Changes in benefits in kind from January 2024

As in previous years, the following applies: new year, new benefits in kind!

The Federal Ministry of Labour and Social Affairs (BMAS) regularly reviews the applicable benefits in kind to ensure that they correspond to the actual market value. Since consumer prices rose by 8.4 percentage points in the relevant period from June 2022 to June 2023, according to the BMAS, the Benefits in kind as from January 1, 2024 raised again.

Employers and HR departments in particular should therefore be aware of the new benefits in kind when it comes to the correct taxation of these for their employees. We provide a brief overview of the most important changes.

No adjustment of the values for tax-free payments in kind

The height of Tax-free payment in kind remains unchanged after the last change from 44€ to a maximum of 50€ per month in January 2022.

This means that within this framework, the maximum allowance from companies to employees is 600 euros per year. Companies can therefore continue to regularly provide their employees with up to 50 euros per month as a tax-free payment in kind, a total of 12 times a year.

In addition to the monthly tax-free payment in kind, allowances on special occasions of a maximum of 60 euros remain unchanged. These can be used, for example, as a birthday present, for a wedding or when a child is born. Employers can make use of this option up to 3 times a year in total.

The tax-free payment in kind will therefore continue to be an ideal tool for motivating employees in 2024. This means that employees can receive up to 780 euros per year tax-free support.

Are you interested in tax-free benefits in kind as an employee benefit? Get in touch with us and we'll give you an insight into how easy the technical implementation is for us and how you can always support your region at the same time with tax-free payments in kind with Regional Hero.

Increase in benefits in kind for meals

Most people are more familiar with this form of benefit in kind under the simplified term meal allowance. While the figures for tax-free payments in kind remain unchanged in 2024, the Federal Ministry of Economics and Social Affairs has once again adjusted the benefits in kind for food subsidies for 2024.

From January 2024, the meal allowance will increase from 2 euros to 2.17 euros per employee per day for breakfast and from 3.90 euros to 4.13 euros per employee per day for lunch or dinner. In the case of full board, meals should therefore be set at a value of 10.43 euros per employee.

Attention: The benefits in kind can only be set if the price of the individual meal does not exceed 60 euros.

The adjustments also result in new monthly limits, which have been increased from 60 euros to 65 euros per employee for breakfast and from 114 euros to 124 euros for lunch and dinner per employee. From January 1, 2024, a total benefit in kind of 313 euros (previously 288 euros) per month per employee can therefore be set.

5% increase in benefits in kind for rent and accommodation

When it comes to accommodation and rents, benefits in kind will also be increased from January 1, 2024. While it was 8.83 euros last year, this year the calendar day value is 9.27 euros per employee. This also increases the monthly figure by 5 percent from 265 euros to 278 euros per employee.