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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure DE-2020-49/1583 Updated – measures in Germany

Corona bonus at Daimler Germany

Conora-Prämie bei Daimler in Deutschland

Country Germany , applies nationwide
Time period Temporary, 01 December 2020 – 31 December 2020
Context COVID-19
Type Company practices
Category Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
Author Birgit Kraemer (Hans Boeckler Foundation) and Eurofound
Measure added 09 December 2020 (updated 21 January 2022)

Background information

Automobile company Daimler has compensated employees for the additional strains created by measures implemented to slow down infections with COVID-19 in Germany. Daimler's HR management recognised that wearing face masks at work as well as working from home for longer periods of time constitute physical and mental hard ship for employees. The company works council confirmed that employees had to work under more difficult conditions in 2020 compared to the years before. Daimler management therefore decided to compensate employees with a bonus payment to be paid at the end of the year.

Content of measure

Daimler employees benefit from a one-time bonus payment (Corona-Prämie) to be paid at the end of the year. The bonus recognises employees' efforts and their difficult working conditions in 2020, and aims to cushion financial and personal hard ship suffered during the corona pandemic. The bonus amounts to €1000, with no variation according to salary levels. The total number of workers receiving the bonus exceeds 160,000 employees. Only standard employees are covered by the measure. The bonus will be paid together with the salary for the month of December and is not subject to tax deductions or social insurance deductions.

Updates

The following updates to this measure have been made after it came into effect.

15 December 2021

Daimler management and the work council have agreed on a profit sharing premium for 2021 covering all employees working under the collective agreement. The premium is announced to be paid with the February 2022 salary. It can be up to €6,000 per employee. Up to 125,000 employees can profit from the measure.

31 December 2020

This temporary measure expired on 31 December 2020.

Use of measure

This is a measure with direct effect at individual level. As a collective, Daimler employees are facing restructuring measures because of a decrease in demand. Company plans for cost reduction and restructuring are not affected by the bonus payment.

Contents

  • Bonuses

Target groups

Workers Businesses Citizens
Employees in standard employment
Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
Employer

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Company level

Involvement

  1. This is a management-led initiative at individual company level.
  2. Social partners outside the company were not involved.
  3. The employer bears the cost of measures.

Views and reactions

No data.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      C - Manufacturing C29 Manufacture of motor vehicles, trailers and semi-trailers

This case is not occupation-specific.

Sources

Citation

Eurofound (2020), Corona bonus at Daimler Germany, measure DE-2020-49/1583 (measures in Germany), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DE-2020-49_1583.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.