In Germany, the Christmas bonus is treated under tax law as a "other payout" (one-off payment) rather than regular wages. This has noticeable effects on taxation:

• The Annual Table: Tax on special payments is determined by comparing the estimated annual salary without the bonus against the annual salary with the bonus.
• Higher Marginal Tax Rate: Because the Christmas bonus is added to your yearly gross salary, the tax progression applies, leading to a higher tax rate.