A benefits card is a modern form of employee perk that's specifically designed to provide non-cash benefits to employees in a simple and legally compliant way. In practice, it's typically a reloadable prepaid card (usually available as a physical card, and increasingly offered in digital or virtual formats) that your employer loads with a specific amount each month. The main purpose of these cards is to take advantage of tax benefits for non-cash compensation, particularly the monthly tax-free allowance of 50 euros according to Section 8(2) Sentence 11 of the German Income Tax Act (as of April 2025). With this card, you can use the loaded balance to purchase goods or services from a designated network of participating merchants. Crucially, these cards are designed to meet strict legal requirements for non-cash benefits, especially the criteria set by the Payment Services Supervision Act (ZAG), which typically means they're restricted to specific merchants or product categories and cannot be used for cash withdrawals.
The use of a benefits card offers numerous advantages for both parties - employees and employers. For you as an employee, the card means:
- Maximum Flexibility:Unlike restricted vouchers (e.g., those valid only at a specific supermarket), this card allows you to shop and pay for services at a wide variety of partner locations, depending on the provider's network.
- Easy to use:The card works at the checkout just like a regular debit card. You can easily check your balance and transactions through the app or online portal.
- Full Net Advantage:The credit up to the 50 Euro limit will be received by you without any deductions for taxes or social security contributions.
- High transparency:You always have a clear overview of your available budget.
For employers, the benefits include:
- Legal certaintyThe systems are designed to comply with the complex tax regulations regarding the €50 benefit-in-kind allowance (particularly ZAG compliance).
- Simplified Administration:Instead of purchasing and distributing individual vouchers monthly, management and top-ups are handled centrally through a single platform.
- Enhanced Attractiveness:A modern employee benefits card is a popular and valued tool for showing appreciation to employees and strengthening their loyalty to the company.
- Motivation:A consistent, tangible benefit that increases employee satisfaction.
The HelloBonnie SmartCard exemplifies excellence in modern employee benefits cards. Designed to optimize the tax-free €50 benefit allowance while offering maximum flexibility, this innovative solution transforms how employees can use their benefits. Through its connection to a vast and continuously expanding network of partner businesses across various sectors (retail, dining, mobility, leisure, health, and more), the HelloBonnie SmartCard enables you to utilize your benefits budget precisely according to your personal needs and preferences. Paired with the intuitive HelloBonnie App, you maintain complete control and transparency over your balance and the diverse redemption options available to you. Benefit cards like this one are revolutionizing traditional employee benefits, turning them into highly personalized, user-friendly, and effective perks that add genuine value to everyday life.