Great news for millions of workers in Germany! In November, they will receive a significant salary bonus. The money will be transferred to their accounts along with their monthly salary. Every second employee in Germany will receive this financial reward, making it the most anticipated bonus of the year, according to experts.
New Year's bonus for employees, payout in November.
In November of this year, millions of workers in Germany will have the opportunity to receive additional funds in their accounts. It is in this month that the so-called "Christmas bonus" (Weihnachtsgeld) arrives, serving as a kind of gift before Christmas. According to the German Trade Union Federation (DGB), 54 percent of workers in Germany receive this bonus annually.
Especially those working under collective agreements can expect additional funds in their accounts, a recognition of their efforts and dedication. It's worth noting that the bonus amount depends mainly on the industry of employment, meaning employees in different sectors may receive different amounts of additional Christmas bonuses. This is undoubtedly additional financial support, bringing Christmas spirit in early November.
The Christmas bonus Weihnachtsgeld is NOT a legally guaranteed bonus. However, there are industries where employees always receive a bonus, although its amount may vary each year. Usually, Christmas bonuses are paid in industries where workers' rights and the amount of monthly compensation are determined by collective labor agreements or company agreements made in consultation with trade unions.
Typically, collective labor agreements stipulate that the holiday bonus should be equal to the monthly salary, which is why in many sectors Weihnachtsgeld is colloquially referred to as the thirteenth salary. According to the Federal Statistical Office, around 90 percent of employees covered by collective agreements in Germany received a Christmas bonus in 2022.
In companies where employees are not covered by collective agreements, the payment of a Christmas bonus is at the discretion of the employer, but there are situations where an employee has the right to demand it. According to the German Labor Code, the principle of equal treatment of workers applies. This means that employers cannot refrain from paying Christmas bonuses to certain workers. This applies to workers employed in so-called minor employment (Minijob) as well.
Previously, employees received 100 percent of their monthly salary as holiday bonuses. Today, companies usually opt for a special payment ranging from 45 to 90 percent of the average monthly salary. According to the Federal Statistical Office, in mid-November 2022, the average amount of the Christmas bonus in Germany was 2747 euros.
Due to different collective agreements, payments vary significantly. In the contracts considered, Christmas bonuses ranged from 5504 euros (in the oil and gas sector) to the minimum value of 327 euros received by temporary workers.
Christmas bonus in private companies in Germany.
In companies not bound by a collective labor agreement, less than half of the employees receive Christmas bonuses. Last year, approximately 42 percent received the bonus.
Taxation of Weihnachtsgeld.
The thirteenth salary, Christmas bonus, discretionary bonuses, and profit-sharing are taxed in Germany on the same basis as the monthly salary. Bonuses paid in the form of gift vouchers or in any non-monetary form are not subject to taxation.