Entgeltumwandlung
Entgeltumwandlung is a tax model where employees convert gross salary into benefits like a job ticket, saving on taxes and social security contributions.
What is Entgeltumwandlung?
Entgeltumwandlung (salary conversion) refers to the conversion of gross salary into a non-cash benefit -- for example, a job ticket. The advantage: no income tax or social security contributions are owed on the converted amount. Both employees and employers save real money.
Entgeltumwandlung vs. Employer Subsidy
| Feature | Entgeltumwandlung | 100% Employer Subsidy |
|---|---|---|
| Who pays? | Employee (from gross salary) | Employer (fully) |
| Tax savings for employee | Yes (no income tax) | Tax-free per §3 Nr. 15 EStG |
| Social security savings for employer | Yes | No |
| Net cost for employee | Approx. €35--40 instead of €63 | €0 |
| Administrative effort | Medium | Low |
Entgeltumwandlung with Jobticket+
With Jobticket+ from TicketPlus+, companies can automate the Entgeltumwandlung process. Integration with over 50 HR systems (e.g. Personio, SAP, Workday) ensures minimal workload for HR departments.
Three models are available: 100% employer subsidy, Entgeltumwandlung, or Split Pay (hybrid model). Learn more on the Jobticket+ page or in the glossary.