Back in 2018, backed by a huge profit, the company managed to pay its employees a record amount of money: 5,700 EUR ($6,290). Citing difficult conditions - without actually naming them - the carmaker said this year's pay will be a tad smaller than what was handed out a year ago, namely a total of 4,965 EUR ($5,650).
There are by Daimler’s calculations around 130,000 employees eligible for the reward, meaning the financial effort made to support the pay is of around 741 million EUR ($844 million).
“Our employees achieved a lot last year and showed untiring commitment day by day. We want to thank them for their outstanding commitment with the profit-sharing bonus,” said in a statement Wilfried Porth, Daimler’s head of Human Resources.
“We can always rely on the hard work and dedication of our employees, also in difficult times. The profit-sharing bonus of 4,965 euros rewards this performance and is an appropriate way of saying thank you.”
This habit of sharing the profit with the employees has been a common practice at Daimler since 1997. The formula used to determine the amount of money to be paid each year is part of the work agreement with the General Works Council.
This formula links the Group profit before interest and taxes (EBIT) with the return on sales.
Daimler said it recorded an operating profit of 11.1 billion EUR last year, well below the 14.3 billion EUR achieved in 2017, a situation which translates into a decrease of the bonus.
Each of the Daimler employees eligible for the bonus will receive their money this April, the German carmaker said. The scheme applies only to people working for Daimler at its facilities in Germany.