Company events are organized events held by a company in which mainly employees participate. Typical examples include summer parties, Christmas parties, company outings, and team events. They are not only for entertainment, but also serve specific purposes: strengthening team cohesion, promoting identification with the company, and improving internal communication. In times of increasing remote and hybrid working models, such shared experiences are becoming even more important as they promote personal interaction and prevent isolation.
Employers benefit in several ways: they create a more positive working atmosphere, strengthen employee loyalty to the company, and signal appreciation. For employees, such events are a welcome opportunity to get to know colleagues in an informal setting and develop a sense of togetherness.
Company events are also attractively regulated from a tax perspective. According to Section 19 (1) No. 1a of the German Income Tax Act (EStG), up to two events per year can remain tax-free with an allowance of 110 euros per employee per event, including the costs of travel, meals, admission, supporting program, etc. If this amount is exceeded, only the excess portion is taxable. It is important that the event is open to all employees and that its corporate nature remains recognizable.
In practice, company events are easy to plan, whether internally or with external service providers. Depending on the budget and size of the company, they can range from small get-togethers in the office to elaborately organized events with a program and location. A successfully executed event often leaves a lasting positive impression and strengthens the emotional bond with the company.
In summary, company events offer:
- For employees: Strengthening team spirit, informal encounters, identification with the company, shared positive experiences
- For employers: Promotion of corporate culture, increase in employee satisfaction, possibility of tax advantages, positive effect on motivation and retention
Overall, company events are a contemporary, low-threshold means of employee retention that has both an economic and emotional impact.