Holiday Pay Divides Germany’s Private Sector as Minijobbers Gain New Pension Freedom
07.06.2026 - 02:23:10 | boerse-global.de
Only 44 percent of employees in Germany’s private sector receive holiday pay, according to a study from the Wirtschafts- und Sozialwissenschaftlichen Institut (WSI). The decisive factor is collective bargaining coverage. In tarifgebundene companies, 72 percent of workers get the bonus. Where no union agreement exists, the figure drops to 34 percent.
The gap widens further depending on industry. In the metal and electrical sector, 69 percent of a monthly salary is typical for employees with 30 vacation days. Siemens pays 50 percent per holiday day, dm gives around 1,770 euros for full-time staff, and SAP has scrapped traditional holiday pay entirely in favor of performance bonuses ranging between 15 and 25 percent of base salary.
These disparities coincide with a series of legal and regulatory shifts that affect millions of workers, from minijobbers to career break takers.
New Pension Opt-In for Minijobbers Arrives in 2026
Starting 1 July 2026, employees in marginal-employment (Minijob) positions will for the first time be able to lift their exemption from mandatory pension insurance. The application can be submitted to the Minijob-Zentrale or directly to the employer. Choosing to pay contributions unlocks eligibility for rehabilitation services, disability pensions and the Grundrentenzuschlag top-up.
The employer’s share of contributions remains 15 percent in commercial settings and 5 percent in private households. Once decided, the election is binding for the duration of the Minijob.
Since January, the earnings ceiling has risen to 603 euros per month as the minimum wage climbed to 13.90 euros. For recipients of Arbeitslosengeld I, the existing 165 euro netto allowance stays in place, though higher earnings are now more likely to be offset against transfer payments. The 15-hour-per-week threshold for unemployment status is unchanged.
Austrian Ruling: Employers Cannot Unilaterally Deduct Vacation Days
A case from the Arbeiterkammer Oberösterreich illustrates limits on employer discretion. After terminating a delivery-service employee without proper notice, the company calculated her negative hours and deducted corresponding vacation days. The Arbeiterkammer secured a repayment of 1,963 euros for the worker.
AK-Präsident Stangl clarified that negative hours caused by low order volumes are impermissible, and employers cannot simply book vacation time at will.
Sabbaticals Reduce Vacation Entitlement
A ruling by the Bundesarbeitsgericht on 19 March 2019 (case number 9 AZR 315/17) made sabbaticals more attractive for companies. Aligning with the European Court of Justice, the court held that statutory leave entitlement is tied to actual work performed.
Employees on unpaid special leave do not accrue vacation days. This applies especially to full calendar years of unpaid sabbatical — no work obligation means no leave accumulation.
World Cup Viewing: No Automatic Right to Time Off
With the Football World Cup starting 11 June, labour lawyers remind employers that there is no legal entitlement to leave for matches. Watching games during working hours is prohibited if it impairs job performance, though brief glances at live tickers are generally tolerated.
