Designing attractive mobility benefits has become a key success factor in the competition for talent. In Germany, tax legislation offers unique opportunities to support employees with their mobility needs – often with significant financial advantages for both sides. From tax-free public transport allowances to company bike leasing to electric company cars, German legislation opens up diverse options for companies that go far beyond traditional salary increases.
This guide provides you with a comprehensive overview of the most important mobility benefits in Germany. For each benefit, we explain how it works, examine costs and financing, clarify tax treatment, and show practical implementation pathways. Finally, you'll find strategic considerations that are particularly relevant when implementing mobility benefits in German companies.
The cash-paid commuting allowance is the simplest mobility benefit. Due to its universal applicability for all commuters and modes of transport, allowances and flat rates are still granted by many German companies to employees. Moreover, a commuting allowance can be implemented quickly and is typically paid directly with the payroll.
For strong employer branding, especially among younger and sustainability-oriented employees, it lacks retention. Compared to benefits like the Deutschlandticket or company bikes, it increasingly appears outdated.
Commuting Allowance vs. Commuter Tax Deduction (Pendlerpauschale): The Difference
The commuting allowance should not be confused with the statutory commuter tax deduction, so-called 'Pendlerpauschale'. The commuter tax deduction (also: Entfernungspauschale) can be deducted by any employee in their tax return under business expenses, while the commuting allowance is granted by the company itself as a benefit. However, the commuting allowance simultaneously reduces the commuting costs that employees can declare in their tax return.
For companies looking to quickly create financial relief for employees or seeking a universal benefit for everyone, regardless of rural, metropolitan or urban areas, the commuting allowance is attractive. With a flat-rate taxation of 15% and no social security contributions, the additional expense for the company remains small. In the long term, however, the model is more cost-intensive than tax-free Deutschlandtickets or a mobility budget granted via benefits in kind.
How the commuting allowance is calculated:
Distance (one way) × Working days × Rate = Monthly allowance
Rate from 2026: €0.38/km
Employers can remit the commuting allowance with a flat-rate income tax of 15%, as long as the allowance does not exceed the distance allowance (between home and workplace €0.38 per kilometer). Social security contributions are completely waived in this case.
Allowances for public transport tickets or job tickets that are paid in addition to salary can even be granted completely tax and social security contribution-free according to §3 No. 15 EStG (see below).
The commuting allowance can basically be represented via a standard payroll type (e.g., DATEV 2951) – however, there is no separate "commuting allowance software," so ultimately all data must be entered manually. The HR department must record the amounts monthly or adjust them if something changes for employees.
No Self-Service Means Additional Burden for HR
Unlike mobility budgets, the Deutschlandticket, or company bike providers, there is no app where employees can maintain their commuting data themselves. This ties up HR resources every month and is operationally cumbersome.
The high manual effort in calculating the commute distance is therefore perceived by many as a pain point, even though legally only the one-way distance between residence and workplace may be reimbursed.
Since the allowance counts as ongoing wages, it must be settled in the same month in which it arises, otherwise correction runs threaten.
Employers have two options for billing:
A variable allowance means significantly more work, as the kilometers driven or tickets purchased must be documented monthly with receipts – usually via Excel.
If the employer pays a fixed flat-rate amount or as a simplification rule only accounts for 15 working days per month for the allowance, the commuting allowance is easier to implement administratively. Manual effort can still arise if there is no automated payroll connection. The larger the workforce, the more complex the implementation.
The mobility budget is a flexible mobility allowance that employees can freely use for various modes of transport. Instead of a fixed company car, they receive a monthly budget for public transport, carsharing, taxis, e-scooters, bikesharing, or refueling.
Employers define a monthly maximum budget that employees can freely use. At the end, only the amounts that employees have spent on mobility are billed. Costs can thus remain plannable. Unlike a flat-rate commuting allowance, the mobility budget is needs-based and flexible and replaces the patchwork of job tickets, car subscriptions, company bikes, and other allowances as a central solution, allowing administrative costs to be saved.
The more tax-free modes of transport are used with the mobility budget, the lower the payroll costs for employers and the tax burden for employees. This simultaneously promotes environmentally friendly mobility. Digital platform processing costs €3 to €9 per employee per month. This fee covers budget provision, tax-compliant billing, and automated processes, saves time, and significantly relieves HR and payroll.
The mobility budget uses three combinable tax options:
The Right Platform Makes the Difference
Selecting a specialized platform is the key to successful implementation. Modern systems handle the entire process automatically and significantly reduce administrative effort. Important criteria are the mobility offering, user-friendliness, and automatic tax optimization. Payroll integration via interfaces to DATEV, SAP, or Personio ensures automatic billing. During onboarding, tax advantages are communicated and employees are trained in app use.
Implementation in a Few Steps
With the right platform, implementation is structured. First, the budget amount is determined, either uniformly for everyone or differentiated by role and location. The company then defines the scope of use. Which modes of transport are covered? Are only sustainable options allowed or also taxis and refueling? A mobility policy documents these decisions and regulates eligibility requirements and procedures upon departure.
