Celebrating Festive Season? Only 44% of German Workers Get a Paid Break
Approximately four in ten employees receive holiday pay in this context.
Facebook Twitter Whatsapp E-Mail Print Copy Link Half of private-sector employees in Germany can't relish a paid holiday, according to a study. A mere 44% receive this special perk, as per the Institute for Economic and Social Science Research (WSI) of the trade union-affiliated Hans-Boeckler-Foundation, unveiled on Tuesday.
Those working in a union-agreed company have a brighter chance. Here, around 72% of workers get a paid break.
"On average, salaries are typically higher in union-bound companies than those not bound," explains WSI wage expert Malte Lübker. Holiday pay in union-agreed companies varies widely. According to WSI's evaluation of collective agreement archives, it ranges from 186 euros for agricultural workers in Mecklenburg-Vorpommern to a staggering 2820 euros for wood and plastic process industry workers in Westphalia-Lippe tariff district. Holiday pay usually depends on union-agreed wages, though some areas pay a flat rate.
"Where high union-agreed wages are paid, holiday pay is also significantly higher," says Thorsten Schulten, head of WSI's collective agreement archive. Conversely, in the traditional low-wage sectors, both the holiday pay and the chance of receiving it are usually lean due to low union-agreement coverage.**
"Legal requirements, employer policies, industry norms, government rules, and taxes all play a role in vacation benefits," adds Schulten. Employees are entitled to at least 20 days of paid vacation per year, not counting public holidays[1][4]. Part-timers receive leave proportionally[4]. Collective agreements can increase the minimum holiday entitlement, negotiated between employers and unions and varying significantly across industries and regions[4]. Employers may offer more vacation days, while some companies provide annual leave purchase schemes for flexibility[1][4]. Government regulations and taxes apply to holiday pay[3].
In conclusion, holiday pay in Germany's private sector is affected by several factors - legal requirements, collective agreements, employer policies, industry norms, and government regulations and taxes. Union-agreed companies tend to pay more holiday pay and have higher coverage.
- Integrating science and workplace-wellness initiatives can potentially improve employee health and wellness, which could lead to increased productivity and better overall job satisfaction, thereby contributing positively to a company's business and finance objectives.
- As per the study, employment in union-agreed companies often correlates with higher salaries and better benefits, such as extended holiday pay, which can create a healthier and happier work environment that contributes to workplace-wellness and business success.
- Considering the results of the study, industries and regions with higher union-agreement coverage might benefit from implementing science-based health and wellness programs as part of their employment packages, thereby creating a more conducive and productive work environment that aligns with the principles of modern business practices.
