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READER QUESTIONS

Reader question: Why haven’t I received my €300 payment yet in Germany?

Many working people in Germany will have received their energy relief payment by now. But if you haven’t got yours yet, there’s no need to worry, here are some reasons why that could be and what you can do.

Newly designed one hundred and two hundred euro notes presented at the Bundesbank in 2019.
Newly designed one hundred and two hundred euro notes presented at the Bundesbank in 2019. picture alliance/dpa | Boris Roessler

The €300 payment – known as the Energiepreispauschale or EPP – is one of the German coalition government’s relief measures intended to help people with rising energy costs. It goes out to everyone who lives and works in Germany, including those in part-time and temporary employment, trainees and students in paid internships as well as freelancers.

READ ALSO: What you need to know about Germany’s €300 energy relief payout

Those who have already received the payment as part of their September pay packet will have had an item on their pay slip marked as sonstiger Bezug (“other remuneration”) or “E” for Einmalbezug (“one-time payment“).

The EPP is subject to payroll tax, so only those who earn below the basic tax-free allowance (that means they don’t earn enough to pay any tax) will benefit from the full amount.

According to the Ministry of Finance, employees will receive on average €193 from the €300 allowance.

However, if the EPP didn‘t appear on your pay slip in September, here are a couple of reasons why that could be:

You have a mini-job

Mini-jobbers need to make clear to their employers that their mini-job is their main means of income, as often a mini-job is carried out alongside another job. If you haven’t received your €300 payment yet it’s best to discuss this with your employer and to confirm that it is your main job in writing.

A waiter carries a tray with used glasses and empty bottles. Photo: picture alliance/dpa | Jonas Walzberg

Your employer is not required to make the payment

There are some cases where the flat-rate energy allowance is not paid out by the employer at all. The Federal Ministry of Finance mentions the following exceptions, for example: if the employer is not required to file income tax returns, or the employee is employed on a short-term basis or is a temporary worker in agriculture and forestry.

In these cases, you have to file an income tax return for 2022 and claim the EPP there.

The payment may come later

The Ministry of Finance says that, if an employer misses the payment “for organisational or accounting reasons,” for example if you started your job in August and the payroll department missed you out, then the payment can be made later.

At the latest, however, it should come when the employer sends the Lohnsteuerbescheinigung (wage tax statement) – which is usually sent in December. In this case, too, it’s advisable to clarify with your employer or the payroll department why you haven’t received the payment yet. 

You work for a small company

Sometimes employers are not obliged to pay out the energy flat rate in September, but can still do so in October. This is the case if the employer submits its payroll tax returns to the tax office on a quarterly rather than monthly. Smaller employers, for example, who pay less than €5,000 in advance wage tax per year, only have to submit the advance wage tax payment once a quarter. This is not due until October 10th, so the employees concerned will not receive the €300 lump sum until October.

What other support will people get from the German government?

On Tuesday, Germany’s 16 state leaders are meeting with Chancellor Olaf Scholz to discuss which measures the €200 billion package announced last week should include.

READ ALSO: Germany to thrash out details of €200 billion energy support package

It’s expected that a Gaspreisdeckel – or a cap on the price of gas households would pay this winter – will soon come into force when the details are worked out, while plans for a cheap follow-up to the popular €9 ticket will also be presented later this month.

Benefit payment recipients will receive a one-off top-up to their existing benefit payments to pay for the higher cost of heating and pensioners will receive a €300 payment on December 1st. They do not have to apply for this, it’ll simply be added to the payments they receive from their pension insurance funds.

READ ALSO: KEY POINTS: Everything Germany is doing to help relieve rising energy costs

A €200 one-off payment is also planned for students, although each federal state may end up paying the amount slightly differently in a process that’s still being defined.

From next year, parents will see an increase in the amount of child benefit (Kindergeld) they receive, up to €237 per month, per child, up to and including the third child.

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For members

BANKING

Reader question: Is it safe to give out your IBAN in Germany?

Even in privacy-obsessed Germany, you'll often be asked to provide your bank details - or IBAN - when purchasing products or setting up contracts. Is it always safe to do so - or is there a chance of fraud?

Reader question: Is it safe to give out your IBAN in Germany?

When it comes to personal data concerns, there’s arguably no nationality who is more keen to keep their private lives private than the Germans. 

This was summed up recently at one cashless business in Berlin, where the owner revealed that people were concerned that paying by card would let the company see into their bank account. 