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The public transport allowance is the most tax-attractive form of mobility support in Germany. Employers can grant allowances for public transport completely tax and social security contribution-free. Unlike the commuting allowance or mobility budget, there is no maximum limit and reimbursement is unlimited.
The allowance works according to the reimbursement principle. Employees buy public transport tickets (single trips, day, week, or month tickets) and submit receipts to the employer. The employer reimburses the actual costs tax-free via payroll. Alternatively, the employer can also provide tickets directly, such as through bulk orders or framework agreements.
The public transport allowance only incurs actual ticket costs. The amount varies depending on employees' usage behavior. Advantage for employers: The public transport allowance is significantly more cost-effective than a salary increase.
Tax exemption according to §3 No. 15 EStG: The tax exemption applies to employer benefits for expenses incurred for using public transport in scheduled services between home and first place of work as well as in local public transport.
Important tax regulations:
Since 2020, employers can alternatively tax public transport allowances at a flat rate of 25 percent. The advantage: Employees' commuter tax deduction is not reduced. This is particularly worthwhile for long commutes where employees want to claim the full commuter tax deduction in their tax return.
Option A: Receipt-based reimbursement
Employees buy tickets themselves and submit receipts. HR department checks receipts and reimburses costs via payroll. Advantage: No upfront investment. Disadvantage: High manual effort in receipt checking.
Option B: Digital reimbursement platform
Employees upload receipts via app, platform checks automatically and transmits data to payroll. Modern solutions recognize public transport tickets via OCR and categorize automatically. Advantage: Low administrative effort. Disadvantage: Platform costs (approx. €2-5 per employee/month).
Option C: Direct provision
Employer concludes framework agreements with transport associations and provides tickets directly. This is particularly suitable for larger companies with homogeneous workforce at the same location. Advantage: Simple administration, often volume discounts. Disadvantage: Less flexibility.
Best Practice: Combination of public transport allowance (e.g., Deutschlandticket) and mobility budget for other modes of transport. This significantly increases the flexibility often desired by employees.
The Deutschlandticket is a nationwide valid monthly ticket for public transport available since May 2023. With the ticket, holders can use scheduled buses, trams, subways, S-Bahn, and regional trains (RB, RE) throughout Germany without restrictions. The ticket is personal, non-transferable, and only available as a monthly cancelable subscription.
Since January 2026, the ticket costs €63 per month. Employers can subsidize the Deutschlandticket as a job ticket with an employee contribution – with a subsidy of at least 25%, companies receive a 5% discount.
The ticket is particularly attractive for commuters and frequent travelers as it offers a cost-effective and flexible mobility solution. The Deutschlandticket is usually cheaper than a regular monthly pass from most transport associations.
If employers grant the Deutschland job ticket in addition to wages otherwise owed, it is completely tax and social security contribution-free according to §3 No. 15 EStG. This applies regardless of whether the ticket is used for commuting or privately. For payroll, the Deutschlandticket subsidy only needs to be entered in the payroll account.
Alternatively, employers can uniformly tax subsidies paid to employees at a flat rate of 25% for a calendar year. For employees, the subsidy remains tax and social security contribution-free in this case. The employer subsidy for employees is then not offset against the commuter tax deduction and thus not shown in the wage tax certificate.
For implementation and administration of the Deutschlandticket as a job ticket, employers have three options, which differ significantly in bureaucratic and time effort.
Option A: Manual implementation by HR department
With manual implementation, employees buy the Deutschlandticket independently at the regular price of €63 and submit receipts to HR. HR checks receipts and reimburses the amount tax-free via payroll. The advantage lies in quick implementation without technical infrastructure or framework agreements. The disadvantage is higher administrative effort through manual receipt checking. Additionally, the five percent discount is forfeited, as it requires a framework agreement with a transport company. Employees therefore pay the full price of €63, regardless of the employer subsidy amount.
Option B: Use of transport association or Deutsche Bahn portals
Companies conclude a framework agreement with Deutsche Bahn or a regional transport association. Employees order the ticket independently via the respective portal, billing is centralized through the employer. With a minimum subsidy of 25 percent, the five percent discount automatically applies. This variant is suitable for companies that prefer a central solution without external platforms. Administrative effort is moderate but requires coordination with transport providers.
Option C: Use of a digital mobility platform
Integration into a digital mobility platform is the most modern and efficient solution. Employees book the Deutschlandticket directly in the app with just a few clicks, billing is fully automated, and the system handles tax optimization. A digital platform like NAVIT also offers a split-pay solution that enables flexible splitting between employer and employee. Administrative effort is reduced to almost zero, and tax compliance is automatically ensured.
Setting up the benefit requires only defining the reimbursement process with Option A, concluding a framework agreement with Option B, and integrating the platform with Option C. Ongoing operation is minimal with digital solutions, but medium to high with manual reimbursements. Tax complexity remains low, as the regulation is clear and has been established for years.
