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How are annual leaves regulated in Germany?

Modified on: Tue, 4 Nov, 2025 at 6:56 PM

TABLE OF CONTENTS

Entitlement
Accrual and Payment
- Accrual Rules
- Pro-Rating for Fixed-Term Contracts
Payment During Leave
Scheduling and Notice
Public Holidays
Carryover Rules

In Germany, annual leave (referred to as "holiday" or "vacation," 'Urlaub') is governed by the Federal Holiday Act (Bundesurlaubsgesetz, or BUrlG). Here is a concise overview of the key rules and entitlements regarding employee holidays.

Entitlement

Employees working full-time are entitled to a minimum of 24 working days of paid annual leave per year, based on a six-day workweek. If an employee works a five-day workweek (e.g., Monday to Friday), the minimum entitlement is 20 days per year. Many employers offer more generous leave through collective agreements or individual contracts.

Accrual and Payment

Annual leave accrues on a pro-rata basis, meaning employees may not have their full entitlement in the first year of employment. While on vacation, employees receive their regular salary, ensuring their income is unaffected.

Accrual Rules

Employees do not receive their full annual leave entitlement immediately upon starting a job.
Leave accrues monthly, and employees earn 1/12 of their annual entitlement per month worked.
After completing 6 months of continuous employment, employees become entitled to their full annual leave, regardless of whether they are on a permanent or fixed-term contract.

Pro-Rating for Fixed-Term Contracts

Even if an employee is on a fixed-term contract, they may still be entitled to the full annual leave if the contract extends beyond June 30 of the calendar year.

Example:

An employee has a contract from January 1 to July 8.
Their annual leave entitlement is 30 days.
Because the contract ends after June 30, the employee is entitled to the full 30 days of leave.
Any unused leave must be calculated based on the full-year entitlement, not just the months worked.

Payment During Leave

While on approved vacation, employees receive their regular salary, ensuring their income remains unaffected during time off.

Summary on accrual rules:
Leave accrues monthly during the first 6 months.
After 6 months, employees are entitled to the full annual leave.
Fixed-term employees whose contracts extend past June 30 are treated as having full-year entitlement.
Unused leave must be calculated based on the full entitlement if the 6-month threshold is met.
Vacation days are paid at the employee’s regular salary rate.

Scheduling and Notice

The timing of annual leave is typically negotiated between the employee and the employer, who should consider the employee's need for rest but has the final say. Employees are required to provide notice as outlined in their employment contract, and employers may deny requests if it disrupts business operations.

Public Holidays

Public holidays that occur during annual leave are not counted as vacation days, allowing employees to take those days off separately.

Carryover Rules

General Rule: Employees must use their full leave within the calendar year (by December 31st). Employers are required to remind employees to take their leave in time.
Carryover: In cases where employees cannot take their leave due to operational needs or personal reasons like illness, unused leave can be carried over to March 31st of the following year. Any unused leave beyond this date is forfeited unless otherwise agreed in the employment contract.
Long-Term Illness Exception: For employees on long-term sick leave, the carryover period may extend up to 15 months, allowing leave to be used by March 31st of the second year following the leave year.

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