Besides the statutory pension, employees are entitled to benefits under the company pension plan. For example, employees receive a monthly payment if they draw a retirement or disability pension. These benefits are provided without cost to our employees.
This enables employees to top up their company retirement pension by means of so-called capital-forming benefits (vermögenswirksame Leistungen). The benefits cover a lifelong monthly pension and a pension for surviving dependants.
Employees wishing to provide even more for their old age may choose deferred compensation. This means that some of the holiday allowance, annual bonus or regular monthly salary is converted into a retirement pension. These sums are exempt from tax and social security contributions. At the same time, OTTO supports this employee-financed pension by paying a 10% contribution provided that social security contributions are saved in connection with the conversion.
Employees desiring to continue a direct insurance or pension fund they had with their previous employer are welcome to do so. The Otto Group transfers the previous contracts to contracts with our insurance partner.
Of course, our employees have the opportunity to enter into a private retirement plan based on a fund-linked or traditional annuity insurance, obtaining the so-called “Riester” benefits from the state. Given the size of the Otto Group, these contracts generally offer considerably more favourable terms than individual contracts concluded by private persons.
Due to our corporate size we can offer you especially favourable terms for private occupational disability insurance.
The salary is as individual as your qualification and performance. Collective wage agreements form the foundations of this calculation. Employees that do not fall under the collective agreements may also receive a voluntary bonus on top of a fixed salary. For junior managers, there are salary development plans that set specific targets. In addition, their salaries are reviewed twice a year.
Whether you call it a bonus or Christmas allowance – it currently amounts to 100% of the salary for November to which you are entitled according to your classification under the collective agreement. A part of this is granted in the form of vouchers for employee purchases. In addition, we pay holiday or vacation benefits under collective agreements.
Employees are currently entitled to a 15% discount on the entire range. This covers not only the OTTO catalogue, but many products and services by the group companies, i.e. Alba Moda, Baur, bon prix, Eddie Bauer, Frankonia Jagd, Heine, Schwab, Sport Scheck or Witt. Employees also receive discounts on holidays. OTTO Freizeit and Touristik offers a 5% rebate on all bookings.
Employees may acquire different packages of profit-participation certificates and participate in the success of the business. Or as Dr. Michael Otto puts it: “By offering this form of participation, we want to make employees into partners in the business and underscore how vital the commitment and input of every single employee is and just how much it pays off.” And he's right!
Otto contributes towards the purchase of the HVV ProfiCard ticket, which covers all public means of transportation in Hamburg. Together, we also contribute towards sustainability of the work-life.