MILAN, Nov 18 (Reuters) – Italy’s second-largest lender UniCredit (CRDI.MI) will give its employees in Germany a bonus of two,500 euros ($2,594) to compensate for rising inflation, a duplicate of an inside memo seen by Reuters and confirmed by a spokesperson confirmed.
Trainees will obtain a bonus of as much as 1,250 euros, relying on the time they labored for the financial institution, the memo confirmed.
The bonuses are exempt from tax in addition to social safety fees and shall be paid out in December, it added.
“You … expertise it on the grocery store checkout or the petrol station: inflation is making our lives dearer,” the memo stated, including the bonus’s objective was to “make a contribution” with out aiming to cowl further prices.
Underneath a 3rd bundle of inflation reduction measures costing in combination greater than 65 billion euros, Germany introduced in September that employers will pay out tax-free bonuses to employees of as much as 3,000 euros every till the tip of 2024.
Round half of German firms are anticipated to pay out bonuses beneath the scheme, a survey of 142 corporations by consultancy WTW confirmed this week.
Italy final week permitted the same measure as a part of a 9 billion euro support bundle which can come into pressure within the subsequent few days. Rome will forego taxation on fringe advantages paid to workers this yr for as much as 3,000 euros per employee.
UniCredit had roughly 14,000 workers in Germany as of end-September, its web site confirmed, making it its second greatest market after Italy the place it employs almost 35,000 individuals.($1 = 0.9637 euros)
Reporting by Gianluca Semeraro; Further reporting by Rachel Extra in Berlin; Writing by Valentina Za; Modifying by Agnieszka Flak
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