If you employ people in Germany — or are planning to — annual leave is one of the first compliance topics that will land on your desk. Germany’s Federal Leave Act (Bundesurlaubsgesetz, or BUrlG) sets a clear statutory floor, but the way it is calculated, carried over, and forfeited has shifted significantly over the past few years thanks to a string of European Court of Justice rulings.

This guide explains what the BUrlG actually requires in 2026: the 24 working day minimum, how it converts to a five-day week, the six-month qualifying period, employer notification duties, holiday pay calculation, and the pitfalls that catch international employers most often. Every fact below comes from the Bundesurlaubsgesetz itself or directly applicable case law.

Key Takeaways

The statutory minimum is 24 working days of paid annual leave per calendar year on a six-day week, equivalent to 20 working days on a five-day week.
Full entitlement applies after a six-month qualifying period (Wartezeit); pro-rated entitlement applies before that and on termination.
Severely disabled employees receive an additional five working days under SGB IX.
Statutory leave only expires on 31 December if the employer has actively informed the employee of the remaining balance and the risk of forfeiture (post-2018 ECJ case law).
Untaken leave on termination must be paid out as Urlaubsabgeltung.

The Statutory Entitlement Under the Bundesurlaubsgesetz

Section 3 of the Bundesurlaubsgesetz sets the floor: every employee is entitled to at least 24 working days of paid annual leave per calendar year. The Act defines a “working day” (Werktag) as Monday to Saturday — so 24 working days equals exactly four full weeks of leave.

This six-day-week calculation is the source of most confusion for international employers. Almost no German employer operates a six-day week in practice. The 24-day figure must therefore be converted to match each employee’s actual schedule.

How the 24 Days Convert to a Five-Day Week

For a five-day-week employee, the statutory minimum is 20 working days (24 ÷ 6 × 5). The four-week principle is preserved — what changes is the count of “working days” within those four weeks.

Most German employers go beyond the minimum. 25 to 30 days on a five-day week is the market norm, set either by individual contract or by a collective bargaining agreement (Tarifvertrag). Anything offered above the statutory 20 days is contractual leave, and the employer has more flexibility over how it is treated for carry-over and forfeiture.

Severe Disability: An Extra Five Days

Employees who are formally recognised as severely disabled (schwerbehindert) under Social Code Book IX (SGB IX) receive an additional five working days of paid leave per year on a six-day week (four days on a five-day week). This is a statutory entitlement, not a discretionary benefit, and it sits on top of any contractual leave the employer offers.

Eligibility: The Six-Month Qualifying Period (Wartezeit)

Section 4 of the BUrlG introduces a qualifying period: an employee acquires full annual leave entitlement after six months of continuous employment. This is known as the Wartezeit.

Before the six-month mark, the employee has pro-rated entitlement — one twelfth of the annual entitlement for each completed month of service. The same pro-rata rule applies on termination if the employee leaves part-way through the year.

Worked Example: Mid-Year Joiner

Anna joins a Berlin office on 1 March 2026 with a contractual entitlement of 28 days. Her leave year follows the calendar year.

March to August (six months): Anna accrues at one twelfth per completed month — 28 ÷ 12 × 6 = 14 days by the end of August.
From 1 September: Anna has completed her Wartezeit and is entitled to her full 28 days for 2026, even though she has only worked nine months of the year. This is the legal effect of completing the qualifying period within the calendar year.

Worked Example: Mid-Year Leaver

If Anna had instead joined on 1 March and left on 31 July (before completing six months), she would receive five twelfths of 28 days — 11.67 days, typically rounded to 12.

Employer Obligations Under the BUrlG

German leave law places several non-negotiable duties on the employer. Treat these as a checklist.

1. Grant the Statutory Minimum

You must grant at least 24 working days (six-day basis) — or its equivalent on the employee’s actual schedule — every calendar year. Contracts that purport to offer less are void to the extent of the shortfall.

2. Pay Holiday at Average Earnings

Holiday pay (Urlaubsentgelt) is calculated under §11 BUrlG on the average earnings of the 13 weeks immediately before the leave period begins. The reference average must include:

Regular shift, on-call, and night premia
Regular bonuses and commission
Allowances tied to ordinary performance of the role

Overtime that is not part of regular working hours is excluded. The principle is that the employee should not be financially worse off for taking their leave.

3. Actively Inform Employees Before Forfeiture

This is the obligation that has changed most in the last decade. Following the European Court of Justice rulings in Max-Planck-Gesellschaft v Shimizu (C-684/16) and Kreuziger (C-619/16) — both decided in November 2018 — German employers must actively inform employees in writing about:

Their remaining leave balance for the year
The deadline by which it must be taken
The risk that untaken leave will be forfeited if not used in time

Without that notification, statutory leave does not expire. This represents a major shift from the pre-2018 default position, where unused leave generally lapsed on 31 December automatically. The BAG (Federal Labour Court) has consistently followed the ECJ’s approach in subsequent rulings.

4. Pay Out Untaken Leave on Termination

When employment ends, any accrued but untaken leave must be paid out as Urlaubsabgeltung (compensation in lieu). This is a statutory right that cannot be contracted away.

5. Grant the Five Extra Days for Severe Disability

Where SGB IX applies, the additional five days must be granted. Failure to do so is a clear breach.

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Carry-Over and Expiry: What 31 December Actually Means

Section 7(3) of the BUrlG sets the default rule: statutory annual leave must be taken within the calendar year. Carry-over into the first three months of the following year (until 31 March) is permitted only where personal or operational reasons prevented the employee from taking it.

