The employee savings allowance is an instrument to promote the accumulation of wealth among employees. According to the fifth capital formation law and through preferential treatment according to § 19a of the income tax law, it is currently structured as follows:
All employees whose income does not exceed a certain limit (€ 17,900 for single people or € 35,800 for married couples) can receive an employee savings allowance. The employee savings allowance is a state allowance for capital-building benefits, which employees can invest in certain types of investment that are considered by law to be eligible for support. For building loan and savings contracts, for example, allowances of 10% of the savings amount are granted, up to a maximum of € 480.