Capital benefits can be received by employees, provided that they comply with the legal regulations. There is sometimes an obligation for employers to pay this, but this is not represented equally in every industry. In addition, asset-generating benefits are also subsidized by the state in certain cases, which significantly increases the incentive for employees. In which cases the highest funding rate is possible, you will find out in the course of the contribution. In addition, we have already explained the regulations for employees at home office activities abroad, if the topic is also relevant. In the following, the general statutory requirements for the asset-effective services are set out and the different types of support and levels of support are described.

Capital benefits are benefits paid by the employer to his employees. From time to time, there are state subsidies that increase the payments of the employer. In addition, in the case of asset benefits, a distinction is made between deductions from wages and additional payments to wages. The discretion as to how high the respective asset-generating services of the employer should be, has to be responsible for the employer himself. On the obligation or the voluntary nature of payments, more details will be given later.

Depending on the objective or desire of the employee, the employee can invest the grants received in certain forms of investment. The investment period is six to seven years, whereby in principle no more deposits are made in the last year, but this is only mandatory as an additional investment period. However, in order to receive these payments, workers must not exceed certain income limits. These limits are considered within the general conditions.

Now it is necessary to distinguish between the different types of asset-generating services. Only the possibilities of employees to provide the benefits differ. Here, there are, for example, the options to invest in bank savings plans, building savings contracts, company pensions, investment funds or life insurance. In addition, the employee can also increase these benefits from the private account if he wants to save more or to invest on the offered conditions. Logically, this decision must be made independently by each person, as there is no obligation to make a private additional payment to the benefits of the employer.

Since 2017, the regulation on mandatory certification of the services provided has been particularly helpful. Since that year, the administrator of the asset-generating services has to transmit it to the responsible tax office via digital data transmission. If you need support in this context or otherwise in an objection procedure against the tax office, in a lawsuit against the tax office or in an upcoming audit of the tax office, you can contact us.

Now to the different types of investment for employees. Initially, a fund plan is considered a very attractive form of investment. This is because there is a chance of the highest return among the investment forms available and you get the highest state support. However, it is also necessary to take into account the increased risk caused by price fluctuations. Furthermore, the money can be invested in a building savings contract, the advantage is that the person is protected against rising interest rates on real estate loans. However, you also get hardly any interest on your saved and a relatively low state support. But it is possible to receive a housing premium.

Finally, we consider a very safe form of investment, namely the bank savings plan. Nevertheless, it should be noted that there are only very low interest rates and no state support. On the other hand, even that does not meet the conditions for state support can be a reason for this choice.

§ 1 VermBG sets out the requirements for the promotion of asset-generating services. It is possible for employees, employees and employees in vocational training to receive support. Furthermore, civil servants, judges and soldiers belong to the eligible group.

However, for a promotion by the employer and the state, the regulations to be found in the employment contract or collective agreement are always decisive.

In order to clarify the question of whether the employer is obliged to pay the employee asset-generating benefits, various regulations must be considered.

In particular, the existence of collective agreements, agreements within a company and other agreements play a central role. If the employer’s assets are not linked to it, these payments are made voluntarily to his employees. As well as the decision on the functioning of the payment lies entirely with the employer, the employer must decide between a deduction from the employee's wage or an additional benefit to the wage.

Now it is important to note that asset-generating benefits are paid by the employer at most up to 40 € monthly. In addition, if the employee meets the criteria, there may be additional support from the state.

However, the promotion of asset-generating performance by the state can amount to up to €870 annually. Because there are different limits for different categories and forms of investment. On the one hand, there is the savings form category building savings contract, here a limit up to 470 € applies. Furthermore, there is the savings form category Securities and other investments with a maximum limit of € 400 per year.

Now the employee savings allowance is a form of investment that helps employees save. In addition to the asset-generating benefits, the state pays into the respective investment form selected by the employee. The employer pays a certain amount of money for the employee. It should be noted that the amount depends on the respective type of investment. In addition, a maximum annual amount of 470 € can be paid by the employer. However, not every type of investment is equally supported by the state, for example, the bank savings plan falls out of the grid. If the money flows into a building savings contract, the state supports this with 9% of the amounts paid, but with a maximum of € 42.30. It is the same when investing in a share fund savings plan, with 20% of this being supported by the state. The maximum annual grant amount is thus 80 €. Nevertheless, it is possible to use these two support measures simultaneously.

In order to receive this savings allowance from the state, however, you must attach the VL investment from the provider of your investment type to the income tax return. In addition, various income limits must be adhered to, otherwise the employee savings allowance will not be granted. Employees may earn only 17,900 € for the use of the employee savings allowance in building savings contracts or up to 35,800 € for a combined investment. Assets invested in an equity fund savings plan are subject to the income limits of €20,000 after individual investment and €40,000 after joint investment in accordance with § 13 para. 1 and § 17 para. 7 5. mBG.

Finally, a positive balance sheet can be drawn for asset-generating services. For people with lower incomes, this offers an opportunity to provide for old age or other aperiodic purchases and to supplement them with state subsidies.

Nevertheless, it is especially important for employers to know about the special features of asset-generating services and also to advise employees in the best possible way. In addition, the conditions and effects of the payment of asset-generating services must be considered in advance.