Capital-forming benefits (VL)

Vermögenswirksame Leistungen (VL or VwL, capital-forming benefits) are additional payments from your employer in Germany that go directly into a savings contract.

How it works:

• Your employer pays up to €40/month extra (depending on the collective agreement/employment contract)
• The money goes into a VL contract: home savings contract, bank savings plan or ETF savings plan
• The state adds an employee savings allowance (Arbeitnehmersparzulage) on top (20% on max. €400/year for fund savings = €80 for free!)

Who gets VL? Almost all employees – trainees, civil servants, soldiers. You'll find your entitlement in the collective agreement, or simply ask your HR department.

Tip for career starters: invest VL in an ETF savings plan (e.g. via finvesto or Oskar). That turns free money into long-term wealth building.