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Jan 5, 2024 · The main types of bonuses in Germany are the Christmas bonus, holiday pay, and performance-related bonuses. Allowances to salary can be given for working under challenging conditions, during weekends, shift work, and other cases. § List of Main Allowances and Bonuses in Germany. Christmas bonus (Weihnachtsgeld); Christmas bonus or 13th-month bonus Although German compensation laws do not require a 13th-month bonus, many employers choose to give employees an extra month's wage at the end of the year. However, under certain collective agreements, employees who have worked all 12 months of the year may be entitled to receive a month's salary as a year-end ... Feb 12, 2024 · Tax implications of Christmas bonuses. Christmas bonuses (Weihnachtsgeld) in Germany are subject to both taxation and social security contributions, which can impact the final amount received by employees. Key tax and social security points. Christmas bonuses are treated as part of an employee’s taxable income. Yes there is. However, unlike other European 13 th month pay, in German there is a legal distinction made between a 13 th month payment and a Christmas bonus. The 13 th month pay is salary, whereas the Christmas bonus (14 th month) is a special bonus intended to pay additional holiday expenses. Dec 6, 2023 · Annually, numerous employees in Germany eagerly anticipate their Christmas bonus (Weihnachtsgeld). In 2023, the projection for this special payment is an average of around 2,809 euros gross, indicating a modest increase of approximately 2.3 percent compared to 2022. Nov 13, 2024 · Christmas bonus Germany 2024. Work in Germany. Christmas bonuses in Germany are a welcome boost for employees, not only spreading holiday cheer but also helping with holiday expenses. This extra payment provides relief to many households during a high-spending season on gifts and celebrations. Christmas Bonus - Taxes and Social Contributions. Since the abolition of the Christmas bonus allowance with the implementation of the Tax Reform Act of July 25, 1988, the Christmas bonus is no longer tax-free. From a tax perspective, it is considered another income under § 39b (3) of the Income Tax Act (EStG). Dec 5, 2023 · 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 ... Nov 16, 2022 · 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.

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