Berlin allowance
The Berlin allowance (also colloquially known as the “ tremor premium ”) was a state grant for all employees in West Berlin at the time of the division of Germany .
It was paid to compensate for the longer journeys into the “surrounding area” - i.e. the outskirts of the city - and the higher cost of living due to longer transport routes for goods, and was intended in particular to counteract the labor shortage, especially since many people viewed Berlin's isolation from the GDR as a disadvantage has been. The Berlin allowance was intended to counteract migration to West Germany and also to attract young people to the city.
The Berlin allowance was eight percent of the gross salary. It was tax-free. The allowance was calculated and paid out in the employer's payroll accounting. The gross wage (BL) was rounded up so that it was divisible by ten.
- Example: BL = 1742.83 DM, rounded up to 1750.00 DM = assessment basis for the Berlin allowance.
The Berlin allowance was introduced in 1971 by the Berlin Promotion Act. It expired on December 31, 1994. Between 1990 and 1994 the allowance was reduced in several stages.
The cost of the allowance amounted to the equivalent of around 1.4 billion euros annually.
See also
Web links
- Shiver premiums and emergency sacrifices at berliner-zeitung.de
- Act to promote the Berlin economy (PDF; 158 kB) at gesetze-im-internet.de