Paid vacation and you still get paid? Germany’s welfare benefits are really enviable!

Release Time:2025/8/21

German companies generally prioritize efficiency over blind pursuit of speed. They believe that only by resting well can one work well, and taking vacations can actually improve work efficiency.
Under Germany’s Federal Leave Act (Bundesurlaubsgesetz), employees on a 6-day workweek are entitled to at least 24 days of paid annual leave; those on a 5-day workweek get a minimum of 20 days; and 4-day workweek employees receive 16 days. However, this is only the statutory minimum standard—many industries commonly offer 30 or even 40 days of paid leave annually.
What is even more enviable is that many regions also provide a "vacation allowance" (Urlaubsgeld). Among Germany’s 16 federal states, 9 offer this allowance, while the remaining states have established specific eligibility criteria for related subsidies. The amount of the allowance varies by region and industry. For example:

The average allowance in the mechanical engineering and automotive industries reaches €2,358 and €2,113 respectively;
The publishing industry offers an even higher average of €2,613, with 90% of employees eligible;
Industries such as energy, insurance, and finance also often provide allowances exceeding €2,000.
The vacation allowance is typically distributed through five methods:
Stipulated in individual labor contracts;
Specified in collective labor agreements (Tarifverträge);
Set out in company-level agreements;
Voluntarily provided by the company;
Or established as a "company practice" (e.g., the same amount for three consecutive years).
In addition to these generous leave benefits, Germany also provides comprehensive social security including free university education and childcare subsidies, truly achieving broad welfare coverage from "birth to old age".

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