Every November, millions of employees in Germany receive an additional payment that marks the beginning of the festive season: the Weihnachtsgeld, or Christmas bonus. But not everyone is entitled to it, and the rules behind who receives it — and how much — are more complex than many expect.
How common is Weihnachtsgeld across Germany?
Data from the WSI-Tarifarchiv of the Hans Böckler Foundation shows that slightly more than half of the German workforce — around 51% — receives a Christmas bonus.
Unlike paid sick leave or annual leave, which are statutory rights, the Christmas bonus is not guaranteed by German labour law. Its payment depends entirely on contractual arrangements, either through collective agreements or individual employment contracts.
The role of collective agreements
Employees working under tariff-based collective bargaining agreements have a significantly higher chance of receiving Weihnachtsgeld. If the collective agreement covering a company includes a Christmas bonus, employers are obliged to pay it for the entire duration of the agreement.
This system makes workers covered by trade union negotiations twice as likely to receive a bonus compared to those working under individual contracts.
Individually negotiated bonuses: more flexible but less secure
When the Christmas bonus is agreed individually — without any collective bargaining framework — the rules differ.
Employers may decide each year whether they will pay the bonus or not. However, a crucial principle applies:
- If an employer pays Weihnachtsgeld for three consecutive years, it becomes an established entitlement.
- From that point forward, the company is required to continue paying it, unless the employment contract explicitly states otherwise.
How bonus amounts are typically calculated
There is no uniform nationwide standard for the value of the Christmas bonus. Because companies are not legally required to offer it, amounts vary widely across industries, seniority levels and internal policies.
In many cases, the bonus is calculated as a percentage of the employee’s monthly salary. The percentage can differ substantially, even among colleagues in the same workplace. One employee may receive the equivalent of 25% of their monthly wage, while another may receive 55%.
In some industries, the amounts can be considerably higher. According to IG Metall, certain workers in the metal and steel sectors receive up to 110% of their monthly salary as Weihnachtsgeld.
Seniority and entitlement periods
Where the Christmas bonus is explicitly included in the employment contract, eligibility usually begins after six months of employment. The amount often increases with length of service, reaching its maximum after about 36 months with the same employer.
Transparency rules for unequal bonus payments
Because employers maintain discretion over both the decision to pay a bonus and the amount, differences between employees can and do occur. According to guidance from health insurance provider TK, when bonuses vary,
companies must clearly disclose the objective criteria used to determine different payment levels.
A long-standing tradition shaped by agreements, not law
The Christmas bonus remains a valued benefit in Germany, but one shaped entirely by contractual arrangements rather than statutory rights. Whether an employee receives it — and how much — depends on a combination of collective agreements, seniority, internal policy and employer commitment.
For workers hoping to understand their own entitlement, the most important step is simple: check your employment contract and any applicable collective agreement.
