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Monthly revenue share can increase your parental allowance

10.12.2019

The Regional Social Court Celle-Bremen has strengthened the rights of parents who, in addition to their salaried employees, also receive monthly turnover shares from their employers.

The reference number is: L 2 EG 7/19 - 06 November 2019

The facts of the case:

An employed dentist received a basic salary of 3,500 Euros per month from her employer and a share of the turnover, which fluctuated between 140 Euros and 2,300 Euros per month. After the birth of her child, she applied for parental allowance from the municipality of Bremen. When calculating the entitlement, the municipality did not take the turnover shares into account. As justification, it took the view that this part of the income was treated as "other income" for tax purposes and thus did not increase the parental allowance. It could also not be regarded as current remuneration because it was only paid if certain minimum amounts were exceeded.
The Court Celle-Bremen has condemned the municipality to take account of the turnover shares.

Justification:

In the opinion of the Higher Social Court, this are current payments, since the shareholdings are calculated and paid on the basis of one month in accordance with the employment contract agreements. The participation thus belonged to a wage payment period and had to be added to the wage, such as overtime pay. The details of the calculation were also not decisive, but only the payment period. As long as the required concordance between the monthly period and the variable wage component is maintained, this also affects the parental allowance.

Because of its fundamental importance, the Senate has approved the revision. It is not yet known whether the parental benefit office will bring the case before the Federal Social Court.

However, the judgement does not concern the more frequent case of the annual bonus, the judgement rules higher monthly wages on the basis of monthly sales bonuses.

Previous instance
SG Bremen, court decision of 08.07.2019 - S 12 EG 1/18

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