Skip to content

Understanding Weihnachtsgeld: Who Qualifies for Germany’s Christmas Bonuses?

Christmas bonus in Germany

Christmas bonus in Germany. Benefits in Germany. The Christmas bonus in Germany, known as Weihnachtsgeld, is extra money many employees get at the end of the year. Statistics show that about 55% of all workers receive this bonus. It is usually paid into employees’ accounts in November. But who can get Weihnachtsgeld, and what rules are there about this payment? Here’s what you need to know.

Christmas bonus in Germany – What is Weihnachtsgeld?

The Christmas bonus is an extra payment given to employees on top of their regular salary. It is usually paid with the November salary, but some companies split it into two parts—one in November and the other in December. The bonus amount varies based on several factors, including collective labor agreements and company policies. In the past, employees could expect a full month’s salary as a Christmas bonus, but now companies often pay between 45% and 90% of the average monthly salary.

Does the employer have to pay Christmas Eve allowance?

German labor law does not require employers to pay a Christmas bonus. However, employees may have a right to this bonus under certain conditions. These conditions include collective labor agreements, internal company agreements, or specific terms in employment contracts. Additionally, employees may gain the right to a Christmas bonus through established company practices (betriebliche Übung).
Read also: What November 2024 Brings: Major Changes in German Laws and Daily Life

If an employer regularly pays bonuses, even without formal contract terms, employees can expect to receive them in future years after three years. For instance, if a company has paid a €1,000 Christmas bonus for three consecutive years, employees are entitled to claim that same amount from the fourth year onward.

How to avoid the obligation to pay?

To avoid the legal obligation of paying Christmas bonuses in the future, employers can include a voluntary clause (Freiwilligkeitsvorbehalt). This clause states that the bonus is a one-time payment and not a regular part of the salary. It’s essential for this clause to be clearly written to ensure its legal effectiveness. Additionally, employers can reserve the right to withdraw the bonus (Widerruf), meaning that even if the bonus is mentioned in the contract, the company can take it back in the future under certain conditions.

Who receive Christmas bonus?

When deciding on the Christmas bonus, employers must follow the principle of equal treatment for employees. This means that all employees or all members of a specific job group should be treated the same. However, some differences are allowed. For instance, an employer may choose not to give a bonus to higher-paid employees while providing a bonus to those with lower earnings as financial support during the Christmas season.
Read also: Families in Germany to Receive Up to €1,300 Per Child Next Year: What to Expect

Another factor that can influence the Christmas bonus is the length of service. Employees who have been with the company longer may receive larger bonuses compared to new hires. For example, an employee with 10 years of service might get a bonus equal to 100% of their monthly salary, while a new employee hired in January would not receive a bonus in their first year but could get 45% of their salary in the second year.

How much is the Christmas bonus in Germany

The amount of the Christmas bonus (Weihnachtsgeld) varies by industry. Last year, it ranged from an average of 380 euros for temporary workers to 5,733 euros in the oil and gas extraction sector, according to Tagesspiegel.de.