What if your next pay rise didn’t run through gross salary?

• Benefit in kind / gym membershipSec. 8 (2) sent. 11 EStG i Benefit in kind / gym membership Sec. 8 (2) sent. 11 EStG As a benefit in kind — for example a gym membership — up to €50 per month free of tax and social security. Note: this is a threshold, not an allowance. If exceeded, the entire amount becomes taxable.
• Job ticket / public transportSec. 3 no. 15 EStG i Job ticket / public transport Sec. 3 no. 15 EStG Subsidies for public transport tickets (Deutschlandticket / job ticket) are fully exempt from tax and social security. They are, however, offset against the commuter allowance.
• Company bikeSec. 3 no. 37 EStG i Company bike Sec. 3 no. 37 EStG If the (e-)bike is provided on top of salary, private use is completely free of tax and social security. With salary conversion, only 0.25 percent of the gross list price counts as a taxable benefit.
• Meal allowanceSec. 8 (2), Sec. 9 (4a) EStG i Meal allowance Sec. 8 (2), Sec. 9 (4a) EStG In 2026, meal subsidies are privileged up to €7.67 per working day (€4.57 benefit value plus €3.10 top-up) — up to €115.05 per month. For off-site work, additional per-diem allowances of €14 or €28 are tax-free.
• Internet allowanceSec. 40 (2) sent. 1 no. 5 EStG i Internet allowance Sec. 40 (2) sent. 1 no. 5 EStG Employers can subsidise private internet costs up to €50 per month at a flat 25 percent tax rate. For the employee, the subsidy is then free of tax and social security.
• Childcare subsidySec. 3 no. 33 EStG i Childcare subsidy Sec. 3 no. 33 EStG Subsidies for the care of pre-school children (nursery / kindergarten) are exempt from tax and social security without limit. Condition: they must be paid on top of the salary already owed.
• Recreation allowanceSec. 40 (2) sent. 1 no. 3 EStG i Recreation allowance Sec. 40 (2) sent. 1 no. 3 EStG Recreation allowances of up to €156 per year (employee), €104 (spouse) and €52 per child can be taxed by the employer at a flat 25 percent. They are then free of social security contributions.
• Company pension (bAV)Sec. 3 no. 63 EStG i Company pension (bAV) Sec. 3 no. 63 EStG In 2026, company pension contributions are tax-free up to 8 percent of the contribution ceiling — €8,112 per year or €676 per month. Of this, 4 percent — €4,056 per year or €338 per month — is also free of social security.
• Company health insuranceSec. 8 (2) sent. 11, Sec. 37b EStG i Company health insurance Sec. 8 (2) sent. 11, Sec. 37b EStG Employer-funded supplementary health insurance counts as a benefit in kind and is free of tax and social security within the €50 threshold. Alternatively, flat-rate taxation under Sec. 37b EStG is possible.

Important: for most subsidies, tax exemption only applies if they are paid in addition to the salary already owed (Sec. 8 (4) German Income Tax Act) — not for salary conversion. Benefit values and contribution ceilings are adjusted annually (figures as of 2026).