Many employment contracts contain a sentence on capital-forming benefits (vermögenswirksame Leistungen, VL), often without any explanation. When you start your career, it pays to understand this sentence, because the state support is modest but not negligible. This guide explains what capital-forming benefits are, which investments are eligible and what to watch out for when you start.
Short answer: Capital-forming benefits (VL) are payments from your employer that flow into a capital-forming investment. The state pays a savings bonus (Sparzulage): 20 percent on up to 400 euros a year for securities, and 9 percent on up to 470 euros a year for building society savings. The income limit is 40,000 euros of taxable income for single taxpayers. Stand: October 2026.
The key points at a glance
- Capital-forming benefits only exist if they are agreed in your employment contract or in a collective agreement. There is no general statutory entitlement.
- The savings bonus only applies to limited amounts: up to 400 euros a year for securities (20 percent) and up to 470 euros a year for building society savings (9 percent).
- The income limit is 40,000 euros of taxable income for single taxpayers and 80,000 euros for joint assessment.
- The investment is tied up. How long and under which conditions it is locked up is set by law and by the contract.
- An own savings plan is more flexible, but does not receive a savings bonus. The two can be combined.
What capital-forming benefits are
Capital-forming benefits are part of your pay that your employer pays into a capital-forming investment on your behalf. The legal basis is the Fifth Capital Formation Act (Fünftes Vermögensbildungsgesetz, 5. VermBG). Whether you receive VL depends on your employment contract or a collective agreement. When negotiating, make sure that VL is expressly agreed.
Investments in securities, fund units and equity participations, as well as building society contracts, are eligible in particular. Which forms of investment count in detail is set out in section 2 of the Act.
How the savings bonus works
The savings bonus is state support on top of your investment. It is calculated as a percentage of a maximum amount, depending on the type of investment. The figures refer to section 13 (2) of the Act (status October 2026).
| Type of investment | Maximum amount per year | Savings bonus | Maximum bonus per year |
|---|---|---|---|
| Securities, fund units, equity participations | 400 euros | 20 percent | 80 euros |
| Building society savings | 470 euros | 9 percent | 42.30 euros |
Assumption: you invest 50 euros a month in fund units, which is 600 euros a year. Only the first 400 euros of this are supported. The bonus is 20 percent of 400 euros, which is 80 euros a year. The remaining 200 euros are not supported, but they remain your money and are part of your investment. If you put 50 euros a month into a building society contract, that is 600 euros a year, of which 470 euros flow into the support, and the bonus is 42.30 euros.
The calculation also shows this: if you invest more than 400 euros a year in securities, you still only receive the bonus on 400 euros. A higher VL amount is therefore only worthwhile if you want to invest the money for the long term anyway. If you need the sum in the coming years, do not invest more than the lock-in allows, and keep the rest in a flexible account.
Who can receive the savings bonus
The support depends on the income limit. The relevant figure is your taxable income under section 2 (5) EStG in the year of the investment. It is usually well below your gross salary, because work-related expenses and special expenses have already been deducted. The limit is 40,000 euros for single taxpayers and 80,000 euros for joint assessment.
If you are below the limit, you can use the support. A look at your most recent income tax assessment quickly shows where you stand. For career starters the limit is usually easy to stay under. With higher salaries, it is worth checking your own taxable income. An example for students with a part-time job is in the guide Building Wealth as a Student: Starting Small.
What to watch out for when you start
- Clarify the entitlement: is VL in your contract or in a collective agreement? Ask HR about the amount and the type of investment.
- Choose the type of investment: securities fluctuate in value, while building society contracts follow their own rules for interest and payout. The two types have different time horizons.
- Mind the lock-in period: the investment stays tied up. Know the details under the law and under the contract before you decide.
- Set a realistic amount: only take the amount you do not need for emergencies over the long term. An emergency fund should be in place on a flexible account beforehand.
- Keep costs in view: fees and sales charges reduce the return, especially with small amounts.
VL or your own savings plan?
VL is one building block, not a complete concept. The savings bonus is predictable support, as long as the conditions are met. An own ETF savings plan is more flexible, but does not receive a bonus. Both can be combined, for example if VL flows into an investment and you run your own savings plan alongside it. The comparison between the two routes is shown in the guide Altersvorsorgedepot oder ETF-Sparplan.
Frequently asked questions
Can I get VL in a mini-job?
That depends on the employer and the agreement. Whether a mini-job includes VL is not automatically set by law. Ask your employer which arrangement applies. The savings bonus itself also depends on the income limit and the conditions of the investment.
What happens if I change jobs?
The existing investment remains in place. Whether your new employer continues to pay VL depends on its agreement. You usually continue the investment with the provider where you set it up. When you change jobs, it is worth a quick look at your documents.
Does part-time work affect the savings bonus?
The bonus depends on the amounts invested and on your taxable income in the year of the investment. The amount of your working hours is not decisive for this. What matters is that the limits are respected and the investment meets the requirements.
Can I use VL as a student?
Yes, if your employer pays VL and you stay within the income limit. The statutory requirements apply whether you are a student or a career starter. What matters is the employment relationship and your taxable income.
When do I receive the savings bonus?
You usually apply for the savings bonus with a form to the tax office, typically together with your tax return (annex VL). The bank or provider confirms the investment. You will learn the exact procedures and deadlines from the tax office or your provider.
What to do now
- Check your employment contract or collective agreement for VL, and ask HR about the amount and the type of investment.
- Estimate your income limit roughly using your taxable income, not your gross pay.
- Choose an investment that matches your time horizon, and compare the costs.
- Note when you want to apply for the savings bonus in the tax year.
Related reading
- Building Wealth as a Student: Starting Small
- Betriebliche Altersvorsorge beim ersten Job: Arbeitgeberzuschuss nutzen
- Altersvorsorgedepot oder ETF-Sparplan: Der Vergleich für Berufsstarter
- Career Start After University: Your Guide to the First Job
- ETF Savings Plan for Students: Step by Step
Sources: Fifth Capital Formation Act (5. VermBG), sections 2 and 13, status October 2026; Income Tax Act (EStG), section 2 (5) (taxable income), status October 2026.
Stand: October 2026. This guide is general information and not individual advice.
