VW will pay severance payments of up to 450,000 euros

Reduction of staff

23. Apr 2024

Reading time: about 2 minutes

Volkswagen lures workers to collective bargaining with generous severance pay. But: Not every employee is allowed to leave.

Volkswagen is offering employees with at least 20 years of service a retirement payment of up to €450,000. This is reported by several media outlets quoting company circles. The amount of retirement pay depends on the salary group and length of service. The range in which the deduction will be paid should be between €26,700 and €407,700, reports “Handelsblatt”. “Wirtschaftswoche” mentions €17,700 as the minimum limit.

Turbo Bonus of €50,000 more

Anyone who has worked for VW for at least five years and decides to terminate their employment contract by the end of May can also collect a “turbo bonus” of €50,000. Therefore, employees of a joint venture can expect a higher retirement payment of around €450,000. However, the condition is that the company also agrees to separate. Volkswagen obviously does not want to let every employee go. Major actors can be denied a golden handshake.

Who is eligible for a severance pay plan?

As VDI nachrichten learned from inner circles, three criteria must be met to qualify for the program. There must be a continuous, uninterrupted and unlimited employment relationship with Volkswagen AG. This affects salaried employees (including Tarif Plus) and employees on a time-based basis. But workers born in 1968 and below.

Even higher payments are excluded from management

No severance pay key has been delivered to non-tax management employees. However, it can be assumed that the severance pay may be higher than for collectively agreed workers. In addition, Volkswagen is also trying to achieve part of the cost reduction required for employees through partial retirement programs.