Capital-forming benefits (vermögenswirksame Leistungen, VL) can be easy to overlook at the start of your career, even though they can add to your savings. Whether the employer contribution and the employee savings bonus (Arbeitnehmer-Sparzulage) suit you depends on the type of investment, your income and your plans. This guide explains the rules and the calculations.
In short: The state savings bonus pays 9 percent on up to €470 a year for building society savings, which is at most €42.30 a year. For securities it pays 20 percent on up to €400 a year, which is at most €80 a year. According to the Sparkasse savings bank, the income limit has applied since 1 January 2024 at €40,000 taxable income for single people (as of 2025).
The most important points at a glance
- Capital-forming benefits are amounts that your employer pays into a savings contract on your behalf, often with its own contribution.
- The state savings bonus applies only up to annual maximums: €470 for building society savings and €400 for securities (as of 2025).
- The bonus depends on income limits under the Capital Formation Act (Vermögensbildungsgesetz, VermBG). For single people, the limit is €40,000 taxable income according to the Sparkasse (as of 2025).
- Savings contracts have lock-in periods, so the money is not freely available until they end.
- The type of investment determines risk and return. Building society savings and securities differ significantly.
What are capital-forming benefits?
Capital-forming benefits are parts of your salary that your employer pays directly into a savings contract. Unlike ordinary salary, they are tied to building up assets. The rules are set out in the Capital Formation Act (Vermögensbildungsgesetz, VermBG), which you can read online.
Often the employer pays a fixed monthly amount. Whether this is possible, and how much, is set by your employment contract or a collective agreement. Ask HR whether capital-forming benefits are offered and which types of investment you can choose from.
How does the state savings bonus work?
The employee savings bonus is a state subsidy paid on your savings. It depends on the type of investment and your income, not on the employer contribution. The table shows the figures as of the Sparkasse guide.
| Type of investment | Savings bonus | Maximum savings per year | Maximum bonus per year |
|---|---|---|---|
| Building society savings (housing) | 9 percent | €470 | €42.30 (our calculation) |
| Securities (equity and fund savings) | 20 percent | €400 | €80 |
The figures come from the consumer guide of the Sparkasse savings bank (as of 2025). The maximum amounts are our own calculation. Before you make a binding decision, check the figures in the Capital Formation Act, because they can change.
Which income limits apply?
The bonus is only paid if your taxable income stays below a limit. According to the Sparkasse, since 1 January 2024 the limit has been €40,000 for single people and €80,000 for joint assessment, and it applies to both types of investment (as of 2025). Taxable income is not the same as your gross salary. It is the amount after deducting allowances and lump sums.
- Assumption: your gross annual salary is €36,000, and you are single with no other income.
- After the employee lump-sum allowance of €1,230 (section 9a EStG, as of January 2026) and other deductions, your taxable income is well below €40,000.
- Result: in this example the limit is respected. Calculate the exact figure with the tax calculator of the Federal Ministry of Finance.
Worked example: what does the bonus add up to?
The example shows how the bonus affects your return. It assumes that you use the full maximum and that you stay within the income limit.
- Assumption: you pay €40 a month into a building society contract. That is €480 a year, but only €470 is subsidised.
- Savings bonus: 9 percent of €470 is €42.30 per year.
- Assumption for securities: you pay €400 a year in. The savings bonus is 20 percent, so €80 a year.
- Comparison: in this example the securities bonus is higher, because the percentage is larger. The price is that you carry the risk of falling prices.
The calculation shows that the savings bonus is not a guaranteed return. It is a subsidy that pays off only if you keep the contract until the lock-in period ends.
Building society savings or securities: which fits you?
Both types of investment have strengths and weaknesses. The comparison below helps you sort out your priorities without recommending a specific product.
| Feature | Building society savings | Securities |
|---|---|---|
| Purpose | Often tied to housing, for example a building society contract for property | Asset building through capital markets |
| Risk | Lower price volatility, but the contract terms are fixed | Price risk, the value can also fall |
| Subsidy | 9 percent on up to €470 a year | 20 percent on up to €400 a year |
Whatever you choose, commit only to a contract whose lock-in period you can oversee. The VermBG sets the lock-in periods, and they differ between types of investment.
Typical pitfalls
Some mistakes with capital-forming benefits come up again and again. Knowing them helps you avoid losing the subsidy.
- The contract is signed but the bonus is never applied for. Check after the first year whether the subsidy has actually arrived.
- The monthly amount exceeds the subsidised maximum. The part above the limit receives no bonus, even if it is invested.
- The gross salary is confused with the income limit. What counts is taxable income.
Common questions
Do I receive the savings bonus automatically?
Not necessarily. The bonus is a subsidy that you must be entitled to. Ask your provider which documents are needed and whether the application goes through the tax office.
Can I get capital-forming benefits if I work part-time?
Whether benefits are offered depends on your employment contract and company rules, not on the number of hours you work. The bonus, however, depends on your taxable income and therefore also on the income limit.
What happens if I change jobs?
The savings contract usually continues even if your employer changes. However, the employer contribution may stop if the new employer does not offer it. You can then pay the amount yourself or pause the contract, if your provider allows it.
Are capital-forming benefits useful while I am still studying?
That depends on whether you already have an employment contract, since these benefits are tied to employment. During your studies, general asset building may be an option instead. Our guide on building assets during your studies covers that (in German).
What to do now
- Ask HR whether capital-forming benefits are offered and which types of investment are available.
- Check the income limit with your taxable income from the tax calculator of the Federal Ministry of Finance.
- Compare building society savings and securities by lock-in period, costs and your investment horizon.
- Keep the documents for the savings bonus, and check each year whether the subsidy has arrived.
Related reading
- Vermögensaufbau im Studium: So startest du mit kleinen Beträgen (in German)
- Berufseinsteiger in Zahlen 2026: Grenzen, Gehalt und Fakten
- Deine erste Gehaltsabrechnung: Was jeder Posten bedeutet
- Part-Time Jobs and Taxes for Students in Germany
Sources: Capital Formation Act (VermBG), gesetze-im-internet.de · Section 9a EStG, employee lump-sum allowance (as of January 2026) · Sparkasse, guide on the employee savings bonus (as of 2025) · Tax calculator of the Federal Ministry of Finance
Last updated: October 2026. This guide is general information, not individual advice.
