Contents
Basis and amount
There is no statutory entitlement. Shift allowances are set out in collective agreements, works agreements or employment contracts, often as a fixed monthly amount or as a percentage of the base wage.
Scales by burden are usual: rotating shifts including nights higher than two-shift operations without nights. Many collective agreements add an allowance for permanent night work.
A difference for tax
The tax exemption under section 3b EStG applies only to premiums paid for work actually performed at certain times: night, Sunday, public holiday. A flat shift allowance does not meet that, because it is paid irrespective of the specific hour.
It is therefore fully subject to tax and contributions. Anyone wanting to combine the two has to state the night portion separately and settle it per hour.
Example: a combination in three-shift operations
- Collectively agreed shift allowance: 120 euros a month, fully subject to tax and contributions.
- Night premium: 25 percent per hour actually worked at night.
- At 40 night hours and a base wage of 22 euros: 220 euros of night premium, free of tax and contributions.
- Both are stated separately, otherwise the tax exemption is lost.
Common mistake
The shift allowance and the night premium get combined into one line. The whole amount is then taxable, because the part favoured under section 3b EStG can no longer be identified.
This is not legal advice; for a specific case at your workplace you are better off asking someone qualified to give it.
Published by: AMNAU GmbH
Editorial responsibility: Ugur Aydogan, Product development.
Last reviewed: 2 September 2026