Following discussions with the Works Council, Volkswagen AG has decided to again pay the employees at its German locations a voluntary coronavirus premium as a mark of appreciation for their great dedication.
Chief Human Resources Officer Gunnar Kilian emphasized: “In recent months, the pandemic greatly tested our employees – whether they were working at our locations or remotely. The flexibility and tireless dedication they have shown is a remarkable performance that we would like to recognize. That is the reason for the new coronavirus premium.”
General Works Council Chairwoman Daniela Cavallo said: “The coronavirus premium represents an important sign of appreciation in difficult times. In the discussions about the premium, the Chairs of the Works Councils at the different locations made it clear that our workforce could always be relied on. At the same time, the strain was immense: industrial production under difficult pandemic conditions, repeated short-time working, loss of shift allowances, the balancing act between working from home while schooling and caring for children – these are just a few examples. The €500 will be paid gross for net, which means that employees will receive the full amount. Independent of the coronavirus premium, we are continuing our discussions on the performance-related bonus envisaged by the collective bargaining agreement. It will be difficult to achieve more than the November advance payment but we will of course continue to fight on this important issue.”
The coronavirus premium is a one-off payment of €500 for the period from July 2021 to February 2022. Apprentices, dual students and doctoral students will receive up to €300 in recognition of the additional strain caused by the pandemic. The special premium will be paid out with employees’ February salary and is exempt from tax and social security contributions.
In June 2021, Volkswagen had already paid a coronavirus premium of up to €1,000 for the period from March 2020 to June 2021. This new premium of €500 is being paid retrospectively for the period from July 2021 to February 2022. It has been made possible thanks to the German government’s coronavirus economic aid package, which enables employers to pay their employees up to a total of €1,500 free from tax and social security contributions. Volkswagen is thus utilizing the maximum amount that is available as financial relief for the impact of the pandemic.
Coronavirus premium for Volkswagen AG employees
Volkswagen AG is again paying the employees at its German locations a coronavirus premium in recognition of their great dedication in recent months working under difficult conditions. The regular coronavirus premium of €500 will be paid out at the end of February 2022 with employees’ monthly salary. This was announced today (Tuesday) by the Executive Board and the Works Council.