The average Christmas bonus paid to employees covered by collective agreements will amount to 2,747 euros (gross) in 2022. That is an increase of 2.6% compared with 2021 (2,677 euros).
In western German states, around 59 percent of employees get a Christmas bonus, while just 39 percent of employees in former East German states are lucky enough to get a payout. Similarly, while 57 percent of men receive Weihnachtsgeld, just 51 percent of women do.
So, on average those receiving a holiday bonus can expect to receive around 5% of their salary in pay. Usually, employers who offer holiday bonuses give between $100 to $5,000, but considering a bonus is still a gift there is no standard amount that is awarded.
The inflation relief bonus, called Inflationsausgleichsprämie in German, is a bonus meant to incentivize employers to pay their employees additional compensation. The payment is free from social security costs and is viable from 26 October 2022 to December 31, 2024.
It's not necessarily mandatory for most employers to provide the 13th salary but if they do it's usually passed out in December. The 13th salary in Germany is very common, but it depends on the type of contact an employee has.
The German government allows employers to grant an inflation bonus of up to 3.000€ over the year 2023 – 2024 to employees.
From January 1st, 2023, you will receive € 250 per month for each child – regardless of whether it is your first, second or third child. Important: You will not receive Child Benefit for children who do not live with you. An example: You have three children, but only the two younger children live with you.
How much child benefit will I receive? The child benefit is paid monthly, usually directly into the parent's bank account or in cash. The same amount is paid to everyone, regardless of the parents' income. As of 2023, the amount is fixed at 250 euros per month per child, no matter how many children you have.
If the employer has sufficient funds, he will be able to reward his employees. The Labor Code does not specify how much you must work to receive the Christmas bonus. A new employee, employed in the company for a few months, for example, may receive a discretionary allowance – everything is in the hands of the employer.
2. Basic tax-free allowance. The basic tax-free allowance (Grundfreibetrag) ensures that you only pay income tax on your annual income above a certain threshold. In 2021 the basic tax-free allowance is 9.744 euros and will be increased to 10.347 euros in 2022.
If your business has a more hierarchical structure due to differences in seniority or roles, a salary percentage bonus might be the best option. Many small businesses find that by offering a bonus of 1.5 percent of the annual wage, this affords their staff an additional one- or two-weeks extra pay for the holidays.
Whether or not an employer pays a Christmas bonus is entirely up to them. However, it is generally seen as good practice to show your employees some extra appreciation at this time of year.
Although it is the Christian festival commemorating the birth of Jesus Christ, Christmas is also celebrated by Germans who do not profess any faith – by 78% in all. Celebrating Christmas is an important family tradition for most people. Roughly one in four Germans go to church at Christmas.
Salary negotiations in Germany
The issue of compensation can come up during a job interview already, but salary negotiations commonly begin when an employer extends a job offer with an attached salary proposal. The applicant can either accept that offer or try and make demands for higher compensation.
Who gets a Christmas Bonus? A Christmas Bonus is paid to people getting long-term social welfare payments.
In 2022, the Christmas Bonus will be double your normal weekly long-term social welfare payment.
Overall average salary in Germany in 2023
After taxes (42%), the average salary in Germany in 2022 stood at around €28,570 per annum and €2,380 per month.
This is an allowance (also called a Child Benefit) from the German government to help defray some of the cost of raising children. It can run from €204 to €235 per child per month, and is usually made by a fund transfer into a German bank account.
The maternity benefit is a maximum of €13 per day, i.e. a maximum of €390 per month.
How much parental allowance will I receive? The minimum amount of parental allowance is 300 euros and the maximum amount is 1.800 euros monthly. You can use this calculator (in German) to work out how much parental benefit you will receive.
From January 2023, the maximum amount of the Child Allowance is to increase from the previous 229 euros to 250 euros per child, per month. This has been designed to mitigate the additional burdens on families due to inflation.
All families receive child benefit (Kindergeld), regardless of their income. It is generally paid for all children up to the age of 18. If your child is unemployed, child benefit is paid until they turn 21. If your child is undertaking vocational training, you will receive child benefit until they reach the age of 25.
Child benefit is a financial support paid out automatically by Försäkringskassan to parents resident in Sweden who have children under the age of 16. The child benefit is SEK 1,250 per month and is paid out on the 20th of every month. If you have more than one child you get a child benefit supplement.