Germany Employment Benefits Guide (Sachbezüge & Benefits)

A guide to tax-free and tax-advantaged employee benefits in Germany. The Sachbezug (fringe benefit) allowance is €50/month per employee — covers gift vouchers, phone, and internet tax-free. The Inflationsausgleichsprämie provides up to €3,000 tax-free per employee (2024–26). Job bikes are taxed at 0.25% of list price monthly, Kantinenzuschuss is up to €600/year free, and employee stock options are exempt up to €1,440/year under §3 Nr. 39 EStG.

German employers can offer a variety of tax-advantaged benefits (Sachbezüge) to attract and retain talent. These benefits are either fully tax-free or taxed at a reduced rate compared to cash salary. Properly structured benefits packages can save both employer and employee significant tax and social security contributions. For related reading, see our Payroll Tax Guide → and Employee Stock Options Guide →.

Tax-Free Benefits (Steuerfreie Sachbezüge)

Sachbezug €50/month: Under §8(2) EStG, non-cash benefits up to €50 per month per employee are tax- and social-security-free. This covers gift vouchers, mobile phone/data plans, internet access, gym memberships, and other non-cash fringe benefits. The €50 limit is a monthly allowance — unused months cannot be rolled over.
Inflationsausgleichsprämie (€3,000): Introduced for 2024–2026, employers can pay up to €3,000 per employee tax-free (and social-security-free) as an inflation compensation bonus. This must be in addition to regular salary (not replacing existing entitlements). The full €3,000 can be paid in instalments.
Kantinenzuschuss (€600/year): Employer subsidies for employee canteen meals (Kantine) are tax-free up to €600 per year. This covers subsidised meals in company cafeterias or meal vouchers for restaurants. Must be non-cash (food/meal provision, not cash payment).
Employee stock options (€1,440/year): Under §3 Nr. 39 EStG, discounts on employee share purchases (Belegschaftsrabatte) are tax-free up to €1,440 per calendar year. This applies to shares in the employer company or a group company.

Tax-Advantaged Benefits and Allowances

Job bike (Dienstfahrrad): Employer-provided bicycles (including e-bikes up to 25 km/h) are taxed at 0.25% of the list price per month as a taxable benefit in kind. Alternatively, the employer can use the €50 Sachbezug to cover the bike benefit tax-free. Bike leasing models (Entgeltumwandlung) are also popular — the employee trades gross salary for the bike, saving tax and social security.
Commuting allowance (Entfernungspauschale): Not an employer benefit but a deductible expense (Werbungskosten) on your tax return: €0.30 per kilometre for the first 20 km, €0.38 from the 21st km. Employer may also provide tax-free commuting subsidies (Fahrkostenzuschuss) up to these amounts.
Childcare benefits: Employers can provide kindergarten (Kita) subsidies or directly operate childcare facilities. Employer contributions to childcare costs are tax-free if paid directly to the childcare provider (not as cash to the employee).
Health prevention (Betriebliches Gesundheitsmanagement): Up to €600 per year per employee for health promotion measures (gym, fitness classes, health screenings) is tax-free under §3 Nr. 34 EStG, provided the measures meet the Sozialgesetzbuch V preventative health criteria.