Generous perk on the horizon: Millions of workers to claim substantial extra holiday pay
In a significant development for public sector employees in Oregon and California, substantial back payments and additional vacation days are set to be distributed as part of recent labor agreements.
The updates, which span the plan years 2025 through 2027, bring about enhanced vacation accrual rates, additional personal leave hours, new paid holidays, and flexible cash-out opportunities.
Union proposals during 2025 bargaining maintain increases to vacation accrual rates per tier, allowing employees to accumulate more vacation time. Additionally, a modified vacation cash-out option permits employees with a balance of at least 200 hours to cash out 40 hours of vacation twice a year, once between January 1 and June 30, and once between July 1 and December 31.
Full-time employees working fully in-person are granted 8 additional hours of personal business leave, providing more flexibility beyond traditional vacation time. A newly proposed paid holiday for Indigenous People’s Day expands paid leave options.
Eligible state employees may cash out unused vacation or annual leave according to their Memorandum of Understanding (MOU), subject to funds availability and specific caps. The agreements also modify language on overtime and leave usage, ensuring employees cannot be required to work while on sick leave and maintaining current hardship leave donation rules.
However, the specific lump sum "back payment" amount has not been publicly detailed. Nevertheless, the substantive benefits appear embedded in negotiated terms improving leave accrual and usage.
Meanwhile, in Germany, public sector employees are also set to receive a substantial back payment due to bureaucratic hurdles delaying a previously agreed 3% pay increase. The TVöD collective agreement includes various occupational groups such as administrative staff, teachers, educators, police officers, firefighters, nursing staff, and many others.
Employees in the public sector in Germany are entitled to 20 legally prescribed vacation days for a five-day week and 24 for a six-day week, but most companies offer more. The transfer of vacation days to a subsequent year is legally excluded. Employees under TVöD can expect to receive the back payment with one of their next pay statements.
The full vacation entitlement only applies legally if the employee has successfully completed the probationary period. Employees in certain occupational groups will now receive a substantial back payment for unused vacation days. Until then, vacation must be claimed pro rata per calendar month.
From 2027, employees under TVöD can also look forward to an additional vacation day. Public holidays in Germany are available to employees for relaxation, but regional differences apply due to differences in religious traditions. Berlin and Hesse are the only federal states in Germany that do not recognize All Saints' Day or the Reformation Day, resulting in fewer public holidays.
In conclusion, millions of employees in the country will receive a substantial bonus payment, reflecting the substantial negotiated leave benefits over the 2025-2027 period in Oregon and California, while Germany's public sector employees are set to benefit from a back payment due to delayed wage increases.
- The union-negotiated terms in Oregon and California from 2025 through 2027 encompass a broader 'stipulation of more vacation accrual rates' and 'additional personal leave hours', extending beyond traditional vacation time.
- In Germany, a significant 'back payment' is anticipated for public sector employees, mainly due to a delayed 3% wage increase, similar to the substantial benefits gained in leave accrual and usage over the 2025-2027 period in Oregon and California.
