The German news reports that the employer and employee representatives have reached a new collective labour agreement covering metal and electricity industries. I was surprised by on aspect of the agreement:
Hinzu kommen steuerfreie Einmalzahlungen von insgesamt 3000 Euro.
Additionally there are tax-free one-off payments of in total 3000 Euro.
I can see why both parties appreciate the tax-free aspect, but how can they decide that? Normally all income is subject to income tax and only the government could make exceptions. Is the government involved or is there some other way in which an employer can decide that an employee needs to pay no income tax for a particular special payment?