Christmas Bonus and 13th Salary in Europe: What to Know
A Christmas bonus or 13th salary isn’t a single European standard. In Spain and Italy it’s close to a legal right for most employees; in France, Germany and several other countries it depends entirely on the collective agreement or company policy, and plenty of employees get nothing extra at all in December.
This guide covers where an end-of-year bonus is guaranteed, where it isn’t, how it’s usually taxed, what happens if you were on sick leave or changed jobs during the year, and how to handle that extra money without it quietly disappearing into December spending.
Where it’s close to a legal right
Spain. Labour law guarantees an extra payment tied specifically to Christmas; a second one, often paid in summer, depends on the applicable collective agreement and isn’t automatic. Companies can spread both across the 12 monthly payslips instead of paying them as lump sums, but only if the collective agreement expressly allows it.
Italy. The tredicesima (13th month) is close to universal, established through national collective bargaining agreements (CCNL) covering the vast majority of employees, paid in December. Some sectors, notably tourism and retail, also have a quattordicesima (14th month), usually paid in June or July.
Other countries. Greece and Portugal have their own established extra-payment traditions tied to Christmas and other dates, with rules that vary by sector.
Where it depends entirely on the employer
France. There’s no general legal right to a 13th month or Christmas bonus; it exists where the applicable convention collective or a company-level agreement establishes a prime de fin d’année or treizième mois. Checking your own convention collective is the only reliable way to know whether it applies.
Germany and several other markets. A Weihnachtsgeld (Christmas bonus) is common but not universally mandated by law; it depends on the collective agreement (Tarifvertrag) or individual employment contract.
How it’s usually taxed
Where an extra payment exists, it’s normally added to annual taxable income and taxed accordingly, which is why the payslip in the month it’s paid often shows a noticeably higher withholding than usual: the employer recalculates the withholding rate based on total expected annual income once the extra payment is factored in. It isn’t a payroll error; it’s the standard mechanism to avoid a larger tax adjustment later.
What happens during sick leave or a job change
In most systems, an extra payment tied to a specific period doesn’t accrue during extended sick leave unless the applicable agreement improves on the general rule. If employment started or ended partway through the year, the usual approach is a proportional payment based on time actually worked, calculated according to the applicable agreement.
How to make the most of it
What to do with the extra payment depends on individual circumstances, and this isn’t personalised financial advice. That said, a few general points commonly found in financial literacy guidance: paying down high-interest debt (credit cards, short-term loans) usually generates more savings than any alternative use of the money. Building or topping up an emergency fund (commonly cited as 3 to 6 months of basic expenses) before discretionary spending reduces exposure to unexpected costs. The rest, holiday spending, some saving, some treats, is a personal call.
What helps regardless of the split is keeping that money separate from everyday spending, so it’s clear how much of the bonus remains versus how much is regular monthly spending, something that blurs easily in December between gifts, dinners and travel.
Managing the extra money without it disappearing in December
December is the month when it’s easiest to lose track of actual spending: online shopping, gifts, work dinners, travel. Loading the bonus, or the portion set aside for holiday spending, onto a Bitsa prepaid card kept separate from the main account makes it easy to see at a glance how much of the holiday budget remains, without mixing it with the rest of the month’s spending. The Free plan has no fee and no maintenance charge, so starting to use it adds no extra cost.
For online shopping during high-volume periods like this one, the guide on how to identify a reliable e-commerce site is worth checking too, since December is also the month with the highest volume of online fraud attempts.
Frequently asked questions about the Christmas bonus in Europe
Is a Christmas bonus a legal right everywhere in Europe?
No. It’s close to a legal right in Spain and Italy, but in France, Germany and several other countries it depends entirely on the applicable collective agreement or company policy.
Why is more tax withheld from my bonus payment?
Because the employer recalculates the withholding rate based on total expected annual income once the bonus is included. It’s the standard mechanism, not an error, and it helps avoid a larger tax adjustment later.
Can my employer spread the bonus across all 12 monthly payslips instead?
Only where the applicable collective agreement expressly allows it; an employer can’t decide to do this unilaterally without that basis.
Do I still get the bonus if I was on sick leave for part of the year?
Usually not for the period on leave, unless the applicable agreement improves on the general rule. For time actually worked, a proportional payment usually applies.
What’s the difference between a 13th and a 14th salary?
The 13th is the December end-of-year payment. A 14th, where it exists (common in Italian tourism and retail, for instance), is typically paid around June or July as a separate additional payment.