Minimum Wage in Germany: Current Status and Over the Years, Compliance Monitoring of Salary Levels

§ Current Size of the Minimum Wage in Germany

Throughout the entire territory of Germany, in all federal states, the Minimum Wage Act (Mindestlohngesetz) is in effect. In accordance with this law, the Minimum Wage Commission (Mindestlohnkommission) decides on the amount of the Minimum Wage. The established general Minimum Wage applies to all people working in Germany, with some exceptions (see below).

The overall minimum wage in Germany as of today, Dec 03, 2024 is 12.41 euros gross per hour. With full monthly employment of 160 hours, this amounts to 1985.6 euros for one month of work.

Overall Gross and Net Minimum Wage

The overall minimum wage in Germany is 12.41 euros per hour. This amount is the gross salary, before deducting taxes and social contributions by the employee. Thus, the net amount received by the worker is less. See Deductions from salary in Germany for more information.

Minimum Wage for Production Sectors and Professions

In addition to the general minimum wage, some production sectors in Germany have industry-specific Minimum Wage rates (Branchenmindestlohn) determined through collective agreements between trade unions and employers in these industrial sectors. Higher Minimum Wage rates (15-50% higher) apply in these sectors. Check the current industry-specific Minimum Wage rates on the website of the National Statistics Office (links on the topic).

Exceptions to the Minimum Wage

The minimum wage rate does not apply to certain groups of workers, so employers have the right to pay them a rate below the current Minimum Wage. These groups include:

• Youth under 18 who have not completed vocational education;
• Trainees and interns;
• People who have been unemployed for an extended period, during the first 6 months of employment;
• Volunteers.

Specific conditions and exceptions apply to each group.

For information on the minimum pension in Germany, see the next page: Minimum, social pension in Germany

Requirements from Employers Regarding the Minimum Wage

The payment of the Minimum Wage must be made by the employer no later than the last banking day of the month following the month in which the work was performed.

Some additional payments, such as Christmas bonuses or vacation pay, may be included by the employer in the Minimum Wage amount, while others may not. Also, some supplements and allowances may be included in the Minimum Wage, such as for shift work or work on holidays, while others may not.

§ Minimum Wage in Germany Over the Years

The minimum wage in Germany is constantly increasing. The following table provides data on the change in the Minimum Wage from 2015 to 2024.

Table 1: Changes in the Minimum Wage in Germany Over the Years

Future Increase in the Minimum Wage

The Minimum Wage Commission also determines the future increase in the Minimum Wage in Germany. Below, you will find a list of planned future increases in the general minimum wage in Germany:

• С 01.01.2025 будет действовать ставка 12.82 €;

Chart 1. Changes in the Minimum Wage in Germany Over the Years

§ Monitoring Compliance with the Minimum Wage Law in Germany

For the purpose of monitoring compliance with the Minimum Wage, the law requires employers in certain sectors to keep records of the working hours of employees. For example, in construction, cleaning, logistics, freight transport, catering, and others. Timekeeping must also be maintained when working on a mini-job.

Monitoring compliance with the Minimum Wage law is carried out by the Customs Department of the FKS (Finanzkontrolle Schwarzarbeit). If an employer violates the Minimum Wage legislation, it becomes a case of illegal work, and the employer may face a fine of up to half a million euros.

Hotline

The German Ministry of Labor has introduced a hotline where you can ask any questions about the Minimum Wage. Contact information: 030-60280028, mindestlohn@buergerservice.bund.de

§ Questions and Answers on the Minimum Wage in Germany

Is the minimum wage different across the regions of Germany?

No. The overall size of the minimum wage in Germany (12.41 euros gross per hour) is applicable throughout the entire country in all regions.

Does the minimum wage apply to part-time work, such as mini-jobs (German: Minijob)?

Yes. Individuals working at the minimum wage, including those in mini-jobs, also have the right to receive a salary not below the minimum wage.

Where can one turn if the employer pays less than the minimum wage?

There can be various situations in which an employer might deceive an employee by paying a salary below the minimum wage, such as reducing the number of hours worked or paying a lower amount. To know what to do in a specific situation, one can contact the Ministry of Labor through the hotline for minimum wage or seek advice from a lawyer.

Does the minimum wage apply to foreigners working in Germany?

Yes. The working conditions for employees who come to work in Germany from abroad, whether hired in Germany or another country, are regulated by the Law on the Posting of Workers (AEntG). For foreigners working in Germany, the same minimum wage rates apply as for citizens of the country, regardless of whether they are hired by a German or foreign employer.

Does the minimum wage apply to overtime work?

Yes.

If the industry-specific minimum wage is higher than the general minimum wage, which one is applied?

The industry-specific minimum wage rate for the respective job applies, i.e., the higher one.

Minimum Wage in Germany