The BahnCard 100 is the premium variant among public transport benefits and offers unlimited mobility throughout the German rail network. For currently around €4,899 annually, holders can use all Deutsche Bahn trains, from local transport to long-distance travel (ICE, IC, EC). Unlike the Deutschlandticket, there are no restrictions on using long-distance transport, even for private trips.
The BahnCard 100 is particularly suitable for frequent travelers, field service employees, or executives with long commutes who frequently use long-distance transport. It combines the advantages of a job ticket for commuting with flexibility for nationwide business trips and private mobility in a single ticket.
Annual costs:
The tax treatment of the BahnCard 100 is more complex than the Deutschlandticket but offers significant advantages. A forecast calculation by the employer when issuing the card is crucial.
Three-tier model of tax exemption:
Tier 1: Amortization through business trips (§3 No. 16 EStG)
First, the employer checks what costs would have been incurred for business trips without BahnCard 100 as single tickets. This amount is to be regarded as tax-free travel expense reimbursement.
Tier 2: Amortization through commute (§3 No. 15 EStG)
The remaining amount after deducting business trip costs is compared with the regular sales price of an annual ticket for the route between home and first place of work. This portion remains tax-free as a job ticket.
Tier 3: Remaining amount
Only if a remaining amount exists after Tiers 1 and 2 does a taxable monetary benefit arise.
Important regulations:
Implementation first requires a forecast calculation by the employer or HR department. Expected business trips of the employee for the coming year are estimated and costs of a comparable annual ticket for the commute are determined. This forecast should be documented and added to personnel files.
The BahnCard 100 is ordered directly from Deutsche Bahn and can be issued in the employee's name. Billing is through the employer. In payroll, only the amount remaining after Tiers 1 and 2 is recorded as a monetary benefit.
The BahnCard 100 is particularly attractive for employees who regularly use long-distance trains and have a long commute. With more than 15 long-distance trips per year or a commute over 100 kilometers with train use, the card quickly pays for itself. Tax benefits make it significantly cheaper for employers than pure reimbursement of single tickets.
Company bike leasing enables employees to lease high-quality (e-)bikes through the employer – similar to a company car. The term is usually 36 months, including insurance and service.
In recent years, company bike leasing has evolved from a niche model to one of the top benefits. The combination of strong tax relief, health bonus, and positive sustainability effect makes the company bike one of the most popular corporate benefits. This is also reflected in numbers:
A company bike can be offered without employer subsidy: employees bear the leasing rate themselves through salary conversion – and typically save 30-40% compared to conventional cash purchase. Companies can thus offer a benefit with maximum impact without their own budget.
Purchase at End of Lease:
S-pedelecs (>25 km/h) count as motor vehicle → 1% rule
Employers can choose from a variety of company bike leasing providers, which however differ significantly in service scope and administrative effort. It's therefore worthwhile to compare providers in advance to efficiently solve unforeseen problems.
Reduce HR Effort with Digital Self-Service
Most providers now offer company bike leasing digitally. Through an online portal, employees can select their desired bike themselves and submit their leasing application for approval. Benefits managers typically only need to check final approval.
One-time Framework Agreement
After implementing the provider, a central framework agreement ensures that additional company bikes can be easily added or returned. Typical leasing steps such as ordering, handover, or return can usually be semi-automatically processed. However, depending on the provider's service scope, effort can also arise here.
Maintain Leasing Data in Payroll
With company bike leasing via salary conversion, the monthly rate must be taxed as a monetary benefit in gross salary according to the 0.25% rule (see above). Tax representation is done through standardized processes and monthly maintenance in payroll.
Account for Effort in Incidents and Special Cases
Damage cases such as accident or theft and special cases such as illness, parental leave, or early departure from the company must be clarified by HR with the lessor and insurance—these cases occur rarely but can be more or less support-intensive depending on the provider's service offering.
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Get infoThe classic company car is one of the most popular mobility benefits in Germany. Employers provide employees with a vehicle for professional and private use, with the company typically bearing all costs – from leasing or purchase through insurance and maintenance to fuel. Employees incur a monetary benefit that must be taxed.
The company car traditionally targets three main groups. Executives often receive it as a status symbol and fixed salary component that underscores their position in the company. Field service employees need it functionally for their daily work with customers and partners. Additionally, many companies use company cars specifically as a recruiting tool to attract and retain key talents.
The total cost of ownership of a company car consists of various cost blocks. These include acquisition or leasing rates, depreciation, fixed costs such as insurance and taxes, as well as variable expenses for fuel, maintenance, and repairs. Depending on vehicle model and financing form, total monthly costs for employers range between €400 and over €1,000.
Typical Annual Costs by Vehicle Class:
Compact class causes approximately €5,000 to €8,000 total annual costs. This includes leasing rates or depreciation of €2,500 to €4,000, insurance costs between €600 and €1,000, maintenance and inspections for €400 to €700, and fuel costs of €1,500 to €2,300 with average mileage.
