Please take the following note into account: Employer subsidies to employees for vacation care paid for school-age children constitute a non-cash benefit and are therefore taken into account both in the determination of your social security contributions and the wage tax calculation in the wage/salary statement.

Tax liability
The allowance granted increases your taxable gross pay and, if the monthly exemption limit (currently €44) is exceeded, is fully included in the tax calculation depending on your individual income tax bracket.

Compulsory social insurance
Your gross amount subject to social insurance contributions is increased by the allowance granted. The respective employer and employee contributions are then calculated from this basis.

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If you have questions, please do not hesitate to contact us. E-mail

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