Expense allowance yes – social security contributions no?
Social security obligation despite voluntary work? A court provides clarity
Can volunteers in a non-profit museum receive a small expense allowance without having to pay social security contributions? This is precisely the question that the State Social Court of Hesse had to decide – and the result is pleasing for associations and volunteers.
The case: Museum assistance for little money
In a small museum run by a non-profit organization, several helpers took turns performing simple tasks: They opened the museum, collected admission and coordinated guided tours. For their work, they were paid €5 per hour, i.e. €30 per day of work – a payment that was intended as an “expense allowance”.
The sticking point: there were no written contracts, no instructions and no regular working hours. Nevertheless, the pension insurance company demanded social security contributions – on the grounds that this was employment subject to compulsory insurance.
The verdict: Voluntary work remains voluntary
On 23 January 2025, the State Social Court of Hesse ruled clearly in favor of volunteers (case no. L 1 BA 64/23). Anyone who volunteers in a non-profit context and only receives a small lump sum to cover expenses is **not** subject to social security contributions.
The reasoning: The activity was clearly motivated by ideals, the small compensation only served to cover travel costs or meals – and not to generate an income.
The court was also not convinced by the pension insurance company’s reference to the €720 per year tax allowance for voluntary work. The decisive factor was that the activity remained unpaid in character – and that was the case here.
What this means for associations and volunteers
- No social security contributions if the activity is clearly voluntary and idealistic.
- Flat rates are permissible as long as they clearly relate to expenses.
- Documentation helps: A brief written agreement can avoid later discussions.
Our tip for the practice
Nevertheless, associations should check for each activity whether it is really an honorary position, especially if regular payments are made. However, if you volunteer and only receive a small amount of compensation, you usually don’t need to worry about social security contributions.
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