Capital accumulation benefits
Capital accumulation benefits (Vermögenswirksame Leistungen, VL) for pay scale employees are paid in accordance with the collective wage agreement for the public sectors of the German states (Tarifvertrag für den öffentlichen Dienst der Länder, TV-L) and for apprentices of the German states in accordance with the collective wage agreement for trainees of the federal states (Tarifvertrag für Auszubildende der Länder in Ausbildungsberufen nach dem Berufsbildungsgesetz, TVA-L BBiG) Payment of accumulation benefits for civil servants, judges, professional and fixed-term soldiers fall under the act on capital accumulation benefits for civil servants, judges, professional and fixed-term-service soldiers (Gesetz über vermögenswirksame Leistungen für Beamte, Richter, Berufssoldaten und Soldaten auf Zeit, VermLG) combined with the fifth act on encouraging private asset formation (Fünftes Gesetz zur Förderung der Vermögensbildung der Arbeitnehmer, VermBG)
You are eligible for capital accumulation benefits (VL) if:
- you have entered a contract with a bank, insurance company, or a savings and loan association of your choice. This contract must comply with the requirements of the VermBG for employees in its current amendment. (The employer, or in the case of civil servants, the superior authority, is not responsible for verification thereof, but rather the respective institute or service provider is under obligation to provide information and advising);
- the employment agreement has a duration of at least 6 months;
- you have submitted the required information to the human resources department in written form. If these requirements are met, capital accumulation benefits can be paid retroactively for the 2 previous months. Retroactive pay may not carry over into the previous calendar year.
The VL amount is €6.65 per month for full-time employment. Part-time employees receive capital accumulation benefits in proportion to their regular working hours. Apprentices and trainees are eligible to VL payments of €13.29 per month.
In order to ensure the full amount of state savings bonuses (Arbeitnehmer-Sparzulage), employees may make a contribution from their own funds in addition to the employer’s or superior authority’s contribution.