A holiday bonus in Europe is an extra payment that employees receive in addition to their regular salary. It is usually paid:
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Before summer holidays
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Before Christmas
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At the end of the year
In many European countries, this bonus is either legally required or strongly established by collective agreements.
It is sometimes called:
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13th month salary
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Vacation bonus
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Christmas bonus
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Annual bonus
The rules depend on the country and employment contract.
Why Do Employers Pay a Holiday Bonus?
Holiday bonuses are designed to:
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Help employees cover vacation expenses
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Support Christmas or end-of-year costs
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Reward long-term service
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Improve employee satisfaction
In some countries, it is a legal worker right. In others, it depends on company policy.
Types of Holiday Bonuses in Europe
1. 13th Month Salary
This is a full extra monthly salary paid once a year.
It is common in:
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Germany
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Austria
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Italy
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Spain
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Portugal
In some countries, employees even receive a 14th salary (summer + Christmas).
2. Vacation Bonus (Holiday Allowance)
In countries like:
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Netherlands
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Belgium
Employees receive a percentage of their annual salary (often around 8%) as a holiday allowance before summer.
3. Christmas Bonus
In countries such as:
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France
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Poland
Some employers provide a year-end bonus. It may be mandatory in some sectors but not all.
Is Holiday Bonus Mandatory in Europe?
It depends on:
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National labour law
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Collective bargaining agreements
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Your employment contract
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Company policy
For example:
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In Austria, 13th and 14th salaries are common and often regulated.
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In Germany, it depends on industry agreements.
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In the Netherlands, holiday allowance is legally required.
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In France, it is usually sector-based, not universal.
There is no single EU-wide rule. Each country decides separately.
Who Is Eligible for a Holiday Bonus?
You may qualify if you:
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Have a valid employment contract
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Completed a minimum service period
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Work full-time or part-time (pro-rated in many cases)
Temporary workers may receive partial bonuses depending on their contract length.
How Is Holiday Bonus Calculated?
Common methods:
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One full extra monthly salary
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A percentage of annual salary (e.g., 8%)
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Fixed amount based on collective agreement
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Pro-rata calculation based on months worked
Example:
If you worked 6 months, you may receive 50% of the bonus.
Is Holiday Bonus Taxable?
Yes.
In most European countries:
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Holiday bonuses are subject to income tax
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Social security contributions may apply
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Some countries apply reduced tax rates for 13th salary
Always check local tax rules.
What If Employer Does Not Pay Holiday Bonus?
You should:
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Check your employment contract
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Review collective labour agreement
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Ask HR for clarification
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Contact labour authorities if legally required but unpaid
If it is contractual or legally mandated, non-payment may violate labour law.
Important Advice for Foreign Workers
If you are working in Europe:
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Ask about 13th salary before signing contract
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Check if holiday allowance is included in monthly pay
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Confirm whether bonus is guaranteed or performance-based
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Keep written proof
Many foreign workers are not aware they are entitled to this benefit.
Frequently Asked Questions
Is holiday bonus the same across Europe?
No. Rules differ by country and sector.
Is holiday bonus part of basic salary?
Usually no. It is an additional payment.
Do part-time workers get holiday bonus?
Yes, usually pro-rated.
Can employer cancel holiday bonus?
If it is legally required or contractually guaranteed, they cannot cancel it without reason.
Final Summary
A holiday bonus in Europe is an extra salary payment given before summer or Christmas.
In some countries, it is mandatory.
In others, it depends on contract or collective agreements.
Always check:
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Your employment contract
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National labour laws
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Sector agreements
Understanding your holiday bonus rights helps you plan your income better while working in Europe.