Value credit
Value credit is accumulated remuneration set aside for later paid release from work, for instance for a sabbatical, care leave or early retirement.
As of:September 2026
When a time account becomes value credit
Not every time account is value credit. The rules in sections 7b et seq. SGB IV apply where there is a written agreement, the credit is to be used for release from work, and the employment relationship continues in the meantime.
A flexitime account settled within a few months does not fall under them. An account on which people save for a sabbatical over years very much does.
What hangs on it
The credit is kept in money, not in hours, and social security contributions have to be taken into account. The contributions only fall due in the release phase, not while saving; that is the real advantage of the model.
Above all, though: from a certain size the credit has to be protected against insolvency (section 7e SGB IV), for instance through a trust model or a pledge model. A mere provision in the accounts is not enough, and the protection has to be demonstrated to the employees.
MetronHR works these figures out itself: time accounts, premiums, overtime and the limits of the German Working Hours Act, with every booking.
What happens on a change of employer
Where the employment relationship ends without the credit having been used, it can be transferred to a new employer or handed over to the German Federal Pension Insurance (section 7f SGB IV). Otherwise it is dissolved and settled subject to contributions.
Common mistake
A long-term account grown over years gets kept without the insolvency protection under section 7e SGB IV being set up. In an insolvency the credit is then lost, and those responsible are personally liable.
Further reading
- Section 7b SGB IV, section 7c SGB IV, section 7d SGB IV
- Section 7e SGB IV (insolvency protection), section 7f SGB IV (transfer)
This is not legal advice; for a specific case at your workplace you are better off asking someone qualified to give it.
Published by: AMNAU GmbH
Editorial responsibility: Ugur Aydogan, Product development.
Last reviewed: September 2026
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Related terms
Working time account
A working time account records how many hours somebody is above or below the agreed working time. The balance is settled over a defined period, through time off or through payment.
Time credit
Time credit is the positive balance of a working time account: hours worked above the target time that have not yet been offset by time off or payment.
Cap limit
A cap is the agreed maximum or minimum value of a working time account. When it is reached, a defined consequence applies, for instance payment, transfer, or a ban on further extra work.