Since May 2023, the new 49-euro ticket (officially the "Deutschlandticket") allows unlimited, nationwide use of all local public transport (IC/ICE/EC not included). Under certain conditions, employers can grant a subsidy or fully cover the cost as a tax- and social-security-free job ticket. If the employer pays a minimum subsidy of 25% of the cost based on the issue price, the issue price is also reduced by a further 5%.
No Salary Conversion
It is important, however, that a subsidy or the assumption of the total costs is provided in addition to the wages owed in any event. Only then can the ticket be granted tax- and social-security-free by the employer. In particular, there must be no salary conversion and no offsetting against agreed bonuses.
Where the ticket is granted free of tax and social security contributions, the employee must reduce the commuter allowance (Entfernungspauschale) by the benefit derived from the ticket. Alternatively, the employer can tax the subsidy or cost assumption at a flat rate of 25%. In that case, the employee retains the full commuter allowance.
At least in theory, the monthly 50-euro exemption limit for benefits in kind can also be used to grant the 49-euro ticket free of tax. This may be done free of tax and social security contributions even as a salary conversion, and no offset against the commuter allowance applies. It should be noted, however, that only 1 euro per month then remains for further benefits in kind to employees. This may represent a risk: if previously unrecognised benefits in kind are uncovered during a tax audit, they may then become fully subject to tax and social security contributions.
Note
Note: In 2023 and 2024, the commuter allowance is generally 0.30 euros per kilometre for the one-way distance between home and the primary place of work (i.e. only the outbound trip). From the 21st kilometre onwards, an increased rate of 0.38 euros per kilometre applies — this remains in force through to and including 2026.