Deutsche Bank plans 1,500 euro bonus for employees

Frankfurt Deutsche Bank wants to give numerous employees a tax-free bonus in view of the rise in energy and consumer prices. “Until December 2022, employees of Deutsche Bank and its subsidiaries in Germany should receive a tax- and social security-free bonus of 1,500 euros (on a full-time basis) in addition to the wages they already owe,” said a post on the intranet of the bank on Thursday. which is available to the Handelsblatt.

Discussions are currently taking place with the employee representatives and Deutsche Bank on a corresponding company agreement. This is the prerequisite for the payment of such a bonus and will regulate the exact claim and the group of beneficiaries.

On the intranet, Germany’s largest financial institution also held out the prospect of increasing the premium in the coming year. “The bank will monitor further developments closely and will consider paying another tranche of EUR 1,500 in the coming year,” the statement said. “It would make full use of the legally stipulated maximum amount of 3,000 euros.” The board will decide on this in due course.

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Frank Schulze, head of Deutsche Bank’s general works council, welcomed the decision. “For some time now, I have been vehemently advocating the stance to the board of providing financial support to employees across the group for the huge increase in costs,” he said.

“For the non-tariff area, I expect a significant increase in the basic salary budget for 2023, which would then be permanent.” In addition, the works council will work to ensure that the inflation compensation premium is increased to 3,000 euros in the coming year.

Jan Showereck, who heads the banking industry group at the Verdi trade union and also sits on the Deutsche Bank supervisory board, also welcomed the forthcoming inflation compensation payment. “Especially employees with low and middle incomes receive important financial relief in very difficult times,” he said.

Because of the high inflation rates, companies have recently been able to transfer their employees a tax-free bonus of up to 3,000 euros. Several banks such as ING Germany, DKB and Commerzbank have already announced corresponding payments. In other financial institutions, negotiations between employee representatives and management are still ongoing.

Strong Numbers

1.1

billion euro

Deutsche Bank made a profit in the third quarter of 2023 – more than five times as much as in the same period last year.

“We expect that we will see further agreements in the near future,” says Duscheck. That is also urgently needed. “In the banking industry there are not only top earners, but also many employees with low and middle incomes.”

It is now getting tight financially for them, said the trade unionist. “That’s why we continue to demand financial relief for all employees in the banking industry in the form of a tax- and social security-free energy money of 1,500 euros this year and next year.”

Inflation premium: Commerzbank is also considering increasing the premium for 2023

At Commerzbank, employees receive a bonus of between 500 and 2,000 euros in December. As with Deutsche Bank, management has also signaled its willingness to talk to employees in 2023 about a possible increase in payments.

“Of course, we will have to keep an eye on the bank’s earnings situation,” said Sabine Schmittroth, Head of Human Resources at Commerzbank, in a post on the institute’s intranet on Friday. With the premiums in December, Commerzbank used the available budget in such a way that lower wage groups were relieved more.

“Especially employees with low and middle incomes receive important financial relief in very difficult times.” Jan Showereck, Verdi trade union

Employees of the non-tariff service companies ComTS, the call center CDS and the conference hotel Collegium Glashütten should receive 2000 euros. Young professionals and employees of Commerzbank AG in Germany who are paid according to collective bargaining agreements receive EUR 1,000. 500 euros are paid to non-tariff employees in Germany and to employees abroad. Managers of the first and second management level get nothing.

Not just Deutsche Bank: Many financial institutions can afford to pay an inflation premium

Many German financial institutions can currently easily afford to pay a premium, after all, things have been going well in their operative business recently, partly because of the interest rate hikes by the European Central Bank.

Deutsche Bank more than quintupled its profit in the third quarter to 1.1 billion euros. In her quarterly report, however, she struck a more cautious tone when looking to the future. The financial regulator has called on all banks to be careful with loan defaults in view of the looming recession and to maintain high capital and liquidity buffers.

More: Commerzbank employees receive an inflation bonus of up to 2,000 euros

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