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Trainer allowance 2024: How should it be applied in clubs?

The trainer allowance is the most common way to show appreciation to active members. In this article, you’ll find out how much the trainer allowance will be in 2024.

spized | Club management

September 12, 2024 |

Whats’ on this page

1. What is the trainer allowance?

2. Trainer allowance: Changes and increases since early 2021

3. What are the advantages of the trainer allowance?

4. How does the Ehrenamtspauschale work in 2024?

5. What happens if a trainer earns more than €3,000?

6. Is it worth adjusting the allowances in the club?

7. Trainer allowance 2024: How should clubs manage payments to coaches?

8. Higher revenue limits make club management easier

9. Summary of the trainer allowance 2024

What is the trainer allowance?

The trainer allowance is designed to offer a tax benefit to part-time workers, such as trainers, instructors, or caregivers. The legal regulation recognizes and promotes involvement in cultural or sports clubs by allowing tax-free income up to a maximum amount. This tax-free benefit is regularly adjusted by lawmakers. In 2024, the trainer allowance is set at €3,000 per year, which translates to €250 per month. To benefit from the trainer allowance, the activities must be carried out in areas recognized as charitable.

What does this mean in practice for volunteers?

If you take advantage of the trainer allowance, you won’t need to pay taxes on the income earned up to the established limit. This financial advantage benefits both you and the club, as the club is also exempt from paying social security contributions.

Trainer allowance: Changes and increases since early 2021

On January 1, 2021, the trainer allowance increased from €2,400 to €3,000. This amount is social security-free for both sides – gross equals net. Artistic activities and the care of people in need of care are also included under this rule. The term "part-time job" is clearly defined by law: the activity must not exceed one-third of the working time of a comparable full-time job, which equals about 10 to 15 hours per week.

What are the advantages of the trainer allowance?

Since the trainer allowance is exempt from social security contributions, it is particularly appealing to certain groups, such as students or job seekers. These individuals are unable to easily earn social security-free income, which makes voluntary involvement in clubs more attractive. Combining this with a mini-job (set at €538 per month in 2024) creates an interesting scenario for both clubs and trainers. The club pays €250 in trainer allowance (social security-free) and €538 for a mini-job, resulting in approximately 30% social security charges and around 2% tax. The helper earns €788 per month – tax-free! One more notable aspect of the trainer allowance in 2024 is that there is no requirement regarding the payment schedule. This means that if you’re involved in a temporary project (such as a specific sports course), you can receive the €3,000 over three or six months. Amateur athletes also benefit from this increase, as their payments are subject to the same law.

In summary, the trainer allowance 2024 brings the following benefits:

Volunteers earn income exempt from social security.
It is particularly attractive to certain groups, such as students, retirees, or job seekers.
Combining the trainer allowance with a mini-job offers many people a lucrative additional income (up to €788 per month).
Amateur athletes (performance-based or victory bonuses) also benefit from the increased trainer allowance.

However, note that certain positions like groundskeepers, equipment managers, board members, or first responders are excluded from this regulation. These positions fall under the Ehrenamtspauschale, which we will discuss in the next section.

How does the Ehrenamtspauschale work in 2024?

Since January 1, 2021, the Ehrenamtspauschale has increased from €720 to €840 annually, or €70 per month. Up to this amount, the compensation remains social security-free, with gross equaling net. The Ehrenamtspauschale applies to all individuals who are not trainers but still contribute to the club, such as board members, stewards, groundskeepers, and equipment managers.

As with the trainer allowance, there is no fixed time frame within which the Ehrenamtspauschale must be paid. This is useful for various projects, such as creating a new club website, as it allows clubs to offer financial incentives to encourage participation. Clubs can pay up to €840 in such cases – ideally, with the recipient confirming their use of the allowance in writing.

By the way: The trainer allowance and the Ehrenamtspauschale can be combined! If a club has a second chairman who is also a trainer, the club can pay a total of €3,840 without social security charges.

What happens if a trainer earns more than €3,000?

Many clubs wonder how to handle amounts exceeding €3,000. Essentially, only the amount exceeding €3,000 is subject to tax. If the trainer is registered as a mini-jobber, about 30% of the earnings are subject to social security contributions, which include 15% for pension insurance, 13% for health insurance, and 2% for other taxes. For €538 per month, this amounts to €161.40.

Is it worth adjusting the allowances in the club?

Ultimately, this depends on the budget and income available. Most clubs did not increase membership fees when the trainer allowance was raised. If no additional income is available, the club's expenses should remain at the same level. While the increased allowance provides more flexibility regarding social security-free expenditures, the Ehrenamtspauschale still remains a small financial incentive over the course of the year. Volunteers typically engage in these activities for reasons other than financial gain. Nevertheless, applying the new Ehrenamtspauschale might show greater appreciation from the club.

Trainer allowance 2024: How should clubs manage payments to coaches?

Many clubs strive to fairly distribute the trainer allowance among their various trainers. It is certainly a well-intentioned idea to pay each trainer the same allowance – after all, most clubs have uniform membership fees for all members. Such a principle of solidarity tends to promote a positive atmosphere within the coaching teams, reducing conflict and potentially fostering greater cohesion within the club.

However, not all club structures are equipped to pay identical trainer allowances, especially when trainers work with different age groups or competitive levels. In performance-oriented clubs, the workload and the required expertise for junior or senior teams are significantly higher. Many trainers expect recognition or compensation for their qualifications, as well as the additional time (more training sessions and matches) they invest. In such structures, it is difficult or even impossible to offer the same trainer allowance to all coaches. Many performance-oriented trainers have also obtained licenses, which often involve substantial financial costs. In these clubs, the trainer's qualification plays a critical role in determining the amount of the allowance. If a club focuses purely on recreational sports and is not performance-oriented, then a solidarity-based principle for the trainer allowance can be considered.

Higher revenue limits make club management easier

Every club is considered a commercial entity, primarily financed by membership fees. When additional revenue, such as food, drinks, or sponsorship income, is generated, the club is initially pleased with the extra financial flexibility. However, the government has set a revenue limit of €35,000, above which income taxes must be paid. This revenue threshold has now been raised to €45,000, providing an additional €10,000 per year.

Profits above this threshold are subject to what is called "Ertragssteuer" (profit tax), which includes corporate tax and trade tax. The VAT (Umsatzsteuer) is not included. The trade tax exemption remains unchanged at €5,000.

By the way: The obligation to spend financial resources promptly, or to provide proof of reserves, has been abolished. This is particularly advantageous for clubs with less than €45,000 in annual revenue. Less bureaucracy and greater flexibility will certainly benefit all clubs.

Summary of the trainer allowance 2024

The trainer allowance was raised from €2,400 to €3,000 on January 1, 2021.
The trainer exemption is free from social security contributions for both sides.
The €3,000 can be paid out flexibly within a year and is not tied to monthly payments.
The trainer allowance can be combined with a registered mini-job. Groundskeepers, board members, and equipment managers are excluded. Here, the volunteering allowance applies.
The volunteering allowance was also raised from €720 to €840 per year, and this financial support is also not tied to monthly payments.