Well Rested, Better Paid: More Net From Gross Through Night Work in Hotels

Why the Night Shift Is Especially Worthwhile for Career Changers

By Gabriele Neufeld

Getting into the hotel industry does not only work through classic vocational training. The night shift in particular is a good way to gain initial experience as a career changer. And the job of night auditor comes with a financial advantage that not everyone has on their radar: night-shift premiums are largely free of tax and social security contributions. That leaves more in your pocket at the end of the day.

Please note:

This article looks at German law (as of 06/2026). In Austria, night-shift premiums are tax-privileged as well, but under different rules (monthly tax-free allowances instead of a percentage scale, different social insurance treatment) – a separate article will cover that.
Gabriele Neufeld, HR generalist at wilkon

Definition: Night-Shift Premium under § 3b EStG

A night-shift premium is a supplement on top of base pay that the employer pays additionally for night work actually performed. Within statutory limits such premiums are tax-free – and at lower hourly wages exempt from social security contributions as well.

The level up to which premiums are exempt from tax and social security contributions is set by law. In Germany the decisive factor is the time of day worked: up to 25 % of base pay is possible for night work between 20:00 and 06:00, and up to 40 % of base pay for the core period between 00:00 and 04:00 if the shift started before midnight.

A Short Sample Calculation

This means that the amount of the tax-free premiums depends a) on the hours worked and b) on the agreed hourly wage (apart from base-pay caps that are practically irrelevant in night audit). Our example shows which tax-free premiums are possible even if only the statutory minimum wage is agreed as base pay (as of 06 / 2026: € 13.90 / hour). For a night shift from 22:00 to 06:00 that means:

Tax-free night-shift premium – sample calculation at minimum wage (shift 22:00–06:00)
Base pay / hour € 13.90
Premiums free of tax / social security Max. percentage Maximum amount
22:00–24:00 up to 25 % up to € 6.95
00:00–04:00 up to 40 % up to € 22.24
04:00–06:00 up to 25 % up to € 6.95
Tax-free premium / shift (max.) up to € 36.14
Gross total / shift € 111.20 + € 36.14 = € 147.34
(equivalent to gross pay of up to approx. € 18.40 / hour)

The example in the table assumes the minimum wage and the maximum premiums free of tax and social security contributions. Even at the minimum wage this results in possible total gross earnings of approx. € 147.34 for a typical 8-hour shift starting at 22:00. Converted to an hourly figure, the premiums that can be granted tax-free at most yield a possible hourly wage of approx. € 18.40 – of which, as shown above, not everything has to be taxed. 

But be careful: The table only shows what the legislator permits to be tax-free – not what an employer (e.g. wilkon) actually pays. How high the night-shift premium really is is governed by collective agreements, for instance. And there the range is wide: in the hospitality collective agreements the night premium is usually between around 15 % (e.g. Lower Saxony) and 25 % (e.g. Bavaria and Baden-Württemberg), as a fixed value for the whole night (as of June 2026). Case law offers guidance on common premiums as well: the Federal Labour Court considers 25 % appropriate, and 30 % for permanent night work.

wilkon pays a fixed 30 % night premium and thus delivers higher net salaries

As in every collective agreement we know of, wilkon does without two different premium levels for the marginal hours and the core period — the administrative effort would simply be too high. Instead, wilkon pays 30 % for the period between 22:00 and 06:00. This makes it possible to exploit the tax options very well without inflating administration any further. The share of night premiums that is still taxable under the wilkon model barely matters in payroll. All the rest remains free of tax and social security contributions. On balance, the wilkon model enables a premium well above collective-agreement level – and almost all of it net.

» It is a bit of a shame that the German legislator has regulated tax-free night premiums in an unnecessarily complicated way. In Austria it works with monthly tax-free thresholds. That is far more pragmatic and immediately comprehensible for employees. The Austrian rule also relieves lower incomes in particular, which would of course be desirable for Germany too.«

What Does That Mean at the End of the Month?

To give you a better idea of what this actually means at the end of the month, we looked at and compared several real payslips. We’ll explain these examples in one of our upcoming posts here on the blog.

Sources

Disclaimer: 

This article provides a general overview of the legal situation at the time of publication and does not replace legal advice. For the assessment of an individual case, please contact a qualified body (e.g. a lawyer, a chamber of commerce or the Federal Employment Agency).

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