subject to the classic requirements because they are not currently employed at that time. During parental leave, parents do not receive any pay from the employer. But here too there is a special regulation that allows you to receive the flat rate: according to the Ministry of Finance, «all citizens who met the eligibility requirements on one day in 2022» will receive the bonus. It is therefore sufficient for parents to work part-time in 2022. People on parental leave and pensioners receive the lump sum via their tax return.

When do you receive the flat rate?

According to the Income Tax Law 2022, the right to the energy price allowance arises on 1 September 2022 (§114 EStG).

However, if the employer does not pay the money – for example in the case of mini-jobs, self-employment or other groups of people mentioned above – the right to the subsidy must be verified by the tax office only after the submission of the tax return. The process therefore takes longer. Interested individuals will then be able to prepare for payment in May 2023.

How is the flat rate processed?

The payment of 300 euros must be paid through the employer’s pay slip starting from September. The money constitutes a salary subsidy, which employers can take separately from the total amount of payroll tax to be withheld (§117 paragraph 2 EStG). Payroll tax is refunded to employers:

If you file quarterly, you can also pay the lump sum in October. However, employees should also be informed in advance. Because everyone will expect the extra money in September.

Important Tip:

After §117 paragraph 4 EStG A flat rate tariff for the price of energy paid by the employer must be included in the electronic income tax certificate (§ 41b paragraph 1 sentence 2) can be specified with a capital letter E.

Flat rate on the price of energy for self-employed workers

Since self-employed workers do not have an employer, they have to secure the lump sum differently: in this case, the income tax advance for the third quarter of 2022 is simply reduced by 300 euros on September 10, 2022.

Flat rate taxation of energy prices: who gets how much?

The energy allowance is taxable (§112 EStG). The amount of 300 euros is therefore the gross amount. The final amount paid to employees depends on their salary and tax bracket. However, the flat rate is not subject to social security contributions.

Citizens with a high tax rate end up with a very small amount in their account. However, anyone who falls below the basic allowance benefits from the full amount of support.

If you want to know exactly how much money will be left at the end, you can do so using a tax calculator calculate. To do this, add the sum of 300 euros to your gross monthly salary.

Our conclusion

So there are some things to consider here too. Overall, the flat rate energy price is a measure that benefits the majority. If you want to know more about the relevant measures and guidelines, the Income Tax Act 2022 provides all the important answers.