Current for 2026•As of: July 2026

Holiday Pay Calculator Calculate Net Amount.

Calculate your net holiday pay by tax class – as a percentage of salary or a fixed amount

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Holiday Pay Calculator

Enter your gross holiday pay or estimate it as a percentage of your monthly salary – calculate the net payout by tax class.

Entry-level salary

0 EUR15,000 EUR
%
0 %100 %

Tax details

9% church tax

Personal details

0 10

Childless people under 23 pay less long-term care insurance

No legal entitlement

Holiday pay is not required by German law. Whether and how much is paid depends on your collective bargaining agreement, company agreement, or employment contract. In the German public sector (TVöD), there has been no separate holiday pay since the 2005 collective agreement reform — it is part of the annual special payment (Christmas bonus) paid in November. This calculator provides an estimate based on typical rates — not tax or legal advice.

Net holiday pay

€577.63

€1,050.00 gross

Breakdown of the gross amount

  • Net(55 %)€577.63
  • Income tax(23.2 %)€244.00
  • Social security(21.7 %)€228.37
Gross holiday pay€1,050.00
./. Income tax− €244.00
./. Solidarity surcharge− €0.00
./. Social security− €228.37
Net holiday pay€577.63

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Holiday pay: no legal entitlement, but widespread

Basis, prevalence and typical amount

Holiday pay is not required by law in Germany. An entitlement only arises if it results from a collective bargaining agreement, a company agreement, or the individual employment contract. In exceptional cases, "company practice" can also establish an entitlement if an employer has made the payment unconditionally for at least three consecutive years.

According to the WSI collective bargaining archive, around 44% of all employees in the private sector currently receive holiday pay — 73% with collective bargaining coverage, only 35% without a collective agreement. Company size also plays a role: in large companies with 500+ employees, the rate is 61%, in small companies with fewer than 100 employees it is only 37%.

No separate holiday pay under TVöD (German public sector)

In the German public sector (TVöD), there has been no separate holiday pay since the 2005 collective agreement reform — it is part of the annual special payment (Christmas bonus) paid in November.

How much is holiday pay usually?

The amount of holiday pay varies significantly by industry: according to the WSI collective bargaining archive, the collectively agreed holiday pay in the middle pay grade ranges between around €186 and €2,904 (2026). It is often paid as a percentage of the monthly salary, typically 25–50%.

Example collectively agreed holiday pay by industry

  1. Chemical industry (full-time): ≈ €1,200: Shift workers €1,320, apprentices €700
  2. Construction industry (skilled worker, pay group 3): ≈ €2,105: 93 × collectively agreed hourly wage, after 12 months of continuous employment

How holiday pay is taxed

Holiday pay is taxed — just like a Christmas bonus — as "other remuneration" (§ 39b para. 3 EStG). Income tax is calculated using the annual table with the difference method: the employer calculates the annual income tax once without and once with the special payment — the difference is the tax on the holiday pay. In addition, social security contributions (health, pension, unemployment and long-term care insurance) apply, since holiday pay — unlike severance pay — is remuneration subject to social security contributions.

Important: The one-fifth rule (§ 34 EStG) does not apply to holiday pay — it is only relevant for extraordinary income such as severance payments.

Example: €3,000 monthly gross salary, tax class 1, €900 holiday pay (30%)

Example: €3,000 monthly gross salary, tax class 1, €900 holiday pay (30%)
ItemAmount
Gross holiday pay€900.00
Income tax (difference method)− €192.00
Social security− €195.75
Net holiday pay≈ €512.25

Holiday pay vs. Christmas bonus

Holiday pay
Usually paid before the main holiday season (spring/summer).
Christmas bonus
Usually paid in November, often the higher of the two payments.

Note: This calculator provides an estimate based on typical rates and the statutory rules for other remuneration. Whether and how much holiday pay is paid is determined solely by your collective bargaining agreement, company agreement, or employment contract. For a binding calculation, please contact your payroll department or a tax advisor.

Frequently asked questions about holiday pay

Entitlement, amount and taxation explained

No. There is no statutory entitlement to holiday pay in Germany. An entitlement only arises if it results from a collective bargaining agreement, a company agreement, or the individual employment contract – or, in exceptional cases, from "company practice" if the employer has paid it unconditionally for at least three consecutive years.

Holiday pay is taxed as "other remuneration" (§ 39b para. 3 EStG) and calculated using the annual table with the difference method: the employer determines the income tax on the expected annual salary once without and once with the holiday pay – the difference is the tax on the special payment. Social security contributions also apply, just as with a Christmas bonus. The one-fifth rule (relevant e.g. for severance payments) does not apply here.

In the German public sector (TVöD), there has been no separate holiday pay since the 2005 collective agreement reform — it is part of the annual special payment (Christmas bonus) paid in November.

The amount depends heavily on industry and collective bargaining coverage. According to the WSI collective bargaining archive, collectively agreed holiday pay in the middle pay grade ranges between around €186 and €2,904. It is often also paid as a percentage of the monthly salary (typically 25–50%).

According to the WSI collective bargaining archive, around 44% of all employees in the private sector currently receive holiday pay – 73% with collective bargaining coverage, only 35% without a collective agreement. Company size also matters: in large companies with 500+ employees, the rate is 61%, in small companies with fewer than 100 employees only 37%.

Both are voluntary special payments governed by a collective agreement or contract and are taxed identically as "other remuneration". The difference lies in the timing of payment (holiday pay is usually paid before the main holiday season in summer, Christmas bonus in November) and often in the amount. In the public sector, both have been combined into a single annual special payment since 2005.

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