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13th month pay
in Germany.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES German / English

PAYROLL TAX 20.66%

PAYROLL CYCLE Monthly

TIME TO HIRE 48 hours

Is there a 13th month pay in Germany?

Yes there is. However, unlike other European 13th month pay, in German there is a legal distinction made between a 13th month payment and a Christmas bonus. The 13th month pay is salary, whereas the Christmas bonus (14th month) is a special bonus intended to pay additional holiday expenses.

How is the 13th month pay calculated in Germany?

13th month pay in Germany will be the amount of a full month’s of wages as a year-end bonus.

When is the 13th month salary paid in Germany?

The 13th month pay is paid in Germany at the end of the year, which is at the end of December.

Does the 13th month salary amount to any extra payment by the employer?

It depends on the structure of the employment contract. However, in Germany, typically the 13th month pay amount is an extra payment by the employer.

Is the 13th month salary taxable in Germany?

Yes, 13th month pay in Germany is taxable.

Hiring in Germany, Made Easy

Your business can easily hire employees in Germany without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

In Germany, 13th month pay is not required, but it is an expected standard.

Yes. In Germany there is a legal distinction between 13th month pay and the Christmas bonus. Both bonus payments are expected annually as a standard in Germany.

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