VW is promoting the suspension of payments for higher payments – it is possible up to 454,700 euros

The Volkswagen Group has started informing its employees of the amount of severance pay that will be paid as part of a new savings plan. Information from “Business WeekAccording to this, the minimum severance payment can be 17,700 euros and the maximum can be 404,700 euros.

Top earners with 20 years of service at the company receive higher severance pay

This maximum amount applies to: VW-Employees who have been employed at Volkswagen for at least 20 years and fall into the highest “tax included” pay scale. A special incentive for employees who have been with the company for more than five years and accept a redundancy offer within two weeks will be what is known as an additional bonus of 50,000 euros. Both bonuses together amount to 454,700 euros.

To put it in perspective: According to the German Pension Insurance, the average salary of all insured employees is currently 45,358 euros per year. Average earners would have to work a good ten years to get the high VW deductible.

The regulation of retirement benefits is based on the principle of double commitment. According to the report, this means that the company and the employee must agree to the layoff. It is not yet known what the terms of the managers will be. According to the report, insiders suspect that the severance pay could be much higher.

VW wants to save ten billion euros in costs

The layoff plan is part of a broader layoff plan that Volkswagen began last week. The goal is to expand the retirement and retirement payment plan, which is scheduled to begin at the end of April.

VW wants to use the program to reduce its (labor) costs. Volkswagen AG aims to save a total of ten billion euros by 2026.

VW is one of the biggest German companies

Volkswagen is one of the largest German companies. By the end of 2023, the group had 684,000 employees. The entire company achieved sales of around 322 billion euros in 2023. The consolidated profit reached 17.9 billion euros. Each eligible employee received a bonus of 4,735 euros for 2023.

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