Mid-class vehicles cost €8,000 to €12,000 per year. Leasing rates or depreciation are €4,000 to €6,000 annually, while insurance costs €1,000 to €1,500. Maintenance work costs €600 to €1,000, and fuel causes costs between €2,000 and €3,500.
In the upper class, annual costs rise to €12,000 to €20,000 or more. Leasing rates or depreciation range between €6,000 and €10,000, insurance costs €1,500 to €2,500, maintenance costs €1,000 to €2,000, and fuel costs can reach €3,000 to €5,500.
Where do these numbers come from? The cost figures are based on industry-standard average values from fleet studies (SIXT business company car cost calculator 2025, Carano fleet management 2025, ADAC leasing cost check 2024). Actual costs vary depending on vehicle model, usage intensity, fuel prices, and regional insurance rates.
Tax treatment of company cars is complex but offers significant advantages, especially for electric vehicles. Employees must tax private use as a monetary benefit, with two methods available.
The 1-percent rule (flat-rate method)
With the 1-percent rule, one percent of the gross list price is assessed monthly as a monetary benefit. Additionally, 0.03 percent of the list price per kilometer simple distance between home and first place of work is added. This method is simple to apply and is particularly suitable for employees with high private use.
A practical example illustrates the calculation. For a combustion engine with €40,000 list price and 20-kilometer commute, the following monetary benefit results: One percent of €40,000 is €400 monthly for private use. Additionally, 0.03 percent times €40,000 times 20 kilometers, i.e., €240 for commuting. In total, the monthly taxable monetary benefit amounts to €640.
Electric promotion with 0.25-percent rule
For pure electric vehicles, significantly reduced taxation has applied since July 2025. The list price limit for the 0.25-percent rule was raised from originally €60,000 (until 2023) via €70,000 (2024 to June 2025) to currently €100,000. This increase was implemented through the Growth Opportunities Act and applies to vehicles acquired after July 1, 2025.
For electric vehicles up to €100,000 list price, the monthly assessment is only 0.25 percent of the gross list price. For commuting, only 0.0075 percent per kilometer is calculated – i.e., only a quarter of the rate for combustion engines. An electric vehicle with €60,000 list price and 20-kilometer commute thus causes only €150 monthly for private use (0.25 percent of €60,000) plus €90 for commuting (0.0075 percent times €60,000 times 20 kilometers). The total monetary benefit thus amounts to only €240 per month.
If the list price exceeds €100,000, the 0.5-percent rule applies to electric vehicles – still significantly cheaper than the full 1-percent rule for combustion engines. For a €120,000 expensive EV, 0.5 percent of €120,000 (€600) plus 0.015 percent times €120,000 times 20 kilometers (€360) would apply, totaling €960 monthly.
Electric advantage: For an electric vehicle with €60,000 list price and 20-kilometer commute, the monetary benefit is only €240 monthly. A comparable combustion engine would cause €640 – a savings of €400 per month or €4,800 per year from tax savings alone.
Plug-in hybrids with 0.5-percent rule
Plug-in hybrid vehicles benefit from the 0.5-percent rule if they meet certain requirements. From 2025, the requirement is an electric minimum range of 80 kilometers or a CO₂ emission of maximum 50 grams per kilometer. If these conditions are not met, regular 1-percent taxation applies. The list price limit plays no role for plug-in hybrids – the 0.5-percent rule applies regardless of vehicle price.
The logbook method
As an alternative to flat-rate taxation, employees can keep a logbook. Here, the monetary benefit is determined based on actual private use. Total vehicle costs are divided proportionally between privately driven kilometers and total kilometers. This method is particularly worthwhile with low private use (under 30 to 40 percent) or very high list prices but requires complete and proper documentation of all trips with date, mileage, destination, and purpose.
Note: Tax regulations are based on the Income Tax Act (§6 Para. 1 No. 4 EStG for the 1-percent rule, §8 Para. 2 EStG for monetary benefit). Current electric benefits apply until end of 2030 and were expanded through the Growth Opportunities Act 2024 (Source: Federal Ministry of Finance, electrive.net, steuern.de, go-e.com 2025).
Development of a Car Policy
The foundation for a structured company car fleet is a clear car policy. This first defines eligibility criteria: Which positions or functions in the company are entitled to a company car? Vehicle classes are often tiered by hierarchy level, with each level assigned a specific budget limit. Private use regulations determine to what extent the vehicle may be used privately and whether employees must bear own contributions. The fuel card regulation also belongs to the car policy: Does the company cover fuel costs flat-rate, only for business trips, or also for private trips?
Administrative Effort Overview
One-time setup of a company car program is time-consuming and requires several weeks lead time. The car policy must be developed, processes for ordering, allocation, and return must be defined, and interfaces to lessors, insurance companies, and payroll must be established. Ongoing operation, however, causes continuous administrative effort. Fleet management includes coordinating maintenance appointments, claims processing for accidents, tire changes, and TÜV appointments. Tax complexity is moderate, as calculation of monetary benefit is standardized but must be intensively monitored with the logbook method.
