Employers in Germany are required to pay more in certain specific situations. The major holidays of the year are approaching, and unfortunately, not everyone will be taking time off during these days.
Related topic: How much overtime is permitted in Germany
As compensation, they receive what is known as holiday pay. Here's what you need to know about it.
Should employers in Germany pay more for work on public holidays?
Unlike premiums for overtime and night shifts, employees do not have a legal right to extra pay for working on Sundays or public holidays. This also applies to Christmas.
In 2006, the Federal Labor Court ruled (Az.: 5 AZR 97/06) that holiday pay is not mandatory for employers. However, there are various ways for employees to be entitled to a supplement for working on Sundays and public holidays.
The right to additional pay on Sundays and public holidays can also be regulated by the provisions of a collective agreement. Company contracts may contain provisions regarding relevant supplements.
Furthermore, the right to additional pay on Sundays and public holidays can arise from what is known as company practice. The regular payment of supplements by the employer gives the employee a legal expectation that this compensation will continue to be paid.
The amount of extra pay for working on Sundays and public holidays varies depending on individual agreements:
- Some employers offer fixed rates;
- Others use percentages added to the hourly wage.
Additionally, some employers adjust the percentage of bonuses depending on the holiday. For example, holiday supplements may be higher on Easter Sunday than on Monday or higher on Christmas than on Gift Day.
Employees may receive tax-free bonuses for:
- Working on Sundays;
- Public holidays;
- Night shifts.
However, this is only the case if these bonuses are calculated individually based on the actual hours worked.
The Financial Court of Düsseldorf ruled that supplements paid at a fixed rate are subject to taxation.
Therefore, Isabelle Cloke from the Taxpayers' Association recommends that employees ask their employers to calculate these bonuses based on worked hours to avoid issues with the tax authorities.
Related topics:
Despite not having a legal right to extra pay, some employers in Germany offer supplements for working on Sundays or public holidays, which may be negotiated in company contracts or established through company practice. Meanwhile, salaries in Germany are a topic of interest, with potential changes affecting certain individuals starting from 2024.
