HR Glossary
HR Glossary
Benefit-in-kind exemption (€ 50)
The monthly € 50 benefit-in-kind exemption lets German employers grant tax-free benefits to employees.
The € 50 benefit-in-kind exemption (raised from € 44 in 2022) allows German employers to provide non-cash benefits free of income tax and social security contributions – a key lever for modern benefits strategies.
Legal basis
§ 8 (2) sentence 11 EStG. It is an exemption limit, not an allowance: exceed it and the entire amount becomes taxable.
Eligible benefits
- Gift cards (PSD2/ZAG-compliant)
- Fuel and meal vouchers
- Equipment provided for use (chair, monitor)
- Fitness & wellness offers
Home office application
Providing ergonomic equipment as a benefit-in-kind unlocks significant tax savings vs. cash home office allowance. See comparison.
Compliance
Correct payroll reporting, ZAG-compliant vouchers, full documentation. Platforms like onyo handle this end-to-end.