Employee Bonuses: Millions Set to Receive Excess Vacation Time Benefits
In the coming years, employees in the public sector can look forward to a series of changes, including wage increases, additional vacation days, and improvements in leave and benefits.
The wage increase for employees in the public sector was originally scheduled for April 2025. This increase, a result of successful collective bargaining negotiations, is expected to outpace inflation, providing a much-needed boost amid economic uncertainty. However, due to bureaucratic obstacles, millions of employees may receive a substantial back payment. The specific details of these back payments vary by group, but they are set to provide a significant financial relief.
Regarding holidays, the federal state with the most public holidays in 2025 is the Free State of Bavaria, with 13 non-working days. Regional differences exist due to religious traditions, and some regions, such as Berlin and Hesse, do not recognize All Saints' Day or the Reformation Day.
In terms of vacation days, employees currently enjoy an average of 31.0 days off per year. From 2027, employees under TVöD can expect an additional vacation day. It is important to note that the transfer of vacation days to a subsequent year is legally excluded. Until then, vacation must be claimed pro rata per calendar month. The legally prescribed vacation days in a five-day week are 20 working days, and 24 working days for a six-day week.
Collective agreements for various occupational groups in the public sector (TVöD) cover administrative staff, teachers, educators, police officers, firefighters, nursing staff, and many others. The full vacation entitlement legally applies only if the employee has successfully completed the probationary period.
While the details about back payments or additional vacation days were not explicitly mentioned in the available summaries for some agreements, improvements in leave entitlements and flexible benefits are confirmed. For instance, the Ontario Public Service (OPS) 2025–2028 collective agreement includes mental health improvements, a nearly 40% increase in flexible Health Care Spending Accounts, and protections for flexible work arrangements.
Interested employees are encouraged to consult the full collective agreement documents or union-specific fact sheets as they are released to receive detailed implementation information. The specific figures or descriptions of substantial back payments and exact additional vacation days may be found in these documents.
The specific figures or descriptions of the substantial back payments may be found in the obtained collective agreement documents. The improvements in leave and flexible benefits, such as the Ontario Public Service's additional Health Care Spending Accounts and protections for flexible work arrangements, are confirmed in the respective agreements.
