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What is the employee savings allowance?

The employee savings allowance is a cash allowance granted by the state to promote investments for capital formation among employees. It is a state premium for capital-forming benefits.

Capital-forming benefits (Vermögenswirksame Leistungen, VL) are cash benefits that your employer invests for you, e.g. on the basis of a collective agreement, a company agreement or an employment contract

The prerequisite for the state allowance is that your employer - and not you yourself - pays the capital-forming benefits into an investment account set up by you.

The employee savings allowance amounts to

  • Building savings: 9% of the annual VL (maximum 42.30 euros)
  • Participation savings: 20 % of the annual VL (maximum 80 euros)

If you conclude two eligible contracts (e.g. a home savings contract and a securities savings plan), the allowances are granted side by side.


You can claim the employee savings allowance even if your employer does not pay capital-forming benefits. In this case, ask your employer to deduct the deposit to your investment account from your salary.


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