Ministries replace Christmas bonuses with performance pay

Although ministries say they don't pay Christmas bonuses, performance bonuses are handed out at year's end or early the next year and holiday parties are rebranded.
The Ministry of Culture does not issue Christmas bonuses, but it can award performance pay at the end of the year for meeting targets, exceeding expectations or taking on additional duties or workloads.
"Performance bonuses are not given to all employees and the amounts are still being determined," said ministry communications adviser Kerttu Kaldoja.
She added that the ministry's holiday gathering will be held on its premises and is still in the planning phase, so exact costs are not yet known. The budget cap is €14,000.
The Ministry of Finance also confirmed it does not provide Christmas bonuses, but does offer performance pay on top of base salaries. "We implement performance management, where bonuses depend on how well agreed-upon tasks are completed," said communications head Elina Kink.
The Ministry of Education does not pay Christmas bonuses either. "We have performance bonuses that are awarded throughout the year for outstanding execution of set goals and these are not connected to the holidays," said communications director Mari Annus.
"We're planning a year-end gathering to be held in a facility operated by one of our own educational institutions, partially organized with internal resources. Since the event hasn't happened yet and registration is ongoing, about 180 people are currently expected to attend and the budget is around €8,000," Annus explained.
The Ministry of Defense told ERR it does not pay out Christmas bonuses, nor does it hold a separate Christmas party for employees. Instead, it hosts a traditional ceremony, with a holiday event planned only for employees' children.
"The ministry uses a performance management system to motivate staff, meaning bonuses are awarded only when previously agreed targets are met. These bonuses come from the ministry's salary budget and the exact share will be determined after the end of the year," said communications chief Ines Edur.
The Ministry of Social Affairs does not issue Christmas bonuses and has no plans for a holiday party either. However, some employees may receive performance bonuses at the end of January.

"The performance bonus process begins in early January with performance reviews. Each employee's expected outcomes are agreed during those reviews and results are evaluated the following January. The ministry has developed detailed metrics for each employee and managers use scorecards to assess results," said communications director Karin Väljamäe.
According to her, it is not yet known whether, to whom or how much will be paid in bonuses for 2025. That will be decided after performance evaluations and depending on available budget.
The Ministry of Justice and Digital Affairs also does not pay Christmas bonuses. However, performance bonuses have been awarded throughout the year for employees who delivered exceptional results on specific projects or assignments.
"Nearly one-third of employees have received performance bonuses," said communications officer Evelin Allas.
The ministry is not organizing a holiday party for staff but is planning a small Christmas celebration for employees' children.
"The Ministry of the Interior does not pay Christmas bonuses and we are not holding a Christmas party," said communications chief Kaja Sepp.
"There are no year-end bonuses at the ministry. However, we believe it's appropriate to reward strategically important additional tasks or exceptional achievements," added HR head Aivi Sirp.
Climate Ministry communications director Kadri Peetersoo said the ministry does not hold a Christmas party, but does host a New Year's conference followed by a recognition event. "It costs €80 per person. Last year, 180 people attended and the same is expected this year," she said. That puts the event's cost at around €14,000.
While the ministry does not pay Christmas bonuses, it does distribute performance bonuses at the end of the year. "We are a results-oriented institution. We've paid out bonuses every year since the ministry was founded, typically amounting to about 80 percent of an employee's monthly salary," Peetersoo said.
The Ministry of Regional Affairs and Agriculture has already held its recognition event, spokesperson Risto Kaljuste confirmed.
"The event cost the ministry about €14,000. Each participant paid a €15 fee and 150 people attended. No Christmas bonuses are paid to employees," Kaljuste said.

The Ministry of Foreign Affairs also does not pay Christmas bonuses but does award performance bonuses.
"We follow a performance management model. The past few years have been full of crises and performance bonuses have been a way to recognize employees' outstanding contributions to the ministry's work," said media director Kerstin Meresma.
"Not all employees receive a bonus and the amounts vary. Each person's contribution is assessed individually. The performance bonus budget is unchanged from last year and averages 4.4 percent of annual base salary," Meresma added.
The ministry is organizing a pre-holiday gathering, with a €15 participation fee. Up to 200 people from the main office and foreign missions are expected. The planned budget is €13,000, which includes the participation fees.
No Christmas or year-end bonuses are paid by the Ministry of Economic Affairs and Communications, said public relations head Laura Laaster.
"A year-end recognition event will take place in December with a budget of €35,000. All employees pay a €20 participation fee for the event and guests pay €35," Laaster said.
"Performance bonuses are planned this year, but work plans will be reviewed in January. Only then will we know who will receive a bonus and how much," she added.
Substantial bonuses are also being paid out at other government institutions — for example, the director of the Office of the President is receiving €10,500.
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Editor: Mari Peegel, Marcus Turovski










