One-time payment of 300 euros: Bundestag decides on energy price flat rate for pensioners

In view of rising energy costs, the Bundestag would like to provide senior citizens with financial support.

One-time payment of 300 euros: Bundestag decides on energy price flat rate for pensioners

In view of rising energy costs, the Bundestag would like to provide senior citizens with financial support. According to a new law, they should receive a subsidy totaling 300 euros by mid-December.

The more than 20 million pensioners in Germany will receive a one-time payment of 300 euros in December to relieve them of energy and food costs. The Bundestag decided on the special payment with the votes of the traffic light coalition of SPD, Greens and FDP as well as the opposition groups Union and Left. The AfD abstained. Federal pensioners also receive the money.

The total costs are estimated at 6.4 billion euros, which the federal government will bear. The money is to be paid out by the pension insurance company by December 15. The special payment is taxable, but exempt from social security contributions. A second heating subsidy for housing benefit recipients should also pass Parliament in the early evening. With the energy price flat rate for pension recipients, it was also decided to relieve employees with low incomes of social security contributions.

For so-called midi jobs, the social contributions have so far increased slowly to the full amount with a monthly income between 520 and 1600 euros. This sliding zone for employment subject to social security contributions in the transitional area will be increased to 2000 euros in 2023. Employees are to be relieved of around 1.3 billion euros as a result. Pension, health, long-term care and unemployment insurance lose social contributions of the same amount.

The second heating subsidy is intended to bridge the period until the planned housing benefit reform comes into force on January 1, 2023. The subsidy should be 415 euros for a single person and 540 euros for two people. For each additional household member, the subsidy increases by 100 euros.

Students and trainees who receive Bafög or other aid should receive 345 euros as a heating subsidy. If possible, the money should be paid out later this year. The federal government wants to bear the expenditure of around 550 million euros. The grants to those drawing pensions and housing benefits are part of the third relief package from the traffic light coalition.