But in spite of the general suspicion towards digital technologies, there are plenty of situations in Germany where you’re likely to be asked for your International Bank Account Number – or IBAN for short – and are expected to give it willingly.

You may be setting up a new contract for your electricity supply, a new mobile phone or for a rental flat. Or you could be buying something online via a direct debit or hunting for bargains on an online marketplace – in all these cases, giving your IBAN to the seller or company is a must. 

READ ALSO: Why German banks are getting more customer complaints than ever

Though simply jotting down your details is treated as par for the course, are there situations where consumers should be a bit more cautious? 

Here’s an overview of what you should know about the risks of giving out your IBAN and how consumers can best protect themselves against fraud. 

Is giving out my IBAN safe?

According to Matthias Lange, payment methods expert at the German Association of Banks (BVDB), the answer is generally yes – and often there are no ways around it.

“For example, if I want to pay my rent or have my money transferred to my account for a sale via classified ads, I have to give the account details to my landlord or the buyer,” Lange explained on the ING website. “And if I buy something by direct debit, they will also ask for my account number.”

Lange also points out that it’s perfectly normal for companies to include their IBANs on letters and bills they send out, which shows just how relaxed their are about customers having this information. 

What could a fraudster do with my IBAN?

Very little, is the answer – though there are options. 

The most important thing to know, however, is that nobody will be able to access your bank account using the IBAN alone.

In online banking in the EU, two-factor authentication is a minimum. Normally, that means you’ll need a password to access your account, as well an authentication app or a code that’s sent to your mobile phone.

All of this makes it much harder for criminals to access your financial data and make fraudulent transactions.

READ ALSO: How to grow your savings in Germany during high inflation

However, there is one way that fraudsters could try to use your IBAN to steal money from your account: setting up a Lastschriftmandat, or a mandate for a direct debit. This can usually be done by setting up a simple form and sending it off to the bank or company in question.

Even in this situation, however, the problem can be easily resolved. 

Woman paying by card online

A woman checks her card details while completing a purchase online. Photo: picture alliance/dpa/ZHPH Production / Stocksy United | N26 GmbH

“If a fraudster has actually completed a direct debit with your account details, it is possible that the amount will initially be debited from your account, but you will be able to get the money back quickly and easily,” said Lange.

This strategy is also a risky one for any criminal, since the bank will have plenty of information on hand about the person that the money should be transferred to.  

Another old-fashioned option is for someone to intiate a paper translation by forging your signature on a paper transfer form – though this would probably arouse suspicion as this type of transfer is so rarely used today.

Lange also points out that this would involve the criminal supplying their bank details, and that a swift response to the issue would enable any victims to get their money back right away. 

How can I best protect myself from fraud? 

Though giving out your IBAN is generally safe, you should still remain cautious about giving out more details than are necessary – particularly when it comes to things like passports or information that’s included on personal IDs. 

A major red flag for phishing attempts – that is, attempts to steal your data – is if you are approached out of the blue and asked for specific data.

That could be through an unexpected phone call, a link to a website or an email that looks like it comes from an official source, like a credit card company or a bank. In these cases, a good rule of thumb is that no bank will contact you and ask for a tonne of personal details, and especially not passwords or pin numbers. 

In other circumstances, such as applying for a flat, if are asked for extra information – like your passport and bank account statements – make sure that the housing company is reputable before handing all the information over. 

If in doubt, simply get in touch with your bank and ask them for their advice. It’s in their interests to avoid fraudulent transactions on your account, so they will be more than happy to help.

Another important thing to do is to check your bank account regularly for unexpected transactions. You can generally recover any money that’s taken from you fairly easily, but the quicker you respond, the better.

According to Lange, there are key deadlines to know about if you want to challenge or withdraw a direct debit transaction.

READ ALSO: Why it’s almost impossible to find a free bank account in Germany

In normal cases, you have eight weeks to do this – but if the transaction is made via an unauthorised madate, this can be extended by more than a year. 

Though there are no official figures on the level of IBAN fraud carried out in Germany, Lange believes it’s nothing in comparison to the some 11 billion direct debits that are completed in the country each year.

A more common practice is for criminals to buy goods via invoice and get the invoice sent to an unwilling addressee. 

“But that’s more of a problem for the retailer and has nothing to do with fraudulent IBANs,” Lange explained. “And of course, you don’t have to pay the invoice.”

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