Shift allowance

A shift allowance is an additional benefit paid by the employer on top of the basic salary, which is paid as a percentage. The amount of the shift allowance is usually determined by the employment contract, collective agreement or works agreement.

Legal claim

In general, there is no statutory entitlement to a shift allowance. According to the Federal Labor Court, there is only an entitlement to bonus payments for night work.

If this has not been agreed in the contract, the Working Hours Act stipulates that working hours completed during the night shall be granted an appropriate number of paid days off or an appropriate supplement.

This also means that there is no statutory entitlement to a shift allowance on Sundays and public holidays.

Shift allowance: Types

There are various types of allowances that the employer can pay, including

• hardship allowance
• Performance bonus
• Functional allowance
• Social allowance
• Alternating shift allowance

Difference to the surcharge

Bonuses should not be confused with shift premiums. Although both terms sound quite similar, they are actually quite different.

A shift supplement is a supplement paid by the employer for work on Sundays, public holidays or at night.

This entitlement arises from the Working Hours Act.

No tax and contribution exemption for shift allowance

Allowances are generally subject to tax and contributions in full. There are no special regulations or exceptions. This is also essentially different from the supplements.

The tax exemption of bonuses, on the other hand, depends on the amount.