PAYROLL REGULATIONS: GERMANY

Minimum wage

From 1 January 2021 onwards, the minimum pay amounts to gross 9.50 euros per hour worked and from 1 July 2021 onwards, the minimum pay amounts to gross 9.60 euros per hour worked.

From 1 January 2022 onwards, the minimum pay amounts to gross 9.82 euros per hour worked and from 1 July 2022 onwards, the minimum pay amounts to gross 10.45 euros per hour worked.

The minimum wage is a gross payment that is calculated and disbursed as a monetary consideration. An alternative non-monetary remuneration where the employer grants certain benefits, that is, in a form other than money, is not permitted.

In addition, there are minimum wage requirements in collective bargaining agreements which are often higher than the nation-wide minimum wage requirements and which, however, depend on the industry and occupational group.

Working hours

The working day of the employee may not exceed eight hours. It can only be extended to up to ten hours if within six calendar months or within 24 weeks an average of eight hours on working days is not exceeded.

Overtime premiums form part of the conditions of employment within the meaning of Article 5 (1) of the Posted Workers’ Act (Arbeitnehmer-Entsendegesetz – AEntG)

Breaks

The work is to be interrupted by a predetermined rest period of at least 30 minutes for a working time of more than six up to nine hours and 45 minutes for a working time of more than nine hours. The breaks can be divided into periods of at least 15 minutes each.

Rest period

After completing their daily working hours, employees must have an uninterrupted rest period of at least eleven hours.

Leave

Pursuant to the Federal Holiday Act, the entitlement to paid annual holidays amounts to at least 24 working days every year. Collective agreements shall not deviate from this entitlement to the detriment of employees.

In various industrial sectors, collective agreements lay down a higher entitlement to annual holidays.

The amount of an employee’s entitlement may depend on certain criteria such as age, length of service, or others.

Registration requirements

In general, foreign-domiciled employers who post workers to Germany to carry out work or to provide services are required to register the posting. In Germany, different types of registration obligations apply depending on the industry or branch of the employer.

The registration needs to be submitted at least the day before the employee starts performing work in Germany.

Any employee performing work or providing services in Germany – even if only for a day – could be considered as posted worker subject to registration obligations. However, if the employee does not perform actual work or services but visits Germany for business reasons only, he/she is not bound by any registration requirements.

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