Last Update on state: 26.6.2026, reading time approx. 2 min 🇩🇪

BAG: Inflation bonus despite no pay

The Federal Labor Court ruled that employees on sick leave or parental leave are entitled to an inflation compensation bonus if they were employed during the reference month. The decision clarifies that the bonus is not tied to actual work performance but serves as financial relief for all employees.

Bonus paid even without salary

Employee receiving inflation bonus
Image: AI, Prompt: Thomas Meier-Bading

The Federal Labor Court (BAG) ruled on April 22, 2026 (Case No. 10 AZR 143/25) that employees are entitled to an inflation compensation bonus even if they received no salary in the reference month due to sick leave or parental leave. This means: If you were employed in the month the bonus was due, you get the full amount—regardless of whether you worked or not.

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Why the court decided this way

The key question was whether the bonus required actual work performance. The court found that the bonus’s sole purpose was to offset rising consumer prices, not to reward work. The wording „paid with the salary” only set the payment date, not a condition for eligibility. Other parts of the collective agreement showed that the parties knew how to exclude certain groups if they wanted to.

What happened in this case

A bus driver was on sick leave from April to July 2023. His employer paid him sick pay until early June, then statutory sick pay. The employer refused to pay the €250 inflation bonus for July, arguing the driver had no salary claim that month. The driver sued—and won. The BAG confirmed that the bonus was due simply because he was employed in July.

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