Christmas bonus (Weihnachtsgeld) is a voluntary special payment by the employer – there is no statutory entitlement to it in Germany. However, a legal claim can arise from collective agreements, employment contracts, works agreements, or established company practice. According to the WSI Collective Agreement Archive, around 51% of all employees in Germany receive a Christmas bonus in 2025 – rising to 77% for those covered by collective agreements.

Definition: What is a Christmas Bonus?

A Christmas bonus (Weihnachtsgeld) is a special payment that employers provide in addition to regular wages – typically paid with the November salary. In German employment law, it is classified as a gratification, meaning a one-time payment made on a special occasion.

The term derives from its timing close to the Christmas holiday. Unlike regular salary, the Christmas bonus does not primarily serve as compensation for work performed. Instead, it can serve various purposes: rewarding employee loyalty, providing an incentive for continued employment, or offering additional recognition for work performed.

Important: A Christmas bonus is not identical to the so-called "13th month salary." While a 13th salary typically represents pure wage compensation, a Christmas bonus can have a so-called mixed character – rewarding both work performance and company loyalty. This distinction becomes particularly relevant in cases of termination.

Legal Basis: When Does an Entitlement to Christmas Bonus Exist?

In Germany, there is no statutory entitlement to a Christmas bonus. Whether employees receive one depends on various legal grounds.

Collective Agreement (Tarifvertrag)

The most common basis for entitlement is a collective agreement. According to the WSI Collective Agreement Archive, 77% of employees covered by collective agreements receive a Christmas bonus, compared to only 41% without collective bargaining coverage. Most major industries have provisions for annual special payments. The amounts vary significantly: from 250 euros in Bavarian agriculture to 4,235 euros in the chemical industry in North Rhine-Westphalia.

Employment Contract

An entitlement can also arise from an individual agreement in the employment contract. As an HR professional, pay close attention to the exact wording: if the Christmas bonus is formulated as a firm commitment, an enforceable claim arises.

Works Agreement (Betriebsvereinbarung)

In companies with a works council, a works agreement can regulate Christmas bonus payments. This then applies to all employees of the company.

Established Company Practice (Betriebliche Übung)

Particularly relevant in practice is the so-called "betriebliche Übung" (established company practice). This arises when employers pay a Christmas bonus unconditionally for at least three consecutive years. Employees can then derive a legal entitlement even without a contractual provision.

The Federal Labour Court clarified in 2023: A mere reference to the "voluntary nature" of the payment is not sufficient to prevent established company practice (Federal Labour Court, 23 January 2023, Case No. 10 AZR 116/22). Employers must expressly and unambiguously state that the payment does not establish any legal claim for the future.

Equal Treatment Principle

Under the employment law principle of equal treatment, individual employees may not be excluded from Christmas bonus payments without objective justification. If an employer pays a Christmas bonus to part of the workforce, other employees may also have a claim – unless there are objective reasons for differentiation.

According to Section 4(1) sentence 2 of the Part-Time and Fixed-Term Employment Act (TzBfG), part-time employees may not be excluded from payment. They are entitled to a pro-rata Christmas bonus corresponding to their working hours.

Christmas Bonus Upon Termination

What happens to the Christmas bonus when the employment relationship ends? The answer depends on the purpose of the payment and the contractual provisions.

Cut-off Date Clause (Stichtagsregelung)

Many employers tie the payment to a cut-off date clause: the entitlement only exists if the employment relationship is still in effect (and not under notice) on a specific date. Such clauses are generally permissible if the Christmas bonus is intended exclusively to reward future company loyalty.

Caution: If the Christmas bonus also serves to compensate work already performed (mixed character), a cut-off date clause may be invalid. The Federal Labour Court ruled in 2013 that employees may be entitled to a pro-rata payment in such cases (Federal Labour Court, 13 November 2013, Case No. 10 AZR 848/12).

Repayment Clause

Under certain conditions, employers can demand repayment of the Christmas bonus if employees leave the company shortly after payment. This requires a valid repayment clause.

The following limits apply to retention periods:

• For Christmas bonuses up to one month's salary: Repayment only possible if leaving before 31 March of the following year
• For higher amounts: Repayment possible until a maximum of 30 June of the following year
• For amounts under 100 euros: No repayment permitted

The decisive factor is the actual departure date, not the date of giving notice.

Amount and Prevalence in 2025

Current Statistics

According to the latest analysis by the WSI Collective Agreement Archive of the Hans Böckler Foundation (November 2025), 51% of all employees in Germany receive a Christmas bonus. However, the differences are considerable:

Industry Comparison

The amount of collectively agreed Christmas bonuses varies significantly. Top performers in 2025:

• Chemical industry North Rhine-Westphalia: 4,235 euros
• Energy supply NRW: 4,113 euros
• Confectionery industry Baden-Württemberg: 3,900 euros
• Private banking sector: 3,719 euros

At the lower end are Bavarian agriculture (250 euros) and the hospitality industry in some regions. On average, employees covered by collective agreements received 2,987 euros gross in 2024, according to the Federal Statistical Office.

