Employer benefits and allowances

Employer contributions (Arbeitgeberzuschüsse) are additional benefits on top of your salary – some are mandatory, others voluntary.

MANDATORY contributions (Germany):

1. Company pension contribution (since 2022, §1a para. 1a BetrAVG):

• 15% of the converted salary in salary conversion
• Applies to all contracts (since 2022)
• Only on amounts up to €322/month

VOLUNTARY contributions (often tax-advantaged):

2. Capital-forming benefits (VL):

• Up to €40/month – no legal entitlement, but often in collective agreements
• In addition: employee savings allowance from the state (20% on max. €400/year)

3. Job ticket (§3 No. 15 EStG):

• Completely tax-free (on top of salary)
• 25% employer discount on the Deutschlandticket

4. Childcare allowance (§3 No. 33 EStG):

• For children not yet of school age
• Free of tax and social security WITHOUT an upper limit!
• The employer could theoretically cover the entire daycare costs

5. Meal allowance:

• Benefit-in-kind value: €4.40/meal + employer contribution of up to €3.10 tax-free
• Total: up to €7.50/day possible

6. Benefits in kind:

• Up to €50/month tax-free (vouchers, gym, fuel card, etc.)
• Possible IN ADDITION to the job ticket