Digital Fleet Management
Modern fleet management systems like Vimcar, Fleetster, or Avrios significantly facilitate administration. They offer automated digital logbooks that capture all trips via GPS tracking and distinguish between professional and private. Damage management modules coordinate workshop appointments and centrally document repairs. Reporting functions automatically create evaluations on costs, usage, and CO₂ emissions. Integration into payroll systems enables automatic transmission of monetary benefit to payroll.
Current Trends in Company Car Design
Three essential trends currently shape the company car market. Electrification is progressing as companies want to use the 0.25-percent rule and thereby save costs while achieving sustainability goals. Car subscriptions instead of classic leasing are gaining importance because they offer more flexibility with staff fluctuation and enable shorter terms. Finally, more and more companies are replacing parts of their company car fleet with mobility budgets that give employees more freedom of choice while saving 75 to 90 percent of costs.
The car subscription is a modern alternative to classic company car leasing and works on a monthly flat-rate principle. Unlike leasing, the employer pays an all-inclusive rate covering all costs: vehicle use, insurance, vehicle tax, maintenance, TÜV, and often winter tires. There is no ownership, no down payment, and no residual value risk.
Core features:
Identical to classic company car
Tax-wise, car subscription is treated the same as a leased or purchased company vehicle. Employees incur a monetary benefit through private use that is taxed according to the same rules.
Flexibility with staff fluctuation
Car subscriptions are particularly suitable for companies with fluctuating workforce or project employees. If an employee leaves, the vehicle can be returned with short notice. With classic leasing, companies often remain stuck with contracts.
Plannable costs without surprises
The monthly rate covers all costs. There are no unexpected repairs, insurance damages, or TÜV costs. This planning certainty significantly facilitates budgeting. Additionally, administrative effort for fleet management, workshop appointments, and insurance processing is eliminated.
Quick availability
While new leased vehicles often have delivery times of 6-12 months, car subscription vehicles are frequently available within 2-4 weeks. This enables quick responses to personnel needs.
Ideal for test phases
Companies can test different vehicle models or drive types with short terms before making long-term leasing decisions. This is particularly valuable when converting to electric fleets.
Higher total costs
Car subscriptions are convenient but more expensive. Monthly rates are typically 15-25% above comparable leasing rates, as the provider prices in vacancy risk, administration, and service. With longer use (>24 months), leasing becomes cheaper.
Kilometer limitations
Subscription packages usually contain fixed kilometer contingents (e.g., 1,000 km/month). Additional kilometers cost extra (often €0.10-0.25/km). For field service employees with high mileage, this can become expensive.
Limited vehicle selection
While almost any model can be configured with leasing, subscription providers typically offer a limited fleet of pre-configured vehicles. Special requests are rarely possible.
Ideal scenarios:
Less suitable:
Providers in Germany:
Implementation:
Fuel vouchers and fuel cards are among the quickest and simplest mobility benefits. They support employees with fuel costs via tax-free benefits in kind and are available in various variants. The benefit is particularly attractive because it's uncomplicated to administer and provides immediate relief with daily mobility costs.
The different variants overview
Paper vouchers are the classic solution and work like traditional gift vouchers for individual gas station chains. They are physically issued and redeemed at checkout. Rechargeable fuel cards offer more convenience and function as prepaid cards for entire gas station networks. Employees can use them like a normal payment card, with the monthly budget loaded by the employer. Digital vouchers work app-based and enable paperless processing via smartphone. The most flexible solution are combined benefits-in-kind cards that can be used not only for refueling but also for shopping in supermarkets or drugstores.
Modern charging cards for electric vehicles follow the same principle. They enable access to public charging stations from various providers and are also billed via benefits in kind. Thus, EV drivers also benefit from this benefit.
Important legal framework
The central limitation is the monthly benefits-in-kind limit of €50. This amount can be granted tax-free and applies equally to gasoline, diesel, or electric charging. Carry-over of unused amounts to the following month is not possible – the benefit expires at month-end. Cash payouts are fundamentally excluded, as it must be a benefit in kind and not cash payments.
The cost framework for employers is clearly calculable. Up to €50 per employee can be granted tax-free monthly, corresponding to maximum €600 annually per person. These costs can be fully tax-deducted as business expenses, thereby reducing the company's tax burden.
The savings compared to a salary increase are considerable. A fuel voucher of €50 corresponds to about €70 to €75 gross salary, depending on employees' tax class and social security status. The reason lies in savings on payroll costs: employers save approximately 20 percent on social security contributions that would accrue with a regular salary increase. For employees, this means a significantly higher net advantage than with a comparable gross salary increase.
A practical example illustrates the efficiency: If an employer wants to provide employees with €50 net more, they would have to spend about €90 to €95 gross with a salary increase (including employer's social security contribution). With a fuel voucher, it's only €50 – a savings of around 40 percent.
