Christmas bonuses in 1997

According to figures from the WSI research institute, about five million employees had to accept cuts in their collectively agreed Christmas bonus in 1997.

According to a recent study by the Institute for Economics and Social Science (Wirtschafts- und Sozialwissenschaftliches Institut, WSI), about 90% of all German employees covered by a collective agreement receive a collectively agreed Christmas bonus (Weihnachtsgeld). However, there are large differences in the amount of Christmas bonus in the various sectors, with sums varying between 100% of one month's pay in banking and a flat-rate payment of a few hundred DEM in sectors like agriculture - the table below provides more detail by sector.

In comparison with 1996, more than five million employees have been affected by cuts in Christmas bonuses in 1997. In many sectors, the trade unions agreed to a reduction in the Christmas bonus in return for safeguarding 100% continued payment of remuneration in case of illness (DE9709131F). The latter has become necessary after the Government issued a new law on continued payment of remuneration in case of illness in 1996, which provides a minimum of only 80% payment. For example, in branches such as chemicals, printing or paper processing, the Christmas bonus has been reduced from 100% to 95% of a monthly income in order to compensate for the cost of 100% continued payment of remuneration in case of illness.

Comparing western and eastern Germany, employees in some sectors in eastern Germany still receive a lower Christmas bonus than their western colleagues. In a few sectors like the construction industry or private transport, east German employees still get no Christmas bonus at all.