The so-called recreation allowance (relax benefit) is an allowance that employers can grant their employees in a tax-optimized manner. Thus, employers can reimburse their employees once a year with a lump sum for the purpose of recreation. This employee benefit is taxed at a flat rate of 25% for the employer and is not subject to social security contributions. For employees, it is exempt from both tax and social security contributions. Please note that the amounts are exclusive of church taxes.

Example:

Mr. Zukowski, who is married and has three children, takes a two-week vacation with his family. One week after returning, he submits his claim for the recreation allowance through the Circula app. The following month, he receives a one-time reimbursement of €416 from his employer. Please note that the amounts are exclusive of church taxes.

In general, any form of recreation can be subsidized with the help of the recreation allowance. However, the prerequisite is that a "vacation" has been taken for at least 7 consecutive weekdays.

All employees can be granted the recreational allowance by the employer. This benefit can be used not only by full-time employees but also by part-time employees and working students.

The amount can be paid once per calendar year. The entitlement includes the entire amount once. There can be no division of the amount over the year.

No, the recreation allowance is set for individual employees.

At least one week (7 weekdays), for example from Sunday to Saturday. If an employee has taken fewer days of leave at a time, no relax allowance can be reimbursed.

No, the recreation allowance is a voluntary measure on the part of the employer.

No, vacation pay and the recreation allowance are different benefits and can be paid simultaneously. Both are voluntary measures provided by the employer and are not mutually exclusive.

Paragraph 40 of the Income Tax Act (EStG) on the lump sum wage tax in special cases regulates the recreation allowance. Under paragraph 2, sentence 1, number 3 of the EStG, it is stated that the employer may levy wage tax at a flat rate of 25%, insofar as he grants recreational allowances, if these, together with recreational allowances granted earlier in the same calendar year, do not exceed 156.00 euros for the employee.

In addition to the allowance of 156.00 euros, employers are entitled to an additional 104.00 euros per year for spouses of the employee and an additional 52.00 euros per year for each child as a recreation allowance.

No, the recreation allowance is taxed at a flat rate of 25% for employers and is exempt from tax and social security contributions for employees. Please note that the amounts are exclusive of church taxes.

No, if an employee wants to use the relax allowance for a vacation that is in the future, was taken more than 3 months ago, or is shorter than 7 days (5 working days), the vacation allowance cannot be used.

Children include all descendants who have not yet reached the age of 18 and dependent children up to the age of 25.

Employees have 3 months to claim the relax allowance.

Since the recreation allowance expires at the end of the year (12/31), it must be claimed within one calendar year, or it will be forfeited. So please make sure to submit at least seven days before the end of the year. You can submit the benefit on the last day of your leave at the earliest.

No, the recreation allowance can be used both as an allowance for an all-inclusive trip and for a vacation at home.

Employees can claim their recreation allowance only after they have returned from vacation or earliest on the day of their return. After submitting, they will receive a one time payment from their employer in the following month.

If an employee wants to claim the allowance for a time period that is in the future, more than 3 months ago or a vacation that is shorter than 7 days at a time, the recreation allowance cannot be claimed, and an error message is displayed in the Circula app.