Tax Treatment

Christmas bonuses are fully taxable. They are classified as "other remuneration" rather than regular wages. Income tax is calculated according to the annual wage tax table, which slightly mitigates the tax progression in the payment month.

Social security contributions also apply to the Christmas bonus – though only up to the respective contribution assessment ceiling. Employers automatically deduct both taxes and social contributions as part of payroll processing.

Good to know: Part of the Christmas bonus is protected from garnishment. Since 1 July 2025, the garnishment exemption limit for Christmas bonuses has been 780 euros.

Special Cases: Maternity Protection and Parental Leave

The Christmas bonus may not be reduced for absences during maternity protection. The European Court of Justice ruled that such a reduction violates the prohibition of discrimination.

The legal situation regarding parental leave is more nuanced: If the Christmas bonus serves exclusively to reward company loyalty, an entitlement exists even during parental leave. For performance-related Christmas bonuses, however, a pro-rata reduction may be permissible – provided this was contractually agreed.

Frequently Asked Questions About Christmas Bonus

Is there a statutory entitlement to a Christmas bonus in Germany?

No, there is no statutory entitlement to a Christmas bonus in Germany. A claim can only arise from a collective agreement, employment contract, works agreement, established company practice, or the equal treatment principle.

When does established company practice arise for Christmas bonuses?

Established company practice arises when employers pay a Christmas bonus unconditionally for at least three consecutive years. A mere reference to "voluntary nature" does not prevent established company practice – the exclusion of a legal claim must be expressly and clearly formulated.

Do I have to repay the Christmas bonus upon termination?

Only if a valid repayment clause was agreed in the contract and you leave before the agreed cut-off date. For amounts under 100 euros, no repayment is permitted. For Christmas bonuses with mixed character, a pro-rata entitlement may exist.

Do part-time employees also receive a Christmas bonus?

Yes, part-time employees may not be excluded from payment under Section 4 TzBfG. They receive the Christmas bonus on a pro-rata basis corresponding to their working hours.

Is the Christmas bonus taxable?

Yes, the Christmas bonus is fully subject to income tax and social security contributions. It is treated as "other remuneration" and taxed according to the annual wage tax table.

Can the employer reduce the Christmas bonus during sick leave?

Only if this is expressly agreed in the employment or collective agreement. Without such a provision, a reduction due to illness is not permissible. Note: A reduction during maternity protection is generally prohibited.

How do I formulate an effective voluntary reservation clause?

An effective voluntary reservation clause must be clearly and unambiguously formulated. Example: "This payment is made voluntarily and without acknowledgment of any legal obligation. Repeated payments do not establish any legal claim for the future."

What is the average Christmas bonus amount?

Employees covered by collective agreements received an average of 2,987 euros gross in 2024. The range spans from 250 euros to over 4,200 euros depending on the industry.

Conclusion

The Christmas bonus is an important special payment to which there is no statutory entitlement, but which can become a legal right through collective agreements, employment contracts, or established company practice. For HR professionals, it is crucial to use clear wording in contract design – particularly regarding voluntary reservation clauses, cut-off date rules, and repayment clauses.

Current figures show: Employees with collective agreements have significantly better chances of receiving a Christmas bonus (77% vs. 41%). As an instrument for employee retention, Christmas bonuses can strengthen employer attractiveness – provided the legal framework is observed.

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Sources

• Hans Böckler Foundation / WSI Collective Agreement Archive: "51 percent of all employees receive Christmas bonus, 77 percent with collective agreement." Press release, November 2025.
• Federal Labour Court (Bundesarbeitsgericht): Ruling on voluntary reservation clause, 23 January 2023, Case No. 10 AZR 116/22.
• Federal Labour Court (Bundesarbeitsgericht): Ruling on Christmas bonus upon termination (mixed character), 13 November 2013, Case No. 10 AZR 848/12.
• Federal Labour Court (Bundesarbeitsgericht): Ruling on established company practice, 26 June 1975, Case No. 5 AZR 412/74.
• Part-Time and Fixed-Term Employment Act (Teilzeit- und Befristungsgesetz – TzBfG), Section 4(1) sentence 2. https://www.gesetze-im-internet.de/tzbfg/
• Federal Statistical Office (Statistisches Bundesamt): Christmas bonus in collectively bargained companies 2024.
• IHK Munich: Fact Sheet on Special Payments. https://www.ihk-muenchen.de
• DGB Guide: Christmas Bonus. https://www.dgb.de/service/ratgeber/weihnachtsgeld/