Tax Advantages

Recreation allowance (Erholungsbeihilfe)

The little extra that makes your employees' vacation even more relaxing. Help your team recharge and gain new energy.

Recreation allowance (Erholungsbeihilfe)

Brief Overview

The recovery allowance enables your entire team to recharge outside the office. This subsidy helps finance vacations, wellness activities, or other restorative experiences – showing that you truly care about work-life balance.

156 Euros per employee, 104 Euros per spouse, and 52 Euros per child per year.

Benefits

Benefits for your Company

The recuperation allowance makes a significant contribution to improving employee satisfaction and work performance. In contrast to traditional vacation pay, the recreation allowance can also be taxed at a flat rate up to a certain amount and thus remain non-contributory.

Legal Framework

According to Section 1 (1) sentences 1 and 2 of the German Social Security Remuneration Ordinance (SvEV), recreational allowances are not subject to social security contributions under certain circumstances if they are granted in addition to wages or salary. In addition, a flat-rate wage tax of 25% is possible in accordance with § 40 para. 2 sentence 1 no. 3 EStG if certain conditions are met. A total of 156 euros per year is possible for the employee, 104 euros for their spouse and 52 euros for each child.

What can be funded with the recovery allowance?

The 50 euro non-cash benefit opens up limitless possibilities in all benefit categories. Whether regional shopping, mobility, food, fitness, (mental) health, education, travel or entertainment - with the EUR 50 non-cash benefit, you can create benefits that really inspire and perfectly match the needs of your employees.

Want to use the recreation allowance benefit in your company?

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