Germany’s statutory minimum wage as of 1 January 2026 and its implications
From 1 January 2026, the nationwide statutory minimum wage will be raised again.
The following minimum wages must be observed in future:
1 January – 31 December 2025: 12.82€
1 January – 31 December 2026: 13.90€
1 January – 31 December 2027: 14.60€
For monthly or annual fixed remuneration and for piece wage, the hourly wage must be calculated. The calculated hourly wage may not under any circumstances be less than the minimum wage.
The minimum wage applies to places of employment in Germany, regardless of the nationality of the employee or their place of residence. The location of the employer’s headquarters is also irrelevant. This means that cross-border commuters, migrant workers and seasonal workers are also covered by the regulations.
Salary components can be counted toward the minimum wage if they are paid as compensation for the work performed and are paid in cash.
The name given to the payment (such as “special payment” or “Christmas bonus”) does not matter, as long as the payment clearly has the character of wages and is paid on a monthly basis by the due date.
Remuneration payments to which there is no entitlement, e.g. tips, are not taken into account. Other examples that cannot be counted towards the minimum wage are night work bonuses, payments to reward loyalty to the company and fringe benefits. If the minimum wage entitlement is not already met by the basic wage, the remuneration components should therefore be checked carefully.
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ATTENTION: Increase in mini-job limit!
The monthly earnings limit for mini-jobs has been dynamic since October 2022 and is linked to the statutory minimum wage. If the general minimum wage is increased, the mini-job earnings limit also rises.
As of January 2026, it will increase to 603€ per month.
Note: The mini-job earnings limit will be increased to 603€ effective 1 January 2026. As a result, mini-job employees may continue to work 43.38 hours per month.
Exceptions from the minimum wage
Exceptions from the minimum wage apply only to a few legally defined groups of people.
The following do not fall under the provisions of the Minimum Wage Act:
- Interns who complete a mandatory internship as part of their school education, vocational training, or university studies.
- Voluntary internships during studies or vocational training are exempt for up to three months, provided that no previous internship relationship with the company has existed.
- Voluntary internships for career orientation or for choosing a field of study are also exempt from the minimum wage for up to three months.
- Persons under 18 years of age without completed vocational training.
- Apprentices/trainees (ATTENTION: minimum training allowances have applied since 1 January 2020).
- Volunteers engaged in honorary/voluntary service.
- Long-term unemployed persons (during the first six months of employment).
For interns, a written internship agreement must be signed before the start of the internship.
In addition, appropriate documentation from the university or training institution must be included with the payroll records (e.g. study or training regulations, certificate of enrollment).
ATTENTION:
Payment below the statutory minimum wage is not permitted, except for the groups of persons listed above.
If collective bargaining agreements provide for a lower collectively agreed minimum wage than the statutory minimum wage, the statutory minimum wage of EUR 13.90 shall apply.
Record-keeping obligations
The Minimum Wage Act imposes special record-keeping obligations for all mini-jobs and short-term employees (with the exception of mini-jobs in private households) and, in addition, for all employees in the following sectors:
- Construction industry
- Meat industry that does not meet the meat requirements of Section 2 No. 2 GSA
- Catering and accommodation industry
- Passenger transport industry
- Freight forwarding, transport, and logistics industry (including platform-based delivery services)
- Fairground and showmen’s trade
- Building cleaning industry
- Companies involved in the set-up and dismantling of trade fairs and exhibitions
- Prostitution industry
- Guarding and security industry
- Hairdressing and cosmetics industry
The employer must record the start, end, and duration of the daily working hours of employees.
These records must be available to the employer no later than the end of the seventh calendar day following the day on which the work was performed.
The records must be retained for at least two years, but it is recommended to keep them for four years.
The Minimum Wage Documentation Obligations Ordinance has relaxed the record-keeping requirements for persons with a monthly gross salary exceeding 4,461€, or 2,974€ (since 2025), provided that employment has lasted for at least a full 12 months, as well as for certain family members.
Record-keeping obligations under other laws remain unaffected by the Minimum Wage Act.
Accordingly, the employer is required to record any working time exceeding eight hours per working day.
In addition, sector-specific record-keeping obligations apply under the Posted Workers Act for certain industries.
Working time accounts under the Minimum Wage Act (MiLoG)
Reduction of the minimum wage due to overtime is possible only if the employer and employee have agreed in writing in the employment contract to a MiLoG working time account. Overtime hours that would reduce the minimum wage must be recorded on this account and compensated within twelve months either through paid time off or by ensuring payment of the minimum wage. In addition, the hours recorded each month may not exceed 50% of the monthly contractually agreed working hours.
General contractor liability
Clients are strictly liable, regardless of fault, under contracts for work and services, to ensure that their contractors and subcontractors pay the minimum wage to their employees. Therefore, careful verification is always recommended when commissioning subcontractors. It is also advisable for the client to obtain confirmation of minimum wage payments and a release statement from the contractor.
Administrative offenses and fines
Violations of the minimum wage or the record-keeping obligations constitute administrative offenses.
- For violations of minimum wage payment, fines of up to 500,000€ may be imposed.
- In addition, fines or criminal proceedings may arise due to unpaid social security contributions.
- Violations of record-keeping obligations can result in fines of up to 30,000€.
- For fines exceeding 2,500€, exclusion from the awarding of public contracts may also occur.
