Measures before the end of 2023 - For employers

Tax and contribution-free benefits for employees (per employee p.a.)

• Company events (e.g. Christmas party) €365;
• Benefits in kind (e.g. Christmas gift) €186;
• Climate Ticket: Since 01/07/2022, the complete or partial assumption of weekly, monthly, or annual tickets for public transport has been possible tax-free. This also includes the Climate Ticket.;
• Voluntary social benefits for the works council fund, and for the remediation of disaster damage;
• Free or subsidised use of facilities and amenities provided by the employer for all or certain groups of employees (e.g. kindergartens, sports facilities or company libraries, but not a discounted gym or parking spaces);
• Future provision (e.g. life and survivorship insurance, health insurance, shares in pension investment funds or pension fund contributions) up to €300;
• Free or subsidised meals and drinks at work of up to €8 per working day.;
• Grant for childcare costs 1,000 € (per child) - starting in 2024 even 2,000 €;
• Employee discounts on the company’s products that do not exceed 20 % do not constitute a benefit in kind. This 20 % represents an exemption limit; in other words, if a higher discount is granted, this generally constitutes a benefit arising from the employment relationship, of which only €1,000 (exemption allowance) is tax-free over the entire calendar year;
• Employee participation schemes: for the benefit from the free or discounted allocation of company shares to employees, there is an annual tax-free allowance per employee of €3,000. Since 1 January 2018, there has also been the option of free or discounted allocation of shares up to a value of €4,500 per year in a form that is exempt from tax and social security contributions. The prerequisite is that an employee participation foundation manages the shares in trust until the end of the employment relationship.;
• Employee profit-sharing: A profit-sharing payment of up to €3,000 per calendar year can be paid tax-free (but not social security-free);
• Tax-free cost-of-living bonus: In 2023, a cost-of-living bonus of up to €3,000 can still be paid, for which no income tax, social security contributions, or employer contributions are due. Payments from the previously mentioned employee profit-sharing scheme are counted towards the €3,000 limit, so there is some competition here.

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