Frequently asked questions

• Employees: The employee share of social insurance is currently similar between white-collar employees (Angestellte:r) and blue-collar workers (Arbeiter:innen), but collective agreements, supplements and severance pay (Abfertigung) differ.
• Apprentices: Pay lower social insurance contributions overall, so more of the gross salary remains as net.
• Pensioners: Pension payments can be subject to income tax, but special pension tax credits are applied automatically.

Mainly through tax credits that reduce your income tax directly:

• Family Bonus Plus: EUR 2,000 per child and year until the 18th birthday (roughly EUR 166.67 per month). It can reduce your tax to zero but does not touch social insurance.

• As long as the family allowance is paid, you receive the reduced Family Bonus Plus of EUR 700 per year (about EUR 58.33 per month). Without the allowance there is no family bonus.

• Single earner: Married, in a registered partnership or cohabiting for more than six months with at least one child that receives the family allowance while the partner earns no more than EUR 7,284 per year.
• Single parent: Living for more than six months with at least one child receiving the family allowance, without a partner in the household.

A tax credit per child:

• EUR 2,000 per year until the 18th birthday,
• EUR 700 per year afterwards while the family allowance is paid.

It directly reduces income tax (not social insurance contributions).

• Full bonus: One eligible person uses 100% of the benefit.
• Shared bonus: Two eligible persons split the bonus (typically 50/50). It is taken into account via payroll or through the annual tax return.

Non-cash benefits are benefits in kind from your job that are treated like income.

Examples include subsidised housing, discounted meals, private use of a company phone or laptop, or a company car. They increase the taxable and social-insurance base according to fixed rules.

If you also use a company car privately, a monthly non-cash value is applied:

• 2% of the purchase price (max. EUR 960 per month),
• 1.5% (max. EUR 720 per month) if the car's CO₂ emissions stay below the legal threshold (126 g/km in 2026).
• 0 EUR for electric or hydrogen cars (zero emissions).

With very little private use the benefit can be halved if you can prove it (e.g. with a logbook).

Note: CO₂ limits follow the WLTP testing procedure, the standardised measurement for car emissions.

Usually this refers to the Freibetragsbescheid: the tax office anticipates your deductible expenses (Werbungskosten), special expenses or extraordinary burdens during the year.

Less income tax is withheld each month, so your net pay increases. The amount is based on your most recent tax return.

The Pendlerpauschale (commuter allowance) is a flat tax credit for commuting between home and workplace. There is also the Pendlereuro (see below).

• Small Pendlerpauschale: Public transport is reasonable; starts at 20 km one-way distance with fixed monthly amounts per distance bracket.
• Large Pendlerpauschale: Public transport is unreasonable (e.g. no usable connections); starts at 2 km with higher monthly amounts per distance bracket.
• Pendlereuro: Annual amount equals one-way kilometres × EUR 6 and is deducted directly from the income tax.

Important: No entitlement if you use a company car for the commute. The Pendlerpauschale and Pendlereuro are applied via payroll or through the annual tax return.