What’s the Future of Christmas Bonuses at Mercedes-Benz?
Despite significant challenges in the German automotive industry, Mercedes-Benz employees will not have to forego their Christmas bonuses in 2024. Even though the company has revised its profit forecast downwards and is facing imminent cost-saving measures, the employees are expected to benefit from this annual year-end bonus.
Are Companies Able to Afford Christmas Bonuses?
Given the current difficulties in the German auto industry, one might wonder if companies can afford to give out bonuses to thousands of employees. However, Christmas bonuses are enshrined in the collective bargaining agreements of the metal and electrical industry, which also provide a general framework for the amount. While ZF Friedrichshafen adheres to the collective agreements, Porsche is set to increase its Christmas bonus significantly in 2024. But what about Mercedes-Benz? Let’s find out.
How Much Christmas Bonus Will Mercedes-Benz Pay in November 2024?
Last year, Mercedes-Benz adhered to the collective agreements, paying employees a Christmas bonus of 25 to 55 percent of one month’s salary. This approach will continue in the challenging year of 2024. “The amount of the Christmas bonus is specified in the collective agreement of the metal and electrical industry and ranges from 25 to 55 percent of a monthly salary, depending on the length of service,” said a company spokesperson. The Christmas bonus will be paid with the November salary.
How Does the Duration of Employment Affect the Christmas Bonus at Mercedes-Benz?
The amount of the Christmas bonus at Mercedes-Benz also depends on the length of employment. According to collective bargaining rules, employees are entitled to 25 percent of their monthly salary as a Christmas bonus after six months, increasing to 35 percent after 12 months, 45 percent after 24 months, and 55 percent after 36 months. This means that the actual amount of the bonus depends on the monthly salary. Here are some example calculations:
| Job Title | Monthly Salary (Gross) | Christmas Bonus at 25% | Christmas Bonus at 55% |
|---|---|---|---|
| Engineer | €7,033 | €1,758.25 | €3,868.18 |
| Controller | €6,158 | €1,539.50 | €3,386.90 |
| Clerk | €4,550 | €1,137.50 | €2,502.50 |
| Accountant | €3,733 | €933.25 | €2,053.15 |
| Production Manager | €3,833 | €958.25 | €2,108.15 |
| Auto Mechanic | €3,450 | €862.50 | €1,897.50 |
How Do Mercedes-Benz Employees Benefit from IG Metall Negotiations?
The hierarchy at the world’s oldest car manufacturer is divided into various pay groups. Directly beneath the board of directors, led by CEO Ola Källenius, is the management level. The executives make up level 1 at Mercedes-Benz, followed by department heads (E2), section heads (E3), and team leaders (E4). Below these levels, the IG Metall collective wage applies. The recent negotiations led to a wage increase for the metal and electrical industry. These collective agreements also include the Christmas bonus.
Summarizing
Despite the economic challenges facing the German auto industry, Mercedes-Benz continues to honor the collective bargaining agreements, ensuring its employees receive their Christmas bonuses. This commitment is a testament to the company’s dedication to its workforce, providing financial relief during the holiday season and demonstrating a steadfast commitment to its employees’ well-being.
