Workplace health promotion

Since 2008, employers have been able to take advantage of the new regulation under Section 3 No. 34 of the German Income Tax Act (EStG) and promote the health of their employees. This is a tax allowance for workplace health promotion, which originally had an amount of € 500 per employee per year. This amount was increased by the legislator to €600 on 01.01.2020.

Background to the tax allowance

One of the most common illnesses of employees in offices is back pain. This is mostly due to the working conditions, which require constant work in a sitting position. In addition, performance pressure, stress and lack of exercise further worsen health. This is often followed by sick leave of the employee up to total loss of working capacity.

That is why many employers try to prevent the health of workers through preventive measures. This usually includes a back training program in which employees can participate. The employer covers the cost of this. Whereas in the past the employer had to pay tax on these costs to the tax office, today the employer is directly relieved by the new regulation.

This is because the Federal Fiscal Court has ruled that these measures no longer qualify as remuneration for employees, but as a preventive measure. By reducing back pain among employees, this also reduces absenteeism. In this way, the employer saves costs in the long term due to less absenteeism.

In addition, the employer can also use the health promotion subsidies for external measures. These include, for example, inviting and engaging external health experts. However, this tax allowance only applies as long as a full salary is paid. Thus, the subsidy cannot be applied as a fringe benefit.

The health promotion measures

The new health promotion scheme allows employers to promote the health of employees. This includes employees, 450 € jobbers, shareholders and managing directors. What counts as health promotion measures is regulated by the health insurance funds in § 20 SGB V. These are divided into two main points.

1. measures to improve the general state of health

• Exercises and tasks that reduce physical inactivity and thus prevent health risks.
•  Provide tips on nutrition to prevent malnutrition or malnutrition. At the same time, they should reduce existing excess weight.
• Exercises to reduce stress and have a relaxing effect. The aim is to help people cope better with stress and reduce illnesses caused by stress.
• Measures that reduce the consumption of addictive substances. These include promoting non-smoking and reducing alcohol consumption.

2. measures that serve to promote health in the workplace

• Adjustment of the load at the workplace, which includes the lack of movement and the protection of the musculoskeletal system.
•  Catering at the workplace, which includes healthy canteen food, consideration of employees‘ wishes, training of kitchen staff and nutrition campaigns.
• Avoiding stress and psychosocial strain, which is achieved by training personnel management in the form of employee leadership and stress management.
• Reducing the consumption of addictive substances through smoke-free operations and campaigns against alcoholism.