Minimum Wage in Germany: Rates, Trends & Compliance

What Is the Minimum Wage in Germany?

As of January 1, 2025, Germany's statutory minimum wage is €12.82 per hour. This increase from the previous rate of €12.41 per hour reflects the country's commitment to ensuring fair compensation for its workforce. Some industries, such as the temporary employment sector, have negotiated higher minimum wages, reaching €14.53 per hour from March 2025 to September 2025.

With plans to increase the minimum wage to €13.90 per hour by January 1, 2026, followed by a further increase to €14.60 per hour by January 1, 2027, businesses should stay informed about upcoming policy changes to remain compliant and competitive in Germany's labor market.

How Does Minimum Wage Apply to Different Workers in Germany?

The statutory minimum wage in Germany applies to all employees over 18 years of age. However, certain groups are exempt, including trainees under the Vocational Training Act, volunteers, individuals in voluntary service, participants in employment promotion programs, home workers under the Home Work Act, self-employed persons, youths under 18 without completed vocational training, and long-term unemployed persons during the first six months of re-entering the labor market.

Full-Time Employee Wages

Full-time employees in Germany are entitled to the statutory minimum wage of €12.82 per hour. However, certain industries have collectively agreed upon higher minimum wages. For instance, the temporary employment sector has a higher minimum wage rate of €14.00 per hour from November 1, 2024, to February 28, 2025, and €14.53 per hour from March 2025 to September 2025.

Part-Time Employee Wages

Part-time employees are entitled to the same minimum wage of €12.82 per hour as their full-time counterparts. The law ensures that part-time workers receive equal pay for equal work, preventing any disparity based solely on working hours.

Interns and Trainees

Interns and trainees are generally exempt from the statutory minimum wage under specific conditions. This exemption applies to trainees under the Vocational Training Act and to interns who have not completed any vocational training. However, these exceptions are subject to case-by-case assessments.

Expats

Foreign workers employed in Germany, including expatriates, are entitled to the statutory minimum wage of €12.82 per hour, regardless of whether they are employed by a domestic or foreign employer. This ensures fair compensation for all workers within the country.

Factors Influencing Minimum Wage in Germany

Several factors influence the minimum wage in Germany, including industry-specific variations, economic conditions, and government policies.

Industry-Specific Variations

In addition to the general statutory minimum wage, certain industries have higher, collectively agreed-upon minimum wages. For example, the temporary employment sector has a minimum wage of €14.00 per hour from November 1, 2024, to February 28, 2025, and €14.53 per hour from March 2025 to September 2025. These variations are often due to the specific demands and conditions of each industry.

Economic Conditions

Economic factors such as inflation and employment rates play a significant role in determining the minimum wage. The Minimum Wage Commission evaluates these conditions to recommend adjustments that ensure fair compensation without adversely affecting employment levels.

Government Policies and Legislation

The German government, through the Minimum Wage Act, establishes the statutory minimum wage and periodically reviews it based on recommendations from the Minimum Wage Commission. This process ensures that wage adjustments align with current economic conditions and labor market dynamics.

Minimum Wage History and Trends in Germany

Germany introduced its first nationwide statutory minimum wage of €8.50 per hour on January 1, 2015. Since then, the minimum wage has seen several increases, reaching €12.82 per hour as of January 1, 2025. There are plans to increase the minimum wage to €13.90 per hour by January 1, 2026, followed by a further increase to €14.60 per hour by January 1, 2027.

How To Stay Compliant When Hiring in Germany With Playroll

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. That's the advantage of using a trusted Employer of Record like Playroll:

• ‍Scale your global team: Legally hire and swiftly onboard new hires in 180+ regions without the red tape by offloading the HR admin to Playroll, so you can freely explore new markets and focus on growth.
• ‍Pay your team accurately: Ensure your international employees and global contractors are paid on time, every time, and set up centralized global payroll processes.
• ‍Meet minimum wage requirements: Our built-in compliance checks and vetted contracts mean your agreements will always meet all legal requirements for statutory benefits, minimum wage, and more.