News Question of the week: What are capital-related benefits?
Friday, 25.08.17 , written by Juliane Wellisch Even people on lower incomes can build a solid financial cushion by making smaller monthly payments. Employees and civil servants are sometimes supported by the employer or employer through capital-efficient benefits. Partly the state even increases the
This is how asset-based services work
- Employees and civil servants can receive from their employer up to € 480 per year in capital contributions.
- In addition, there is the possibility for people with low and middle income to claim a bonus from the state.
- In view of the low interest rates for subsidized savings contracts, it is advisable to find out about pension options before signing the contract.
What are capital-efficient services (VwL or VL)? These are regular additional payments from the employer , which can be invested in a bank or fund savings plan or home savings contract or can be used to pay off mortgage financing. The employer thus directly supports the asset retirement or debt reduction of his employee. The monthly support is up to 40 euros per month .
The money saved is available to the employee after seven years at the earliest – so savers need to be patient. However, with maximum payment after the minimum term 3,360 euros saved plus interest and, where appropriate, state support. If you want to have as much money as possible in the pot at the end, you should deal with the conditions of various forms of savings in advance, for example with the help of an expert.
Employee Savings: State support for low-paid workers
People with a low income profit particularly from the capital-efficient benefits. Because they receive up to a taxable annual income of 17,900 euros (35,800 euros for spouses and life partners) in addition to the so-called worker savings for housing purposes. This can be, for example, a home savings contract.
Those who prefer to invest the money in a bank or fund savings plan are entitled to additional government support up to an income limit of 20,000 euros or 40,000 euros . The employee savings bonus amounts to up to € 43 per year for singles who invest in a home savings contract, and up to € 80 for savings plans .
But beware: If the employer does not pay the maximum amount of 480 euros of capital contributions per year, the entitlement to the additional premiums is reduced. Savers can, however, increase the amount independently, in order to secure in this way the full support from the state.
Double benefit with two contracts
The employee savings allowance can be claimed simultaneously for two contracts. This means that singles can receive up to a total of € 123 annually for a savings contract and a home savings contract from the state.
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Housing Premium: Alternative support for home ownership
People whose taxable income is just above the ceiling for the employee savings bonus may be eligible for the Housing Plan Premium. To do this, they must invest the capital-building benefits in a home savings contract or use them to acquire cooperative shares or savings agreements that also serve to acquire residential property.
The income limit for the housing premium is € 25,600 (€ 51,200 for co-disputed spouses / partners) . If at least 50 euros per year are paid, savers receive 8.8 percent of the expenses as a premium, but a maximum of 45.06 euros per year (90.11 euros) .
Are duties payable on capital goods?
Asset-based services are neither tax-free nor tax-free . This means that the employer pays the full promised amount into the contract. However, the benefits are actually factored into the gross income, so that the amount of the levies increases accordingly. Depending on factors such as the personal tax rate and the tax code, this reduces the net income .
For example, with an income of 3,000 euros per month, around 615 euros will be payable monthly . If the employer pays additional capital contributions of 40 euros, the taxes rise to 624 euros .
However, there is the possibility of investing the capital gains into a company pension plan. Then in the deposit phase no taxes and social security contributions are due, but in the pension phase .
Does the employer have to pay capital contributions?
Asset-based services are generally voluntary support by the employer . Therefore, workers can not insist on the benefits. However, some collective agreements and employment contracts provide VwL in a certain amount. In particular, workers who are entitled to the employee savings bonus or the housing premium may also ask their boss to pay VwL instead of a salary increase, as they may benefit more from the allowances .
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