Employee vouchers are a popular form of benefit that employers use to show appreciation for their staff, recognize outstanding performance, or enhance the overall compensation package. These vouchers or value cards can be redeemed for goods or services at specific participating locations – such as retail stores, restaurants, gas stations, or leisure facilities. Unlike direct cash payments, they are considered a non-cash benefit. This classification as a non-monetary benefit is particularly significant in Germany, as it can offer tax advantages under certain conditions. They serve as a flexible tool to create satisfaction and boost team motivation, as employees often have the freedom to choose how they want to use the voucher value.
The major advantage of employee vouchers lies in their tax treatment. According to Section 8, Paragraph 2, Sentence 11 of the Income Tax Act (EStG), non-cash benefits up to a monthly allowance of currently 50 euros (as of April 2025) can remain completely tax-free and exempt from social security contributions. This means that as an employee, you receive the full value without any deductions, and the employer also saves on payroll taxes for this amount. Important note:
- It must be a genuine non-cash benefit that is granted in addition to the regular salary already owed.
- The vouchers must comply with the criteria set forth in the Payment Services Supervision Act (ZAG) for specific types of gift cards. This means that they can generally only be used to purchase goods or services from a limited network of accepting merchants (e.g., a retail chain, a regional network, or specific product categories) and cannot have a cash withdrawal function.
- The 50 euro limit is a tax-free allowance: If this amount is exceeded by even one cent, the entire value of the non-cash benefit becomes subject to both tax and social security contributions for that month.
There's a wide variety of options available: from traditional paper vouchers and digital codes to reloadable gift cards for specific retailers or shopping centers, as well as modern benefit platforms that manage such non-cash benefits digitally. Popular applications include fuel vouchers, supermarket vouchers, drugstore vouchers, and gift cards for online shops or local businesses.
For employers, employee vouchers offer a cost-efficient way to enhance total compensation and show appreciation. The administration can be handled through specialized providers or benefit platforms like HelloBonnie, which typically ensure easy management and compliance with tax regulations. From your perspective as an employee, a voucher is a tangible benefit that you can directly use for something you enjoy. The value of the benefit increases significantly when there are multiple options to choose from. This is where HelloBonnie excels: With the HelloBonnie Smartcard and its associated platform, you can flexibly use your monthly benefits allowance with a wide variety of partners and for different purposes – entirely according to your preferences. Instead of a single voucher, you get maximum freedom in using your tax-free €50 budget, which makes your employer's appreciation even more evident while minimizing administrative effort.