Car manufacturer Mercedes has informed its roughly 90,000 tariff employees in Germany that the annual special payment due in July will not be made for now. The company plans instead to pay it in April 2027 or possibly cancel it. Further cost reductions are under review.
The announcement was made Friday morning via circular to the workforce. The so-called transformation component amounts to 18.4 percent of individual monthly pay and is normally disbursed each July.
Mercedes expects the deferral to improve cash flow by a high double-digit million euro amount. The company will examine all special payments to determine which it can continue to afford.
Discussions with the works council on extending working hours without wage compensation are scheduled for the coming weeks. The group is based in Stuttgart, and the announcement was issued from Düsseldorf.
