Considering a job ticket rather than a salary increase: Is it a viable alternative?
During a salary negotiation, have you thought about requesting perks beyond a salary hike? This could offer you more room for maneuvering, and it has other benefits.
If you're getting ready for a salary negotiation with your manager, you might want to change the focus of the discussion if it's getting tough. You could steer it towards work extras, like a job ticket.
Workers can gain tax advantages if their employer pays their annual passes for public transportation (ÖPNV) through a salary conversion and pays a fixed tax.
As Daniela Karbe-Geßler from the German Taxpayers' Association points out, "Even though a salary increase is subject to taxes and social security contributions, a job ticket remains tax-exempt." This rule applies even if the Germany ticket becomes more expensive the following year. This fixed tax on the job ticket can lower your gross income, thereby reducing your tax burden. Employees with personal tax rates over 15% or 25% can benefit significantly from this. If the employer covers the tax, it's even more beneficial at higher tax rates.
Employers may also offer a tax-free Bahncard 100
However, this is contingent upon the ticket being paid in addition to the current salary. This means the subscription should not be converted from salary. Although the commuter allowance for the distance between home and work is reduced for employees who receive the tax-free extra, Karbe-Geßler explains that the tax-free grant is still more advantageous in total. If the employer pays the extra salary flat tax, the commuter allowance is not reduced.
"In general, a job ticket is particularly beneficial if the commute or private trips are regularly made by ÖPNV or if the employee's allowance of 1,230 euros is not surpassed," says Karbe-Geßler.
Additionally, an employer can also grant a Bahncard 100 tax-free, but this is only possible if it's primarily used for business trips.
During the salary negotiation, you could propose a professional perk like a tax-exempt job ticket or a tax-free Bahncard 100, which might offer significant tax advantages. Even at higher tax rates, employees can benefit greatly from these perks, especially if they often commute or have business trips by public transportation.
