19 Employee benefits exempt from income tax: Who actually uses the benefits and how to use them wisely?

In the world of tax deductions, everything seems beautiful and simple. The list of income tax-exempt benefits often looks like a convenient catalog of savings designed to make lige easier for employees and employers. However, behind each relief there is one important question—do we really know what is offered and how we can make the most of it?

Tax deductions are not just numbers on paper; they are tools we can use to create a better working environment and empower our employees. But, as with everything in life, it depends on whether you choose to take advantage of them or let them collect dust in legal acts. Let’s take a look at which benefits are tax-exempt and how they can work in your favor.

List of Exemptions: What’s Behind the Numbers?

1. Daily allowances for domestic business trips – Up to 18€. Sounds modest? Perhaps it is, but every euro saved at the end of the year can make a significant difference in the employer's budget.
2. Daily allowances for international travel – These are aligned with the level of state budget users. These allowances can facilitate business travel, but only if you know the rules of the game.
3. Field allowance – Up to 100€ per month if accommodation and meals are not provided. This is a great way to compensate employees for the discomfort of working away from home.
4. Allowance for separate living – Up to 100€ per month. It may sound like a small amount, but for many families, this is significant support.
5. Solidarity assistance – Up to 1,500€ in the event of the employee's death or a family member's death, or up to 1,000€ for medical treatment. When times are tough, this financial aid can be a crucial relief.
6. Severance pay upon retirement – Up to 1,500€, allowing employees to retire with at least a small sense of security.
7. Severance pay due to technological surplus – Three average salaries. This is not just financial support but also a message to employees that they are not forgotten when they become "redundant."
8. Scholarships and loans – Up to 200€ per month. Funding for education and staff development.
9. Newborn child allowance – Full support for parents during the challenging early days. Don't forget to apply for this allowance!
10. Awards for students and pupils – Support for young people, their achievements, and future careers. A great way to motivate employees and their families.
11. Employee education – Costs related to training directly linked to the employer's activities. This is an investment in people, not an expense.
12. Nutritional allowance for amateur athletes – Up to 300€ per month, helping athletes develop and stay active.
13. Unemployment benefits – Paid from non-budgetary funds. This support gives time and space for a fresh start.
14. Compensation for work-related accidents – According to court decisions or settlements. While no one wishes to face this, it’s important to know that support exists.
15. Union social assistance – From union membership fees, serving as an additional safety net for workers.
16. Gifts for employees' children – Up to 50€ annually per child under 15. Small gestures that mean a lot.
17. Jubilee awards –150€ for 10 years of service, 250€ for 20 years, and so on. This way, employers appreciate their employees' loyalty.
18. Allowances for the military of montenegro and international missions – Up to the amounts specified by the Government. Important support for those serving in demanding circumstances.
19. Lifetime allowances for athletes and cultural creators – Tax-exempt under the law, as they are the pride of every society.

What Changes from January 1, 2025?

Starting in 2025, new amendments will further improve the situation:

• Scholarships and Loans – The tax-exempt amount rises to 300€ per month, meaning more funding for education. Until December 31, 2024, the amount is 200€ per month.
• Newborn Child Allowance – Up to 1,000€, providing significant support for parents.
• International Women’s Day Allowance – Up to €100 annually, tax-exempt. A recognition and symbolic support for women in the workplace.
• Nutritional Allowance for Amateur Athletes – Doubled to 600€ per month, representing a strong incentive for the development of sports.

Conclusion: Use Deductions Wisely

These deductions are not just there to fill legal pages—they are real support that can make a difference in business. It is crucial to stay well-informed and make the most of what the law allows. At the end of the day, by using these tax deductions wisely, everyone can benefit—both employers and employees.