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Germany Sees Continued Drop in Vacation Pay for Private-Sector Workers

WSI's latest analysis links falling vacation pay to limited collective bargaining coverage, exposing regional, gender and company size disparities.

Der Anteil der Beschäftigten der Privatwirtschaft in Deutschland, denen Urlaubsgeld ausgezahlt wird, ist verglichen mit dem Vorjahr gesunken. Der Wert lag bei 44 Prozent, wie das Wirtschafts- und Sozialwissenschaftlichen Instituts (WSI) mitteilte
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Overview

  • Only 44% of private-sector employees in Germany received vacation pay in 2025, down from 46% in 2024 and 47% in 2023.
  • Employees at companies bound by collective bargaining agreements are nearly twice as likely to get vacation pay, with 72% coverage versus 34% at non-tariff firms.
  • Workers in West Germany receive vacation pay more often than those in the East, with 46% coverage compared to 33%.
  • Larger firms are more generous with vacation pay, as 59% of workers at companies with over 500 employees receive bonuses compared to 36% at firms with fewer than 100 staff.
  • Men are more likely than women to receive vacation pay (48% versus 39%), and payouts vary sharply by sector, ranging from around €200 in agriculture and hospitality to €2,820 for wood and plastics workers in West Germany.