Tax-free premiums for night, Sunday and public holiday work
How much of the premium stays free of tax and contributions? The two limits differ, and that is exactly what most calculators overlook.
Your entries
The regular pay converted to an hour, in euros.
How many hours fall under the premium?
Result
A statutory entitlement to these premiums exists only for night work, and even there only in principle: section 6 (5) ArbZG requires an appropriate number of days off or an appropriate premium, unless a collective agreement provides otherwise. For Sunday and public holiday work there is no statutory entitlement to a premium; section 3b EStG only says how an agreed premium is taxed.
Calculation
- Rate under § 3b Abs. 1 Nr. 1 EStG: 25 %
- Premium = 20,00 € × 25 % × 8 h = 40,00 €
- Tax-free = min(20,00 €; 50,00 €) × 25 % × 8 h = 40,00 €
- Free of contributions = min(20,00 €; 25,00 €) × 25 % × 8 h = 40,00 €
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How it is calculated
The calculator covers the basic statutory rules. Collective agreements, works agreements and employment contracts may contain more favourable arrangements, and for a specific case it is better to ask someone with a licence to practise.
The rates from section 3b EStG
Premiums are tax-free up to these percentages of the base wage: 25 percent for night work between 20:00 and 06:00, 40 percent for the period from 00:00 to 04:00 if the work started before midnight, 50 percent for Sunday work, 125 percent for statutory public holidays and for 31 December from 14:00, and 150 percent for 24 December from 14:00, for 25 and 26 December and for 1 May.
Sunday and public holiday work covers the period from 00:00 to 24:00 of the day in question. Work from 00:00 to 04:00 of the following day still counts as Sunday or public holiday work if it began on the Sunday or the public holiday.
Two limits, not one
For the tax exemption, the base wage is capped at 50 euros per hour (section 3b(2) EStG). For the exemption from social security contributions, by contrast, the limit is 25 euros per hour (section 1(1) sentence 1 no. 1 SvEV).
Anyone with a base wage above 25 euros pays social security contributions on the part of the premium above it, even though it stays tax-free. Calculators that know only one limit produce too high a net amount here.
No entitlement arises from it
Section 3b EStG only says how a premium that is paid is taxed, not that it has to be paid. A statutory entitlement exists only for night work, and even there only in principle: section 6(5) ArbZG requires an appropriate number of paid days off or an appropriate premium, unless a collective agreement provides otherwise.
For Sunday and public holiday work there is no statutory entitlement to a premium. It arises, if at all, from a collective agreement, a works agreement, the employment contract or established company practice.
What can be combined
A night premium and a Sunday or public holiday premium may be granted tax-free alongside each other. A Sunday and a public holiday premium may not: if a public holiday falls on a Sunday, the higher public holiday rate applies.
That is why the calculator treats each case separately instead of forming a total that would be wrong in individual cases.
To read and take along
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- Calculating working time, day by day and for the week
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- Leave when the number of working days changes
Frequently asked questions
What we get asked about this most often.
Question not answered here? Every step is explained in the help centre.
Send us a messageHow high is the tax-free night premium?
25 percent of the base wage for work between 20:00 and 06:00. If the work starts before midnight, the rate for the period from 00:00 to 04:00 rises to 40 percent (section 3b(3) no. 1 EStG).
What is the base wage?
The ongoing pay due for regular working time, converted to one hour. One-off payments such as Christmas pay are not part of it. For the tax exemption it is capped at 50 euros per hour.
Why is my premium tax-free but not free of contributions?
Because social security draws a lower limit: 25 euros of base wage per hour instead of 50 euros. If your base wage is in between, the premium stays tax-free but is partly subject to contributions (section 1(1) sentence 1 no. 1 SvEV).
Am I entitled to a Sunday premium?
Not by law. An entitlement arises only from a collective agreement, a works agreement, the employment contract or established company practice. The law only governs the tax treatment when a premium is paid.
Does the tax exemption also apply to overtime premiums?
No. Section 3b EStG covers only premiums for Sunday, public holiday and night work. A premium for somebody working longer is fully subject to tax and contributions.
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