Capital-forming benefits as an employer benefit

Unless otherwise agreed, capital-forming benefits are a voluntary payment by the employer. The range for the employer's contribution starts at EUR 6.65 and goes up to a maximum of EUR 40 per month. The contributions are usually paid into a savings contract on a monthly basis. The most common forms of savings are bank savings plans, fund savings plans (including low-cost ETFs), building society savings contracts and building loan repayments. You decide which product and which provider you invest your capital-forming benefits in.

If your taxable income does not exceed 40,000 euros, you can also receive an employee savings allowance from the state. For building society savings, the state pays 9 percent on an annual savings sum of up to 470 euros for single people; for a savings contract in an equity fund or ETF, the amount of the subsidy is 20 percent. The savings plans always run for 7 years. Payments are made for six years and the contract "rests" in the seventh year. You can then have the sum paid out or continue to save into it.

Capital-forming benefits are subject to tax and social security contributions. They are added to your gross salary. Compared to the situation without capital formation benefits, your net salary paid out will therefore be slightly lower (with 40 euros in capital formation benefits per month by less than 10 euros, depending on your salary level and tax class). On the other hand, the amount you pay into your state pension will increase and after seven years you will have a tidy four-figure sum of money at your disposal.

Capital-forming benefits are generally not an obligation on the part of the employer, unless otherwise stipulated in a collective agreement.

To receive the fairerjob@logistics premium seal, employers can select the payment of capital-forming benefits as one of the criteria.