Tax treatment of fuel vouchers follows the general benefits-in-kind regulation according to §8 Para. 2 Sentence 11 of the Income Tax Act. Up to €50 monthly, these benefits are completely tax and social security contribution-free. Prerequisite is that the fuel voucher is granted in addition to wages otherwise owed – salary conversions lead to loss of tax exemption.
Compliance with Payment Services Supervision Act
Stricter requirements have applied since 2022 through the Payment Services Supervision Act (ZAG). For vouchers and cards to continue being recognized as tax-free benefits in kind, they must meet one of two conditions. Option A is limitation to a specific network, for example a single gas station chain like Aral, Shell, or Total. Option B enables use at multiple providers but limits the product range exclusively to refueling or charging. Cards that are usable at both various providers and for arbitrary goods no longer count as benefits in kind but as payment means and thus lose tax exemption.
Avoid important pitfalls
The €50 limit is a threshold, not an allowance. This means: If the benefits-in-kind value exceeds €50 even slightly – for example at €50.01 – the entire amount becomes taxable, not just the exceeding cent. Multiple benefits in kind are added up. If an employee receives both a fuel voucher and other benefits in kind, the sum of all benefits in kind counts. Important: The public transport allowance according to §3 No. 15 EStG does not count toward the benefits-in-kind limit and can be granted in addition without problems.
Another pitfall concerns retroactive reimbursement. Since 2020: Employees can no longer refuel themselves and then have costs reimbursed. The employer must provide the fuel card or voucher directly. This regulation is intended to prevent abuse and ensure clear separation between benefits in kind and cash wages.
Combination advantage: Public transport allowances according to §3 No. 15 EStG do not count toward the €50 benefits-in-kind limit. An employee can thus simultaneously receive a Deutschlandticket (€59.85) tax-free via public transport allowance and a fuel voucher (€50) via benefits in kind – totaling €109.85 monthly tax-free.
Three implementation pathways with different effort
With paper vouchers, HR orders physical vouchers from gas station chains or voucher providers and distributes them monthly to employees. This method causes high manual administrative effort through ordering, storage, distribution, and documentation. Flexibility is low as employees are tied to specific gas stations. This solution is mainly suitable for small companies with few employees and low fluctuation.
Rechargeable fuel cards work via a framework agreement with a card provider like DKV, Shell Card, or UTA. HR loads cards monthly with the budget, employees refuel cashlessly. Administrative effort is medium-high, as billing must be checked and card blocks coordinated upon departure. Flexibility is medium to high, depending on the provider's gas station network. This variant is suitable for medium-sized companies with 20 to 200 employees.
Digital benefit platforms offer the most modern and efficient solution. Employees receive access to an app or digital benefits-in-kind card, choose themselves whether to refuel or shop, and the platform automatically handles tax-optimal billing. Administrative effort is minimal, as everything runs digitally and automatically. Flexibility is maximum because employees can freely decide what to use their budget for. This solution is suitable for companies of all sizes, especially when fairness and freedom of choice are important.
Best practices for successful implementation
Modern companies increasingly rely on digital benefits-in-kind cards instead of pure fuel vouchers. These offer employees real freedom of choice: The budget can be used for refueling or alternatively for shopping in supermarkets, drugstores, or other stores. An automatic €50 limitation ensures that the benefits-in-kind limit is not exceeded and tax exemption is maintained. This approach creates a fair solution also for employees without their own car who would otherwise not benefit from a pure fuel benefit.
The central challenge: Fairness
The biggest difficulty with fuel vouchers is unequal treatment. Not all employees own a car or drive regularly. Especially in large cities, many use exclusively public transport, bicycle, or walk. A pure fuel voucher would exclude this group and create dissatisfaction. Flexible benefits-in-kind cards that can alternatively be used in supermarkets or drugstores solve this problem elegantly. Thus, all employees benefit equally from the benefit, regardless of their mobility behavior.
With the increasing spread of electric vehicles, charging infrastructure is becoming a crucial mobility benefit. Companies can support their employees in two ways: through charging options at the workplace and through promoting home charging. Both approaches help establish e-mobility in the company and make it easier for employees to switch to electric vehicles.
Charging at workplace: The company charging solution
With workplace charging, the employer provides charging stations on company premises. Employees can charge free or at reduced cost during working hours—both company cars and private electric vehicles. This is particularly attractive for employees without their own charging option at home, such as in rental apartments without garage or parking space. Installing wallboxes on company premises creates a concrete incentive for switching to e-mobility and demonstrates the company's sustainability commitment externally.
Home charging (ZuhauseLaden): Promote private charging infrastructure
Home charging supports employees with charging at home and comprises three components. First, reimbursement of electricity costs for charging company cars at private outlets or wallboxes. Second, provision or subsidization of wallboxes that accelerate charging and are safer than normal household outlets. Third, covering installation and operating costs that arise when building private charging infrastructure.
