Update from March 4, 2026: It remains unclear whether Volkswagen employees will receive a special bonus this year. Instead of deciding on a bonus, the VW board commissioned an external legal report, according to media reports. According to the report, no special payment may be set before an upcoming works council election. And exactly such an election is planned for next week at VW.
According to information from Spiegel, works council leader Daniela Cavallo described the procedure as a “delaying tactic”. She doesn’t understand why the proximity to the works council election is suddenly a problem. After all, in the past works council elections, the amount of the bonus for employees was set a few days before the election.
Update from February 11, 2026: On Tuesday evening, the employee representatives called for the workforce to participate in the form of a compensation payment in May, as the employees had previously foregone parts of their usual bonus in favor of the economic situation. They want to be involved in the billion-dollar cash flow, as works council boss Daniela Cavallo announced yesterday. “If everyone has now performed so well in terms of cost discipline that the net cash flow is correct, a recognition bonus is only fair,” says an internal letter that is available to the Handelsblatt.
Article from February 10, 2026: While Volkswagen employees are waiving the usual May bonus in this difficult phase in order to help the company, the board of directors appears to be exempt from this regulation. Three weeks ago, VW CFO Arno Antlitz had forecast a cash value of zero euros, which indicated the company’s tense financial situation.
However, the group has now corrected its assessment and announced in a mandatory announcement that a net cash flow of around 6 billion euros was achieved. This unexpectedly positive development means that the Volkswagen Board of Management has reached the maximum bonus level. This applies from a cash flow of 5.6 billion euros. As a result, all board members can now look forward to an additional bonus payment of up to 1.73 million euros.
As Bild previously reported, according to internal sources, Antlitz generated the billions through a package of measures. The measures included deferring development spending to 2026, reducing inventories (such as steel and chips) and releasing provisions.
Volkswagen suspends May bonus for employees
While the board of directors can look forward to a hefty bonus, the workforce will receive noticeably reduced bonus payments for 2026 and 2027. As Handelsblatt already reported, the so-called May bonus will be suspended in these two years. This was agreed as part of a collective bargaining compromise shortly before Christmas 2024. Instead of the usual variable part of the bonus, which is paid out in May, employees in these two years only have the fixed advance payment of around 1,900 euros, which is transferred in November. The flexible remainder of the bonus, which traditionally follows in May, will therefore be canceled for two years.
This decision is seen as part of a long-term plan to gradually increase the bonus back to previous levels from 2028 after a two-year break. By 2031, the bonus should rise completely back to the previous level.
Works council head Daniela Cavallo commented on the situation at the beginning of 2025 with the words: “It was foreseeable that the collective bargaining bonus would currently be very solid. The company would therefore have liked to take the red pencil now. We were able to avert that.” This makes it clear that despite the company’s tense financial situation, an agreement was reached that will at least partially benefit the employees in 2025.
Unexpected cash flow: Why is the employee bonus not a priority?
The fact that the workforce is giving up their variable part of the May bonus to show their love for the company, but will probably not participate in the unexpected cash flow, may seem unfair to some. “Certainly cutting employee bonuses on the one hand and setting high bonuses for board members seem contradictory at first glance. However, there is generally no legal connection between these benefits,” explains Christoph Seidler, partner and specialist in labor law at Osborne Clarke. Board members have individual contracts and the entitlements defined therein. “If the specified economic indicators are achieved, the board member is entitled to the corresponding variable remuneration. The company cannot simply reduce it.”
In the case of the VW workforce bonus, the parties have agreed on a reduction. The fact that voluntary payments such as vacation or Christmas bonuses are canceled in the current situation is also likely to happen to other companies. If the clauses (e.g. a voluntary reservation in the employment contract) are clearly formulated under labor law, employers can unilaterally delete them. For example, some contracts define certain losses in sales or profits. In these cases too, the question arises as to whether a reduction or deletion must be reversed in the event of a “spontaneous recovery”. Seidler explains: “Some premium regulations provide for the reduction to be reversed if the economic result improves later.” But if such a mechanism does not exist, employers do not have to do so. “The employer can of course voluntarily pay more if the reduction appears unfair.”
The article was first published on February 10, 2026 and was supplemented on February 11, 2026 to include the employee’s demand and Christoph Seidler’s assessment. The post was updated again on March 4, 2026.
Justin Geschwill is a human resources volunteer.
As head of the online service, Gesine Wagner oversees the digital channels of human resources management and, as an editor, is primarily responsible for the topics of labor law, politics and regulation. She continues to be the contact person for everything that has to do with HR start-ups. She is also responsible for the CHRO Panel.