Two important practical points layer onto that default:

Leave does not expire automatically. As above, statutory leave only forfeits on 31 December (or 31 March in carry-over cases) if the employer has actively informed the employee of the remaining balance and the consequences of inaction.
Sickness extends the carry-over window. Under the BAG’s case law applying ECJ rulings, employees who could not take leave because of long-term illness can carry it over for up to 15 months from the end of the leave year in which it accrued. This protects the underlying purpose of paid annual leave as a recovery period.

For employers, the practical answer is straightforward: send written reminders early in Q4, document them, and your statutory carry-over and forfeiture rules will hold up.

Holiday Pay Calculation in Detail

Urlaubsentgelt under §11 BUrlG works on a 13-week reference period. The mechanics are:

Identify the 13 weeks ending immediately before the first day of the leave period.
Calculate total earnings in that window, including regular premia, bonuses, and commission, but excluding overtime outside contractual working hours.
Divide by the number of working days in the reference period to get a daily rate.
Multiply by the number of leave working days being taken.

For salaried employees on a stable wage with no variable components, this typically just means continuing to pay normal salary during the leave period. The complexity arises when employees earn meaningful variable pay — sales commissions, on-call premia, or shift differentials — that must be averaged into the holiday rate.

Common Pitfalls for International Employers

If your team has only worked in the UK, US, or Australia before, the German framework will catch you off guard in predictable ways. Watch for these.

Pitfall 1: Assuming Leave Lapses on 31 December Automatically

This was true before 2018. It is no longer true. Without active written notification of the remaining balance and the risk of forfeiture, statutory leave carries forward indefinitely until you discharge the duty. Some employers have discovered five-figure leave liabilities on the books because they never sent the notifications.

Pitfall 2: Calculating the Minimum on a Five-Day Basis Without Converting

A common error is to read “24 working days” and apply it as 24 days on a five-day week. The BUrlG’s working-day definition is Monday to Saturday. The five-day-week conversion is 20 days, not 24. This usually does not matter in practice because most contracts offer 25–30 days, but it does matter when calculating pro-rata entitlements, sickness top-ups, and termination payouts.

Pitfall 3: Forgetting the Severe Disability Top-Up

Five additional working days are owed to recognised severely disabled employees. This is not a Tarifvertrag perk — it is a statutory right under SGB IX that applies regardless of what the contract says.

Pitfall 4: Excluding Variable Pay from Holiday Pay

If you only pay base salary during leave for an employee who normally earns substantial commission or shift premia, you are underpaying. The 13-week average must include regular variable components.

Pitfall 5: Treating Works Council Co-Determination as Optional

Leave scheduling is a co-determination matter under §87(1) No. 5 of the Works Constitution Act. If you have a Works Council (Betriebsrat), you cannot unilaterally set leave-scheduling principles, blackout periods, or approval workflows. We cover this in detail in Works Councils and Leave in Germany — read it before you draft a German leave policy.

Frequently Asked Questions

How many days of annual leave am I entitled to in Germany?

The statutory minimum is 24 working days on a six-day week, which is equivalent to 20 working days on a five-day week. Most German employers offer 25 to 30 days through individual contracts or collective bargaining agreements.

Does annual leave expire at the end of the year in Germany?

Statutory leave nominally expires on 31 December, with a possible carry-over until 31 March. Since the 2018 ECJ rulings in Max-Planck-Gesellschaft v Shimizu and Kreuziger, leave only expires if the employer has actively informed the employee in writing of the remaining balance and the risk of forfeiture.

When am I entitled to my full annual leave in Germany?

Full annual leave entitlement is acquired after six months of continuous service (the Wartezeit). During the first six months, leave accrues pro-rata at one twelfth of the annual entitlement per completed month. Once the qualifying period is met within a calendar year, the full entitlement for that year applies.

What happens to unused leave when I leave my job?

Untaken accrued leave must be paid out in cash as Urlaubsabgeltung. This is mandatory under the BUrlG and cannot be waived in the employment contract.

Do severely disabled employees get extra leave?

Yes. Employees recognised as severely disabled (schwerbehindert) under SGB IX receive five additional working days per year on a six-day-week basis (four days on a five-day week), on top of their normal statutory or contractual entitlement.

How is holiday pay calculated in Germany?

Holiday pay (Urlaubsentgelt) is the average daily earnings of the 13 weeks before the leave begins, including regular shift premia, on-call payments, bonuses, and commission. Overtime that is not part of regular working hours is excluded.

Practical Compliance Checklist

If you operate in Germany, your leave management system needs to handle the following at minimum:

Calculate statutory entitlement on a six-day basis and convert it correctly to each employee’s actual schedule.
Track the six-month Wartezeit per employee and switch from pro-rata to full entitlement at the right point.
Apply the severe-disability top-up where SGB IX status is recorded.
Send written carry-over and forfeiture notifications at a minimum once before the end of each leave year.
Calculate holiday pay using the 13-week reference average, including variable pay.
Pay out untaken leave automatically on termination.
Respect Works Council co-determination on the framework that governs all of the above.

How Leave Balance Helps German Employers Stay Compliant

Managing the BUrlG correctly across a German workforce — alongside UK, AU, or US teams — is the kind of compliance work that breaks generic spreadsheets. Leave Balance is built to handle it.

Country-specific entitlement rules for Germany, including six-day-to-five-day conversion and the SGB IX top-up
Wartezeit tracking that automatically switches from pro-rata to full entitlement at the six-month mark
Carry-over reminders and audit trail so you can prove you discharged the post-2018 notification duty
Holiday pay calculations that incorporate the 13-week reference average where you record variable pay
Multi-country support with separate policies per entity, all on a single dashboard

For more on the German operating model, also see our guides to Works Councils and Leave in Germany and the broader employer’s guide to annual leave entitlements in the UK for a side-by-side picture of the two regimes.

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