Lohnwerk Berlin
Lohnwerk Berlin GmbH optimizes payroll and tax-free employee benefits for German SMEs via its PayAward Mastercard benefit card and advisory services, serving over 5,000 customers with a methodology validated by the Bundesfinanzhof.
- Company typePrivate
- Founded2011
- HeadquartersBerlin, Germany
- Headcount1–10
- GTM typeB2B
- OfferingServices
What Lohnwerk Berlin does
Lohnwerk Berlin GmbH is a German compensation optimization and employee benefits firm founded in 2011 by Sebastian Arendt and headquartered in Berlin. The company restructures salary packages for small and medium-sized enterprises (SMEs) into tax-advantaged and tax-free components, claiming employees can realize up to 40% higher net income without incremental employer cost. Its core product is PayAward, a company-branded prepaid Mastercard-based Sachbezugskarte (tax-free benefit card) providing up to EUR 71 per month per employee, combined with supplementary benefits including occupational pension, sick pay, parental benefits, and child illness coverage. Adjacent services include Lohnkostenoptimierung (payroll cost optimization), Betriebliche Zusatzleistungen (supplementary benefits), and Administrative Unterstützung (compliance, monitoring, and payroll-software integration).
The underlying technology stack comprises a cloud-based client server for encrypted and traceable document exchange, process automation that propagates individual data changes across the compensation stack, and a monitoring/documentation system backed by integrated tax and legal expert opinions for audit (Betriebsprüfung) defense. Two wholly-owned subsidiaries — Lohnwerk Versorgungswerke GmbH (pensions and supplementary benefits) and LW Agentur UG (agency services) — extend the platform into adjacent operating businesses.
The commercial model is performance-based: Lohnwerk charges a percentage of the economic benefit achieved, making the service cost-neutral for the employer if no benefit is generated. Go-to-market combines direct B2B sales (free initial consultation and concept presentation) with a referral channel through a decade-built network of German tax consultants, specialized lawyers, and auditors. The firm reports having served over 5,000 customers, operates two wholly-owned subsidiaries from the same Berlin address, and employs approximately 40 specialists across the four relevant legal domains. Lohnwerk claims its entire methodology has been confirmed by the German Federal Court of Finance (Bundesfinanzhof), which it positions as a unique regulatory validation in the German market.
Lohnwerk Berlin firmographics
Firmographics- Name
- Lohnwerk Berlin
- Legal name
- Lohnwerk Berlin GmbH
- Website
- https://lohnwerk.com
- Company type
- Private
- Founded year
- 2011
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Lohnwerk Berlin GmbH optimizes payroll and tax-free employee benefits for German SMEs via its PayAward Mastercard benefit card and advisory services, serving over 5,000 customers with a methodology validated by the Bundesfinanzhof.
- Ownership category
- akta.pro rank
Lohnwerk Berlin industry classification
Industry- Product category
- Employee Benefits and Payroll Optimization Services
- NAICS
- Professional Employer Organizations (561330), Payroll Services (541214), Accounting, Tax Preparation, Bookkeeping, and Payroll Services (54121)
- SIC
- Services-Employment Agencies (7361), Services-Help Supply Services (7363)
- akta.pro primary industry
- Benefits Administration & Total Rewards Outsourcing (BPACAKAE)
- akta.pro secondary industries
- Payroll & Employment Tax Services (BPAHABAD), Embedded Payroll, Earned Wage Access & Benefits Finance (FSAGALAI)
Keywords
Where Lohnwerk Berlin is headquartered
LocationHeadquarters
- HQ city
- Berlin
- HQ country
- Germany
- HQ region
- Europe
Offices2 records
Markets served
Lohnwerk Berlin business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others
Revenue model
- Performance-Based Fees: The company works on a cost-neutral basis for clients through a percentage participation in the economic benefit achieved. If no economic benefit is generated, no fee is charged. The service is always more cost-effective than traditional salary increases.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Outcome Based/ Performance | Pay-as-you-go | Performance-based fee structure with no upfront costs |
Go-to-market motion2 records
Distribution channels2 records
Marketing channels3 records
Lohnwerk Berlin product offering
Product offeringCore offering
Lohnwerk Berlin provides wage cost optimization and employee benefits services for German companies, combining tax-advantaged and tax-exempt salary components to deliver up to 40% more net income to employees without increasing employer payroll costs. Its flagship PayAward product is a company-branded prepaid Mastercard providing up to 71 EUR per month in tax-free benefits, layered with occupational pension, sick pay, parental benefits, and child illness coverage. The service is delivered through free initial consulting, a Bundesfinanzhof-confirmed methodology, and a network of integrated tax advisors, lawyers, and auditors.
