Jubiläumszahlungen

Jubiläumszahlungen are discretionary one-time monetary awards granted by an employer to an employee on milestones of length of service or corporate anniversaries. They are intended to recognize loyalty, reward long service, and support employee retention. The payments are typically linked to work anniversaries such as ten, twenty, or thirty years, but exact milestones vary by employer and country.

The term and practice vary across German-speaking regions. In Germany the concepts are often referred to as Jubiläumszahlung, Jubiläumszuwendung or similar terms and are usually not statutory unless provided by contract, a collective agreement, or company policy. In Austria the term Jubiläumszahlung or Jubiläumsgratifikation is more common and may be explicitly regulated by collective agreements or works agreements; amounts and eligibility can differ between industries and firms. In Switzerland, practice likewise depends on the employment contract and any applicable collective agreements or company policies.

Eligibility and calculation are determined by the employer. Schemes may apply to all employees after a specified tenure or be limited to certain groups; some require continuous service, meeting performance criteria, or reaching a particular milestone. Amounts can be fixed sums, a percentage of annual salary, or tiered according to the length of service.

Taxation and accounting follow local rules. Jubiläumszahlungen are generally treated as employee compensation and may be subject to income tax and social charges according to national regulations. They are funded from the employer’s payroll and are not guaranteed by law in most contexts, instead representing a policy choice or contractual commitment.

See also: Christmas bonus, vacation pay, long service award.