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Half of Germany’s Workers Get a Christmas Bonus With Wide Gaps by Collective Agreement

Collective bargaining coverage is the strongest predictor of who gets a bonus and how large it is.

Overview

  • A new WSI/Hans Böckler Foundation survey of about 58,000 workers reports that roughly 51% will receive a year‑end payment, typically in November.
  • Receipt is far more common in tariff-bound workplaces (77%) than in non-tariff settings (41%), reflecting a broader decline in collective bargaining coverage to about 49% in 2024.
  • Payouts vary sharply by industry and region, from about €250 in Bavarian agriculture to €4,235 in North Rhine–Westphalia’s chemical sector, with high amounts also in energy (NRW), confectionery (Baden‑Württemberg), Westphalian textiles, private banks, and Deutsche Bahn.
  • The bonus is fully taxable and subject to social contributions as a ‘sonstiger Bezug,’ which often leaves workers with a noticeably smaller net amount than the gross figure suggests.
  • A legal right exists only via a collective or individual contract or through ‘betriebliche Übung’ after three consecutive years, and a Federal Labor Court ruling (Az. 10 AZR 116/22) has limited employers’ unilateral cuts in certain cases; some sectors with tariff agreements still pay no bonus, such as building cleaning.