Product overview
Lohnwerk Berlin offers a unified platform of wage optimization and employee benefit services. The core product is PayAward, a branded prepaid Mastercard providing tax-free monthly benefits up to 71 EUR per employee, combined with supplementary benefits including occupational pension, sick pay, and parental benefits. This is supported by Lohnkostenoptimierung (wage cost optimization achieving up to 40% more net income), Betriebliche Zusatzleistungen (company supplementary benefits), and Administrative Unterstützung (compliance and payroll integration services). The company serves over 5,000 customers with over 12 years of experience in payroll optimization.
Differentiator
Problem solved
Functional benefit
Products and services
- PayAward A prepaid Mastercard-based benefit card with company branding that provides employees up to 71 EUR monthly as tax-free benefits (Sachbezug). Combines maximum salary development with exclusive benefits including company pension, sick pay, parental benefits, and child illness coverage. Targeted at German employers seeking to differentiate employer branding and increase employee net income.
- Lohnkostenoptimierung (Wage Cost Optimization) Wage cost optimization service that increases employee net income by up to 40% through restructuring of tax-advantaged and tax-exempt salary components. Includes legal compliance verification, social security optimization, and a free consultation and concept presentation. Available to German SMEs and mid-market employers seeking to optimize payroll costs without raising gross salaries.
- Betriebliche Zusatzleistungen (Company Supplementary Benefits) Company supplementary benefits service bundling occupational pension, supplementary sick pay, parental benefits, and child illness coverage. Builds employer identification and strengthens employee loyalty through tangible benefits. Marketed as a Germany-unique model combining guaranteed company pension with supplementary social benefits.
- Administrative Unterstuetzung (Administrative Support) Administrative support service handling tax law compliance, monitoring of implemented measures, payroll software integration, and automated processing of individual data changes. Includes documentation, monitoring, and audit accompaniment (Pruefungsbegleitung), backed by an integrated network of tax advisors and lawyers. Serves over 5,000 customers with over 12 years of automation-driven experience.
Quantifiable outcome
- Up to 40% more net income for employees through tax optimization
- +3 more outcomes
Companies that use Lohnwerk Berlin
Customer profileNamed customers1 record
Segments2 records
Ideal customer profiles2 records
Lohnwerk Berlin technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration1 record
Feature4 records
Lohnwerk Berlin partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core.
- Network of Tax Consultants (Steuerberater)coreA continuously growing network of tax consultants who form the tax-secure foundation of Lohnwerk's daily work. They provide expert opinions confirming the legality of implemented measures.
- Network of Lawyers (Rechtsanwälte)coreA continuously growing network of specialized lawyers who provide expert opinions confirming the legality of implemented measures, particularly in labor law matters.
- Network of Auditors (Wirtschaftsprüfer)coreA continuously growing network of auditors who contribute to the holistic legal assessment and provide expert opinions on implemented measures.
Scale indicators6 records
Recent moves6 records
Expansion highlights4 records
Lohnwerk Berlin competitors and assessment
Company assessmentRegional players
- Haufe Group: Major German provider of HR, tax, and legal information plus software/services for payroll and benefits administration—adjacent to Lohnwerk on benefits outsourcing for the German market.
