The so-called relax lump sum or relax allowance (relax benefit) is an allowance that employers can grant their employees once a year in addition to their regular salary in a tax-optimized manner. These are not tax-exempt emoluments. The payment of the recreation allowance is taxable, but the wage tax can be taxed as a lump sum. Please note that the amounts are exclusive of church taxes.
How much is the relax allowance?
With the relax allowance employees are offered an annual allowance in the amount of:
156 € for each employee
104 € additional for spouse
52 € additional for each child
Which employees can be granted the relax allowance?
All employees can receive an allowance for their relaxation costs. This benefit is not only available to full-time employees, but also to part-time employees and working students. In principle, employees are not entitled to the lump-sum relax allowance. This benefit is a voluntary measure on the part of the employer.
❗️Note: Employees can claim the allowance in the Circula App only for leave taken, not for future time periods. Employees have the 3 months following their leave to submit it via the Circula app and can submit it as early as on the last day of the 7 day time period of their leave.
How do I use Circula's Relax Benefit?
Submit vacation days:
Go to the "Benefits" tab in your mobile app
Tap the yellow Plus Button to submit your vacation days
Select "Relax"
Read through the information.
Now select the month in which you took the vacation days.
Select the vacation days taken (min. 7 consecutive weekdays).
Tab on the yellow arrow at the bottom right to submit your vacation days.
Now you can add possible spouses and/or children.
Now check that you have entered all the information correctly and tab "Submit".
Now your submission will be reviewed by Circula.
In the Benefits tab, you can review your submissions. (Each submission has a status.
If the review is successful, you will be reimbursed for your relax allowance with your next paycheck.
Possible Errors
❗️Note:
The Relax Benefit can only be applied for vacations that took a minimum of 7 consecutive weekdays (so at least 5 working days).
It can only be applied for vacations that took place less than 3 months ago.
It can only be applied for vacations that have already ended (not for future vacations).
In the event of a vacation over the turn of the year, please also note that the Benefit must still be submitted in December if you wish to use it for the old year. Therefore, if you travel from December to January and submit the benefit after the turn of the year, the benefit will be valid for the new year.
Frequently asked questions
What age may my child be in order to be able to use the relax allowance?
Children include all descendants who have not yet reached the age of 18 and dependent children up to the age of 25.
Do employees also pay tax on the relax allowance?
No, this benefit is taxed at a flat rate of 25% for employers and is exempt from tax and social security contributions for employees.
How much is the allowance?
156 € for each employee
104 € additional for spouse
52 € additional for each child
Example: Mr. Zukowski is married and has three children. He goes on vacation with his family for two weeks. A week after his return, he claims his relax allowance via the Circula app. In the following month, Mr. Zukowski receives a one-time reimbursement of €416 from his employer. Please note that the amounts are exclusive of church taxes.
How often can the Relax Benefit be used?
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.
How long should the minimum leave be in order to be eligible for the relax allowance?
To use this Benefit in the Circula App, 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 rest allowance can be reimbursed with Circula.
Do employees have to have traveled on vacation to be able to use the relax allowance?
No, the relax allowance can be used both as an allowance for an all-inclusive trip and for a vacation at home.
When do employees receive the relax allowance?
Employees can claim their relax allowance only after they have returned from vacation. They can submit it from the last day of the time period on in the Circula App (leave for at least 7 consecutive days) and then receive a one-time repayment per year from their employer.
Help, I receive an error message
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.
Do you still have questions?
💬 Chat Support
📞 +49 30 588 491 01
✉️️ support@circula.com