Investment costs for workplace infrastructure
Acquiring a wallbox with 11 kilowatt charging capacity, which is often the standard for company charging infrastructure, costs between €500 and €1,500 per charging point. Installation causes additional costs of €500 to €2,000, depending on distance to grid connection, necessary excavation work, and any load management systems. With multiple charging points, costs per unit decrease through synergy effects. Ongoing electricity costs amount to about €6 to €8 per 100 kilometers mileage, based on average commercial electricity price of 30 to 35 cents per kilowatt-hour and consumption of 18 to 22 kWh per 100 kilometers.
Cost development for home charging: The change from 2026
Until December 31, 2025, employers can work with flat-rate reimbursement amounts for home charging of company cars. For pure electric cars, €70 monthly applies if no charging option exists at the employer, or €30 monthly with existing company charging infrastructure. Plug-in hybrids are reimbursed flat-rate with €35 (without employer charging option) or €15 (with employer charging option).
From January 1, 2026, these flat rates are eliminated without replacement. Instead, proof of actual electricity costs is required. This regulation change is based on a letter from the Federal Ministry of Finance and is intended to ensure more accurate billing of actually incurred costs. Documentation can be done via various means: through wallbox measurement technology that automatically records charging current, via separate electricity meters that exclusively measure charging current, through vehicle apps that log charged energy amount, or via mobile meters placed between outlet and charging cable.
Workplace charging: Comprehensive tax exemption until 2030
Workplace charging enjoys comprehensive tax exemption according to §3 No. 46 EStG, valid until December 31, 2030. Free or reduced charging current is completely tax-free for both company cars and private e-vehicles. This is an essential difference from home charging, where private vehicles are not subsidized.
Three prerequisites must be met for tax exemption:
Wallbox promotion: Transfer or ownership transfer
When employers provide employees with wallboxes for home, there are two tax-different variants. With temporary transfer, the wallbox remains employer property and is lent to the employee. Installation, maintenance, and operation are organized and paid by the employer. This constellation is completely tax-free according to §3 No. 46 EStG.
Alternatively, the employer can transfer wallbox ownership to the employee. This typically happens through a subsidy for purchase that employees make themselves. In this case, flat-rate taxation according to §40 Para. 2 No. 6 EStG applies. The employer can tax the grant at a flat rate of 25 percent and bear this tax themselves, so no burden arises for employees.
Home charging – Electricity costs: The transition from 2026
Tax treatment of electricity cost reimbursement for home charging of company cars follows §3 No. 50 EStG. Until December 31, 2025, both flat-rate reimbursements and documented actual costs were possible. However, since January 1, 2026, individual documentation is mandatory. The new regulation requires precise recording of kilowatt-hours consumed for charging the company car. This can be documented via four ways:
Documentation methods from 2026:
The determined kilowatt-hours are multiplied by current electricity price – either with the employee's individual tariff or with a recognized electricity price flat rate. This calculation yields the tax-free reimbursement amount.
Important limitation for private vehicles
Home charging of a private electric car is not tax-free reimbursable. Tax exemption according to §3 No. 50 EStG applies exclusively to company cars. Employers may only supply private e-cars of their employees with electricity tax-free at the workplace (§3 No. 46 EStG), not when charging at home. This distinction is important for communication with employees to avoid false expectations.
Building workplace charging infrastructure: Structured process
Implementing charging infrastructure at the workplace requires careful planning. The first step is a needs analysis: How many employees already drive electric vehicles? How many are planning purchase in the next two years? What vehicle types are used – private e-cars, company cars, plug-in hybrids? This information provides the basis for infrastructure dimensioning.
Location check follows as second step. Where are parking spaces located? How far is the nearest grid connection? Is existing connection capacity sufficient, or must the grid connection be strengthened? Is a load management system required to distribute available power to multiple charging points? An electrical specialist or specialized charging infrastructure provider should conduct a technical feasibility study.
Based on these findings, provider selection occurs. Established providers like Wallbox, ABL, Mennekes, Compleo, or The Mobility House offer complete solutions including hardware, installation, and maintenance. A comparison of offers should consider not only acquisition costs but also service scope, warranty services, and expandability.
Installation itself includes mounting wallboxes, electrical connection, integrating a load management system for multiple charging points, and connecting to backend systems for billing and monitoring. After successful installation, clear usage guidelines should be communicated: Who may use charging points? Is charging free or paid? How does authentication work? What rules apply to parking duration?
Final communication informs all employees about the new infrastructure, explains usage conditions, and actively promotes the benefit to foster e-mobility acceptance.
Home charging from 2026: Compliance with documentation requirement
The mandatory documentation requirement from 2026 requires new processes. Employers must decide which documentation method they recommend or require for their employees. Wallbox with integrated measurement technology offers the most convenient solution, as it fully automatically records charged kilowatt-hours and often transmits directly to cloud systems. This solution is particularly recommended for new installations.