Broad incumbents
- Edenred: World-leading prepaid corporate benefits platform (Ticket Restaurant, mobility, etc.) with established presence in Germany; competes in adjacent benefit-card categories to PayAward.
- Pluxee: Sodexo's spin-off specializing in employee benefits and engagement across multiple geographies, comparable to Lohnwerk on employee benefit delivery mechanisms though broader and more global.
- Sodexo Benefits & Rewards: Global incumbent in employee benefits and rewards (meal vouchers, gift/incentive cards), overlapping with Lohnwerk's benefit-card and tax-free component distribution at much larger scale.
Others
- DATEV: Dominant German cooperative providing payroll, tax, and accounting software used by virtually all Steuerberater; relevant as enabling infrastructure for any wage optimization like Lohnwerk's. (Note: website may serve as relationship partner rather than direct competitor.)
Emerging players
- Personio: HR and payroll software platform headquartered in Germany and serving European SMEs, potentially able to bundle tax-optimized salary components—a credible emerging threat to Lohnwerk's integration advantage.
- Probonia: German consulting firm specialized in tax-optimized salary structures and employer benefits, providing overlapping advisory services to SME employers in the same niche Lohnwerk serves.
Direct peers
- givve: German employee benefits card issuer (Mastercard-based) serving SMEs and corporates, offering tax-free and tax-advantaged salary components—overlapping directly with PayAward's product/scope.
- Spendit: Germany-based provider of prepaid Mastercard benefit cards and tax-free salary conversion for employers, head-to-head with Lohnwerk's PayAward on employee benefits cards and net-pay optimization for SMEs.
- Belonio: German startup offering a Mastercard-based benefits account for tax-free employee benefits, narrowly competing with Lohnwerk's PayAward on the SME end of the market.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights6 records
Customer concentration
Lohnwerk Berlin financial estimates
Financial estimateRevenue estimate
Valuation estimate
Lohnwerk Berlin leadership team
Management profileNumber of profiles
Profiles4 records
Lohnwerk Berlin subsidiaries and ownership
Company hierarchySubsidiaries2 records
Lohnwerk Berlin funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Lohnwerk Berlin M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Lohnwerk Berlin
What does Lohnwerk Berlin do?
Lohnwerk Berlin provides wage cost optimization and employee benefits services for German companies, combining tax-advantaged and tax-exempt salary components to deliver up to 40% more net income to employees without increasing employer payroll costs. Its flagship PayAward product is a company-branded prepaid Mastercard providing up to 71 EUR per month in tax-free benefits, layered with occupational pension, sick pay, parental benefits, and child illness coverage. The service is delivered through free initial consulting, a Bundesfinanzhof-confirmed methodology, and a network of integrated tax advisors, lawyers, and auditors.
Is Lohnwerk Berlin a public or private company?
Lohnwerk Berlin is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Lohnwerk Berlin founded?
Lohnwerk Berlin was founded in 2011. It employs 1 to 10 people.
Where is Lohnwerk Berlin based?
Lohnwerk Berlin is headquartered in Berlin, Germany, in the Europe region.
How does Lohnwerk Berlin make money?
One revenue line is on record: performance-Based Fees.
Who are Lohnwerk Berlin's main competitors?
Haufe Group is listed as a regional player. Broad incumbents are Edenred, Pluxee and Sodexo Benefits & Rewards. DATEV is listed as an others. Emerging players are Personio and Probonia. Direct peers are givve, Spendit and Belonio.
Does Lohnwerk Berlin have an API?
No public API is recorded for Lohnwerk Berlin.
What industry is Lohnwerk Berlin in?
Lohnwerk Berlin's product category is Employee Benefits and Payroll Optimization Services. Its primary akta.pro industry code is BPACAKAE, Benefits Administration & Total Rewards Outsourcing, with a secondary code of BPAHABAD, Payroll & Employment Tax Services. Its NAICS code is 561330 and its SIC code is 7361.