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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 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 ... 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. 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. 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 Salary under German labour law (without minimum remuneration) The amount of an employee´s wage (remuneration, salary) is agreed between the employee and the employer before the beginning of the employment. 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 ... 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). Oct 22, 2024 · Christmas bonus in Germany. Benefits in Germany. The Christmas bonus in Germany, known as Weihnachtsgeld, is extra money many employees get at the end of the year. Statistics show that about 55% of all workers receive this bonus. It is usually paid into employees’ accounts in November.

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