Tax Treatment of Group Personal Accident Insurance (Wage Tax, Salary Certificate)
The tax treatment of employer-funded group personal accident insurance governs whether and when contributions count as wages: in Germany the inflow depends on whether employees have a direct claim, and wage tax may be levied at a flat rate of 20 % under section 40b (3) EStG; in Switzerland employer contributions to collective supplementary UVG insurance need not be declared on the salary certificate; in Austria contributions for future security are tax-free up to EUR 300 per year.
Germany: Inflow and Flat-Rate Taxation
Employer contributions to group personal accident insurance are wages within the meaning of section 19 EStG where employees have their own entitlement to benefits. Where the insured person has a direct claim, wages accrue when the contribution is paid. Where the exercise of rights rests exclusively with the employer (no direct claim), the contributions are not wages when paid; only when an insurance benefit is paid out are the contributions paid for that person since the start of the employment deemed to have accrued, capped at the amount of the benefit. The portion of the contribution attributable to occupational accidents is partly tax-free as incidental travel expenses; absent other evidence, the contribution for 24-hour cover is split equally between the occupational and private spheres. Alternatively, the employer may levy wage tax under section 40b (3) EStG at a flat rate of 20 % (plus solidarity surcharge and, where applicable, church tax) if several employees are jointly insured under one contract; the former threshold of an average contribution of no more than EUR 100 per person per year has been abolished from the 2024 assessment period (status of legislation September 2026).
Switzerland: Salary Certificate
Employer contributions to compulsory accident insurance under the UVG (BUV and NBUV) and to collective supplementary UVG and daily sickness benefit insurance taken out by the employer need not be declared under the salary certificate guidelines (item 7) and are not taxable for the employee. NBU premiums deducted from salary are deducted under “contributions AHV/IV/EO/ALV/NBUV”, whereas employee premiums for supplementary UVG insurance are not deductible.
Austria: Future Security
Employer premiums for accident insurance under which employees are beneficiaries are in principle a benefit from employment. They remain tax-free under section 3 (1) no. 15 lit. a EStG 1988 as contributions for future security up to EUR 300 per employee per year, provided they are granted to all employees or to defined groups of employees; where the employer alone is the beneficiary, there is no benefit. All statements reflect the legal position as of September 2026 and do not replace tax advice.