By offering a education subsidy or training allowance, you make a targeted investment in your team's professional development while simultaneously enhancing your company's appeal as an employer. Your company covers the costs of your employees' further education and training programs—and these payments are tax-exempt under Section 3 No. 19 of the German Income Tax Act (EStG), provided the courses serve your overriding business interests and improve employability. This approach creates genuine added value, boosts motivation and loyalty, and saves on payroll taxes at the same time.
Benefits for Your Company
Enhanced Expertise
Providing your employees with a education subsidy ensures that you secure specific professional know-how, which can be directly applied to current projects and future innovations. Through individually tailored qualification measures, your company benefits from the latest methods and technologies without lengthy onboarding periods.
Stronger Employer Branding
An active commitment to employee development also strengthens your employer brand. Companies that invest in their teams' skill development are perceived as modern and employee-oriented, making it easier to attract qualified professionals. This improves your recruitment efforts, reduces vacancy periods, and positions you as an attractive employer in the competitive talent market.
Tax Relief
Financially, the education subsidy offers dual benefits: on one hand, you save on wage and social security contributions, as the allowances remain tax-free under Section 3 No. 19 EStG. On the other hand, you can take advantage of government funding programs like the Qualification Opportunities Act, which provides subsidies for course and wage costs, further easing your investment.
Legal Framework
According to Section 3 No. 19 EStG, employer-provided benefits for professional development and training are tax-exempt if:
- The measure serves the overriding business interests of the company, such as acquiring qualifications for new technologies.
- It aims to improve the employability of employees, for instance, through language or IT courses.
- The training is conducted by your company itself or by third parties on its behalf.
Important: The training should not primarily serve as a reward and must exceed 160 hours or be undertaken at least four years after the last vocational qualification if funded under the Qualification Opportunities Act.
What Can Be Financed with the Education Subsidy?
The education subsidy covers a wide range of options—tailored to the needs of your employees and your company:
- Professional courses and certifications (e.g., project management, data protection)
- Language training (from Business English to Chinese)
- Online seminars and e-learning platforms
- In-person workshops at recognized training institutes
- Professional literature and teaching materials
- Trade fairs, conferences, and professional lectures
Thanks to digital processing via the HelloBonnie dashboard, your team can flexibly access all offerings, and you maintain an overview of costs and participation.
How to Implement the Education Subsidy
- Identify Needs: Coordinate with your leadership team to pinpoint key qualification gaps.
- Set Guidelines: Define budget limits, eligible measures, and approval processes.
- Initiate Communication: Inform your team about the objectives, procedures, and tax implications of the allowance.
- Digitize Processing: Set up the training allowance as a benefit through HelloBonnie and automate budget allocations at hellobonnie.de.
- Measure Success: Collect feedback and monitor metrics such as participation rates, qualification levels, and employee satisfaction.
Outlook: Continuing Education as a Strategic Success Factor
In times of skilled labor shortages, targeted continuing education is a necessity, not just a nice-to-have. With the education subsidy, you offer your employees genuine development opportunities, strengthen their loyalty, and secure competitive advantages for your company. Embrace smart benefit solutions now and promote sustainable growth within your organization.
