A subsidy brings citizens up to 123 euros extra per year. © Guido Schiefer/Imago, Lars Zahner/Zoonar/Imago; Collage: RUHR24
The German state pays various subsidies to its citizens. Since the beginning of 2024, more people than before have been able to apply for one of these.
Dortmund – A grant here, a grant there: The German state supports its citizens in many ways. For example, there is a state subsidy for heating. Grants can be applied for via the tax return, among other things. This also applies in this case.
Money given away: Many citizens are not aware of this subsidy
The subsidy is the employee savings allowance. The German government pays this to people who receive capital-forming benefits. The aim is to help citizens build up assets. A new regulation for all banks in the EU is also intended to ease the burden on customers.
The employee savings allowance is not new. However, since January 1, 2024, it will affect more people. While it was previously aimed at people who earned a maximum of 17,900 or 20,000 euros per year, it now includes higher annual salaries. For individuals, the allowance applies up to a salary of 40,000 euros per year, and for spouses, for example, it is 80,000 euros.
What exactly are capital-forming benefits (VL)?
Capital-forming benefits are a subsidy that employees receive from their employer and the state. They are used to build up assets and must be invested for at least seven years. The capital-forming benefits can be paid into equity fund savings plans, ETF savings plans or bank savings plans, for example.
Source: Financial Flow
State pays subsidy – citizens can expect up to 123 euros per year
But how high is the employee savings allowance actually? As is often the case, the answer in this case is: it depends. The maximum allowance is 123 euros. The sum is made up of two investment options, each of which amounts to a maximum of 80 and 43 euros respectively.
Case A involves an employee savings allowance of up to 80 euros. This is a subsidy of 20 percent up to a maximum of 400 euros per year. The allowance applies when capital-forming benefits are invested in securities or other capital investments via savings contracts.
For couples, up to 246 euros are paid out – application for subsidy via tax return
In case B of the employee savings allowance, nine percent of a maximum of 470 euros per year is subsidized. Rounded up, a maximum of 43 euros is possible in this way. According to the Federal Ministry of Finance, this applies to building savings contracts and for housing-related uses (more financial topics at RUHR24).
For married couples, the amount is doubled, meaning that the maximum grant available is 246 euros. In any case, the employee savings allowance is worthwhile and can be applied for by ticking a box on the tax return.
