The minimum wage is the smallest amount of money that employers are legally allowed to pay someone who works for them, and it varies widely in different countries.
If you’re considering working in Germany, the minimum wage law may impact your pay as it applies to both nationals and foreign workers.
Here at Remitly, we’ve put together this guide to help you understand the German minimum wage and how it could affect you.
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The German minimum wage
In Germany, minimum pay is defined by the Minimum Wage Act (“Mindestlohngesetz”), commonly abbreviated to MiLoG.
The German government (“Bundestag”) introduced this legislation on January 1, 2015, and it was most recently amended in June 2023.
Previously, Germany only had minimum wages in specific sectors, negotiated by trade unions through collective bargaining and collective agreements.
According to the German Federal Statistical Office (“Statisches Bundesamt”), the number of low-wage jobs has fallen since the introduction of minimum wage.
Research from the Institute for Employment Research (“Institut für Arbeitsmarkt- und Berufsforschung”) notes that in hairdressing, a traditionally low-wage sector, the minimum wage law has increased salaries considerably.
What is the current minimum wage in Germany?
As of January 2024, the statutory minimum wage in Germany is 12.41 EUR per hour. This will rise to 12.85 EUR per hour by January 2025. The national minimum wage applies to both full-time employees and part-time workers.
The Minimum Wage Commission (“Mindestlohnkommission”) regularly proposes minimum wage increases or other adjustments to the minimum wage level.
Recently, the German Trade Union Confederation recommended increasing the minimum wage to 14 EUR per hour, with some politicians calling for a 15 EUR hourly rate.
Following the collapse of the current coalition government, a federal election is now scheduled for February 2025, so this is likely to be a hot topic of discussion in the German parliament.
Wage variations in Germany
Germany still has set branch-specific minimum wages for various sectors. In cases where these are lower than the national minimum of 12.41 EUR per hour, the statutory minimum wage still applies by law as the lowest earnings limit.
Wide pay variations exist across sectors, mainly due to labor costs and fluctuations in the labor market, as well as differences in demand for skills.
The highest wages are found in Professional and technical fields, including finance, insurance, information technology, and communication.
On the other hand, industry and service sectors, including hospitality and food service providers, receive the lowest wages.
While the German federal government is working to reduce the gender pay gap to 10% by 2030, women still earn 18% less than men.
However, the gap is smaller in certain federal states—particularly in eastern Germany, at 7%—and in the public sector.
Evidence shows that introducing a statutory minimum wage has helped to narrow the gender pay gap, particularly for lower-paid workers.
Exemptions from the German minimum wage
In Germany, the minimum wage does not apply to certain internships, including mandatory ones that you may undertake as part of a university course.
However, there is a minimum wage specifically for those taking part in vocational training (“Ausbildung”). Salaries depend on profession and location, and usually increase after the first year of training.
The minimum wage also doesn’t apply if you’re self-employed or have re-entered the job market after a long period of unemployment. In the latter case, you won’t be eligible for the first six months of your employment.
Children are allowed to have part-time jobs in Germany from the age of 13, but they can only receive the minimum wage at 18. The country’s legislation limits the types of work and hours for people under 18.
Germany’s mini-jobs: what are they?
You’ve probably come across the term “mini-job” in German media. These are jobs where you cannot earn more than a set monthly salary, or those that only offer short-term employment for a few weeks or months.
These jobs are particularly desirable to students, pensioners, and single parents.
There are two kinds of mini-jobs in Germany:
- A mini-job with an income limit (“mit Verdienstgrenze”). You can earn a maximum of 538 EUR per month or 6,456 EUR per year.
- A short-term contract (“kurzfristige Beschäftigung”) in which you work less than three months for a five-hour week, or 70 working days if you work less than five days per week in a year. There are no restrictions on how much you earn during this time.
Mini-jobbers are also entitled to the minimum wage. If you think a mini-job is for you, find out more information about your rights, taxation, and entitlement to benefits.
The minimum wage in context: cost of living in Germany
Critics of the minimum wage point out that the pay increase is partly offset by hikes in cost of living around the country. This is especially notable in some large cities like Berlin, Munich, and Stuttgart, where rents are high.
However, if you live in a smaller city and manage your expenses carefully, you can live comfortably on the minimum wage. Take a look at these money-saving tips for some ideas.
How does the German minimum wage compare to other countries?
Germany’s minimum wage is the second highest in the European Union, after Luxembourg. Some neighboring countries in Europe compare favorably, such as the Netherlands with a minimum wage of 13.27 EUR per hour.
In contrast, Russia has a minimum hourly wage of approximately 0.65 EUR, and Ukraine approximately 0.97 EUR.
Legal rights and employment tips
- If your employer isn’t paying you the minimum wage, they are in violation of the law. The first step is to request this in writing. If your employer still refuses, you can take legal action against them through the Federal Labor Court (“Bundesarbeitsgericht”).
- Germany has strong data protection laws, so your personal data will be safe throughout this process.
- Remember that if you work in Germany, you have to pay taxes and make social security contributions. If you work illegally, you could face expulsion or deportation, and there could also be serious consequences for your employer. Take a look at our guide on how to file taxes in Germany.
Resources
- For more information about employment in Germany, the Federal Ministry of Labour and Social Affairs has plenty of useful guidance available in English and German. To find out more about the German national minimum wage, check out their English-language guide.
- To learn more about finding a job in Germany, try the official German government guide for skilled workers, Make it in Germany.
FAQs
The minimum wage in Germany is 12.41 EUR per hour, which is defined by the Minimum Wage Act (“Mindestlohngesetz”, MiLoG) that was introduced by the coalition government between the SPD and the CDU.
Germany’s statutory minimum wage stipulations apply both to German nationals and foreign workers.
Germany’s minimum wage was most recently amended in June 2023.
