The board of Deutsche Bank has decided to pay full-time employees in Germany who are paid according to the collective agreement 1,500 euros as compensation for the sharply rising prices.

Discussions are currently taking place between the employee representatives and Deutsche Bank on a corresponding company agreement.

Hanno Mussler

Editor in Business.

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This is the prerequisite for the payment of such a bonus and regulates the group of beneficiaries, wrote Deutsche Bank in an employee information sheet available to the FAZ.

Accordingly, Deutsche Bank plans to make an initial payment of 1,500 euros with the December salary in December 2022.

The Executive Board will “decide in due course” on a second payment in 2023.

Deutsche Bank is thus taking advantage of a federal government regulation that allows employers to give employees a tax- and duty-free inflation bonus of up to EUR 3,000 up to December 31, 2024.

On Tuesday, the board of directors of Landesbank Baden-Württemberg decided on an inflation bonus for all of its employees in Germany totaling EUR 2,000.

The bonus will be paid out in two steps, an initial amount of 1,200 euros is to be transferred by December 1st, the remaining 800 euros will follow in February next year.

Apprentices, part-time employees and employees on parental leave also benefit fully from the special payment.

On the other hand, full-time employees in the branches of Postbank and Deutsche Bank in particular benefit from the extra payment from Deutsche Bank, less so the employees in the head office or in investment banking, who tend to be paid higher non-tariff payments.

LBBW and Deutsche Bank join a number of banks, industrial companies such as Airbus, BASF, Bayer and Covestro and service providers such as Fresenius and Sixt with their extra payments, which are intended to help cushion the higher costs of energy and food in particular.

The conspicuous willingness to spend, especially in the lending industry, may come as a surprise at first glance, since the financial sector is a shrinking industry that has not earned its capital costs for years and could now be faced with loan defaults in view of the looming recession.

Banks are looking for young employees

But many banks have since shrunk to a healthy size and are now desperately looking for employees, especially young ones.

The rise in interest rates this year has enabled many financial institutions to use the low-interest deposits of their customers to grant loans with significantly higher interest rates and thus to achieve interest surpluses - the most important source of income for many banks and savings banks.

Larger loan defaults in a recession usually only appear after months at financial service providers.

It usually takes a while before the first companies become insolvent because of their high debts or lack of liquidity and are no longer able to pay interest and principal.

The end of the long phase of low interest rates allows many credit institutions to do good business this year, so that they can also share their profits with their employees.

So far, Targobank, which belongs to French Crédit Mutuel, has been the most generous of the German banks.

She has announced that she will send her full-time employees a bonus of 3,000 euros, half of which will be paid out in December 2022 and the other half in December 2023.

Apprentices and dual students each receive 1,000 euros on the same dates.

Those who work part-time at Targobank receive a pro rata payment.

Reisebank, a subsidiary of the central cooperative institute DZ Bank, is paying full-time employees a subsidy of 1,800 euros this December.

Apprentices receive 900 euros.

The regulation is part of a collective agreement.

According to their own statements, the majority of employees are covered by the collective bargaining agreement.

ING Deutschland, also known as ING Diba, was the first German bank to offer its full-time employees an inflation premium of 1,500 euros.

Part-time employees, trainees and participants in dual studies receive at least 1,000 euros.

The subsidy will be paid out with the December salary and will also go to employees who work outside of collective bargaining agreements.

DKB, Bayern LB's direct bank, has announced an inflation bonus of EUR 1,500.

The special bonus, which all full-time and part-time employees at DKB receive in full regardless of their degree of employment, is paid out in January.

The private bank Hauck & Aufhäuser, which belongs to the Chinese investment company Fosun, paid 1,500 euros in December to compensate for inflation.

Part-time employees receive the bonus pro rata.

Working students get 300 euros.

The cooperative Munich mortgage bank, which has just bought the mortgage bank from MM Warburg & Co, pays its full-time employees 1,000 euros extra on top of their December salary - regardless of whether they are employed under a collective agreement or not.

Part-time employees receive a proportion of the bonus.

Apprentices and working students receive 500 euros.

Commerzbank pays a maximum bonus of 2,000 euros in December.

Local employees and junior staff receive 1,000 euros.

For non-tariff employees and employees of international subsidiaries, it is 500 euros.

Many employees in non-tariff sectors receive EUR 2,000.