Many will soon receive their Christmas bonus, eagerly awaited for purchasing gifts, tree decorations, and festive food.
Related topic: Is there a Christmas bonus during maternity leave in Germany
The Christmas season involves significant expenses, making it pleasant to see the bonus indicated in the payroll. When exactly will the Christmas bonus be credited? There is an answer to this question.
For many, the Christmas bonus will be paid in December.
This year, more than half of Germany's employees will receive Christmas bonuses. Given the high cost of living, financial injections come just in time.
When exactly does the Christmas bonus hit the account?
For many, this shouldn't take too much time. Typically, the Christmas bonus is transferred along with the November salary. Therefore, the money should be in the account at the end of November or the beginning of December—just in time for Christmas.
Now, it remains to find out who can expect this pleasant holiday bonus?
According to the German Press Agency (dpa), employees who have entered into collective agreements receive the Christmas bonus primarily. This is because they usually can expect a special payment in November or December.
However, there is no general right to a Christmas bonus. Therefore, employees should first check whether the special payment is regulated in their employment contract.
It is also worth considering a specific nuance. The full amount of the Christmas bonus will not end up in the personal account. The reason is that the Christmas bonus must be fully taxed.
Since it is a one-time payment falling under the category of "Other Benefits," income tax is calculated using the annual income tax table. The situation is certainly unpleasant, but it is something to accept.
In Germany, most employers strive to pay their employees the Christmas bonus in December. Usually, the bonus arrives in the first half of the month.
So, the wait is almost over. For most Germans, these funds will indeed help improve their financial situation a bit and allow them to truly celebrate Christmas.
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The Christmas bonus will typically be transferred along with the November salary for many employees, ensuring it's available by the end of November or beginning of December. Some employees may not be entitled to a Christmas bonus unless it's mentioned in their employment contract, as it's not a universal right in Germany.
