The return of the performance culture: Analysis of the design and impact of corporate remuneration systems in Germany

The findings are based on earnings survey data from 2022 to 2024 and on employee and employer survey data from 2025.

High relevance of special payments in compensation: In 2024, full-time employees in Germany earned an average of €5,942 in special payments (irregular, non-monthly payments such as holiday and Christmas bonuses, performance bonuses, or severance payments). This corresponds to 10.6% of the average annual gross salary excluding special payments, according to the Federal Statistical Office based on the earnings survey. In expert professions, full-time employees received the highest special payments, averaging €11,991 in 2024.

• High salary = high special payments: Industries with high earnings tend to also pay higher special bonuses. The financial and insurance services sector pays the highest average special payments. The lowest average special payments are found in agriculture and forestry, fisheries, and in public administration, defense, and social security.
• Wide variety of special payments, bonuses, and additional benefits in use: 
• 65% of companies in Germany offer occupational pension schemes, and 61% pay a Christmas bonus. Every second company provides performance- or success-based compensation. The figures are based on the IW-Personalpanel, a survey of HR managers, conducted in 2025.
• According to the 2025 employee survey, 60% of employees receive a Christmas bonus, and 45% receive holiday pay. In addition to financial bonuses, employees often receive material benefits. One in four receives a subsidy for public transport, a company car, or an e-bike from their employer. Nearly one in five has access to a company canteen, receives a meal subsidy, or benefits from health promotion services. 
• Performance- and success-based compensation is (again) gaining importance: More than one in four companies with performance- and success-based compensation are using it more intensively in 2025 compared to five years ago. This type of compensation is most commonly used to incentivize and reward performances and retain employees. Employees who receive performance- and success-based compensation are not only more satisfied with their pay but also more engaged in their daily work and less likely to want to change their jobs.
• Adjusting labor costs in times of crisis: More than half of companies use performance- and success-based compensation to link labor costs to the company’s economic development. One in four companies also plans to suspend upcoming wage increases or reclassifications in 2025 due to poor economic prospects. Employee who are afraid of losing their jobs would even forego an average of 22 percent of their salary to prevent a job loss.