(2024) What is the level of funding through employee savings bonuses and government allowances?

You receive the employee savings bonus if your taxable income does not exceed certain limits. Since 1 January 2024, the following income limits apply uniformly for share-based savings (e.g. investment funds) and building savings (§ 13 para. 1 of the 5th Capital Formation Act, Future Financing Act):

• 40.000 Euro for single persons
• 80.000 Euro for married couples.

Amount of the employee savings bonus:

• Share-based savings: 20% of the annual savings, up to a maximum amount of 400 Euro. This results in up to 80 Euro of funding per year, i.e. 480 Euro over six years.
• Building savings: 9% on up to 470 Euro savings per year, resulting in 43 Euro of government funding. Over six years, this amounts to 258 Euro.

Additional housing bonus: Savers with a taxable income under 35.000 Euro (single) or 70.000 Euro (married) receive the housing bonus in addition to the employee savings bonus:

• 10% funding on savings of up to 700 Euro (single) or 1.400 Euro (married) per year.
• This corresponds to a maximum funding of 70 Euro or 140 Euro per year.

Further government funding:

• Riester funding: For certified building savings contracts.
• Repayment of a building loan: Capital-forming benefits can also be used to repay a building loan, and the entitlement to the employee savings bonus remains.

Note: In addition to government funding, there is also the return on the respective savings product. It is worth comparing providers.