For existing wallboxes without measurement technology, a separate electricity meter can be retrofitted. This requires one-time installation by an electrician but then delivers precise consumption data. Mobile meters are an inexpensive alternative but require manual reading and documentation by employees.
Early conversion to documentation-based systems is recommended, even though flat rates are still permissible until end of 2025. This avoids duplicate work with system change. Additionally, specialized service providers like Charge Repay Service, eCarUp, or Heycharge should be considered. These handle billing between employer and employees, automatically check documentation, and provide tax-compliant billing for payroll.
Best practice: Combination of workplace charging and home charging
The most effective solution combines both approaches. Employees with regular office presence benefit from workplace charging stations, which are tax-particularly attractive since private e-cars can also charge tax-free. Employees with high home office share or long commutes receive home charging support to ensure everyday usability of their electric company car. This combination maximizes usage rate of electric vehicles in the fleet and ensures that all employees are adequately supported.
Observe additionality criterion
Most tax advantages only apply if benefits are granted in addition to wages otherwise owed. Salary conversions often lead to loss of tax exemption. Companies should explicitly record additionality in employment contracts or company agreements to be safe during audits.
Strategically use benefits-in-kind limit
The monthly threshold of €50 is a real threshold, not an allowance. When exceeded, the entire amount becomes taxable. Multiple benefits in kind are added up, but public transport allowances according to §3 No. 15 EStG do not count toward the limit and thus offer an ideal combination.
Ensure documentation
Tax-free benefits must be recorded in payroll accounts. Public transport allowances belong in line 17 of the wage tax certificate as they reduce the commuter tax deduction. For home charging, complete documentation via measurement technology or vehicle apps is required from 2026. In case of uncertainty about tax treatment, requesting a ruling from the tax office is worthwhile. This binds the authority for the future and creates legal certainty.
Different mobility needs require flexible solutions. City dwellers benefit from public transport and micromobility, while suburban commuters prefer the Deutschlandticket or e-bikes. In rural regions, fuel and charging cards or general commuting allowances are needed. Remote employees require flexibility depending on presence days.
Fairness is crucial. For example, offering only a fuel card disadvantages employees without cars. Flexible mobility budgets that can be used for both refueling and other mobility create equality and offer the greatest freedom of choice. Everyone uses the budget according to individual needs, from public transport through carsharing to taxis.
Mobility causes 20 to 50 percent of company-wide CO₂ footprint, with commuting accounting for a significant share. With CSRD reporting obligations for large companies, measuring Scope 3 emissions will become mandatory in future. Mobility benefits offer measurable levers here.
Set sustainable incentives through higher budgets for public transport and micromobility, using the 0.25-percent rule for e-company cars, and actively promoting company bike programs. Carsharing options replace company cars for occasional users. Communicating individual CO₂ savings per employee creates awareness. Combined with gamification elements like team challenges, motivation increases. Integration into sustainability reports makes successes visible.
Digital platforms like NAVIT significantly reduce administrative effort and enable employee self-service, automatic tax optimization, and real-time billing. Integrated reporting functions automatically track usage and CO₂ savings.
Integration into existing HR and payroll systems like Workday, SAP, Personio, DATEV, or Sage is crucial for smooth processes. Single sign-on simplifies access. Mobile-first is standard with app-based booking, QR codes for public transport tickets, and integration into digital wallets like Apple Pay or Google Pay. This meets modern user expectations and increases acceptance among employees.
Many employees don't immediately understand the tax advantages of mobility benefits. Concrete example calculations help. A €50 mobility budget corresponds to about €70 gross salary increase, and employees freely choose how to use it. Info sessions, FAQs, and webinars create clarity.
Successful implementation starts with a pilot in selected teams or locations. Feedback is collected, processes iterated, and roll-out occurs with gained insights. Managers should act as early adopters and serve as role models, especially with sustainability goals. Success stories from colleagues are more authentic than any glossy brochure. Multipliers in the workforce are worth gold.
Total cost consideration includes direct costs for allowances and platforms, indirect costs for administration and IT, as well as savings on parking, fleet, and payroll costs. Public transport allowances and benefits in kind save 25 to 40 percent compared to salary increases, company bikes similarly. Mobility budgets replace company cars with 75 to 90 percent cost savings.
Usage rates should be continuously tracked. Which benefits are actually used? Where are there windfall effects? Adjustments based on data optimize both costs and employee satisfaction.
Germany offers a unique tax landscape for mobility benefits. The smart combination of various instruments – from mobility budgets through job tickets to e-company cars – enables companies to effectively support their workforce while optimizing costs.
Introducing mobility benefits is a strategic investment in employee satisfaction, talent acquisition, and sustainability – and in many cases also a more cost-effective alternative to classic salary increases.
Legal notice: This guide serves exclusively informational purposes and does not constitute tax or legal advice. Tax and legal treatment of mobility benefits can vary depending on individual cases. For binding advice, please consult a tax advisor or lawyer.
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