Measures before the end of 2024 - 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.;
• Childcare cost subsidy €2,000 (per child);
• 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 scheme: A profit-sharing payment of up to €3,000 per calendar year can be paid out tax-free (but not social security contribution-free) under certain conditions.;
• Tax-free employee bonus (formerly "inflation bonus" in the previous year): up to €3,000 can be paid out to employees in 2024 under certain conditions, for which no income tax, social security contributions or employer levies are incurred. Payments from the aforementioned employee profit-sharing scheme must be taken into account when calculating the €3,000 limit, meaning there is a certain degree of overlap.

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