Employer Subsidy / On-Top – The tax-free pay rise
You cover the Deutschlandticket in full for your employees – tax-free, without a salary negotiation, as an immediate benefit. Employees pay €0. You pay €60.85 per month.
Employees pay €0
You pay €60.85/month
100% tax-free.
100% tax-free for employees
The subsidy is entirely free of tax and social security contributions under §3 no. 15 EStG – including private use of the ticket.
Employees pay €0
Employees’ gross salary and net income stay completely unchanged. The ticket is a pure additional benefit.
No contract change required
Unlike salary conversion, no supplementary agreement to the employment contract is needed. Getting started is straightforward.
How the subsidy model works
With the subsidy model (also called "on-top"), the employer covers the full cost of the Jobticket – on top of the salary already owed. Under §3 no. 15 EStG this subsidy is entirely free of tax and social security contributions up to the value of the ticket (€59.85). The €1.00 service fee is a business expense for the employer and not taxable salary for the employee. Employees’ net income stays unchanged – the ticket comes entirely on top. For employees who would otherwise buy the ticket privately, that is worth €756 a year.
Example calculation: what does the model cost?
Example: an employee on €3,000 gross per month (tax class I, Bavaria)
Employer
| Ticket price (with 5% corporate discount) | €59.85 |
| Jobticket+ service fee | €1.00 |
| Total employer cost per employee/month | €60.85 |
Employees
| Effective cost for employees | €0.00 |
| Saving vs. buying privately (€63/month) | +€63.00 / month |
| Annual benefit per employee | +€756.00 / year |
| Change in net salary | €0.00 (unchanged) |
Note on the commuter allowance:Employees’ commuter allowance (Entfernungspauschale) is reduced by €59.85 per month. This is required by law and must be reported in the payroll tax certificate (line 17).
Example calculation – not tax advice. The figures are based on the defaults of the Jobticket+ calculator and may differ depending on tax class, federal state, church tax and social security contributions. Please consult your tax adviser about implementing this in your company.
Frequently asked questions about the subsidy model
Is the subsidy model suitable for mini-jobbers?
Yes, but with an adjustment: because tax-free subsidies count towards the mini-job earnings threshold (€603), the cash salary has to be reduced accordingly. Example: €540.00 cash salary + €63.00 subsidy = €603.00 total remuneration.
Can I combine the subsidy model with other benefits in kind?
Yes. The §3 no. 15 EStG subsidy for the Jobticket is independent of the €50 benefit-in-kind allowance (§8 EStG). Up to €50 per month can still be granted as tax-free benefits in kind on top – for example the mobility vouchers from MILES, Bolt, TIER and Dott.
Introduce the Deutschlandticket as your strongest employee benefit
No IT knowledge required. Setup in under 5 minutes, ticket issued in 30 seconds. No minimum term, 85+ HR integrations included.