The salary payment marks the final step in the monthly payroll process. It's the specific act where the net amount (payout amount) shown on your payslip is actually transferred to you as an employee. In doing so, your employer fulfills their main contractual obligation within the employment relationship: paying the agreed compensation for your work. This step is of immediate importance to you as it secures your financial foundation. The expectation is clear: the payment must not only be for the correct amount but, above all, must be made on time.
In Germany today, salary payments are almost exclusively made via bank transfer to your specified checking account. Cash payments have become extremely uncommon and are associated with significant documentation issues, while payment by check is also not common practice. The crucial factor is the timing of the payment, known as the due date. According to Section 614 of the German Civil Code (BGB), compensation is only due after the work has been performed, which for a monthly salary would technically be the first day of the following month. However, common practice differs: most employment contracts, collective bargaining agreements, or established company practices specify an earlier payment date. The typical arrangements are:
- Payment at the end of the month (e.g., on the last banking day of the current month).
- Payment is due on the 1st of the following month.
- Less commonly, especially for hourly wages, payment is made in the middle of the following month (e.g., on the 15th).
It is essential that the agreed payment date is clearly communicated and reliably adhered to by your employer. The timely transfer of wages, for instance for the current month of April 2025 which is drawing to a close, is a fundamental expectation.
The importance of timely and accurate salary payments cannot be overstated. It is a crucial factor in maintaining trust between you and your employer. Punctual payments signal reliability, appreciation, and the company's financial stability. For you as an employee, it's essential for your own financial security and planning—rent, loans, and other ongoing expenses need to be paid on time. Delayed payments, on the other hand, quickly lead to uncertainty, stress, and demotivation. They can be perceived as disrespectful and cause lasting damage to employee satisfaction and loyalty to the company. Moreover, late payments have legal consequences: your employer falls into payment default, which may entitle you to claim default interest or even take legal action under employment law, such as issuing a formal warning. In contrast, a flawless payment process strengthens the company's image as a reliable partner.
From a technical perspective, payroll disbursement requires the creation of appropriate payment files (e.g., in SEPA format) that are then submitted to the bank. This process is handled either by the internal payroll department or the external service provider who prepared the payroll calculations. This final step builds upon the results of the previous phases: careful data collection (preparatory payroll accounting) and accurate calculation (payroll processing). Even though companies like HelloBonnie offer innovative benefits, the timely and accurate payment of base salary remains the absolute foundation. Such reliable core service ensures that additional perks and benefits are positively received and appreciated by employees.