Hourly minimum compensation

Germany's statutory minimum wage, known as the Mindestlohn, sets the lowest hourly compensation employers must pay workers. As of 1 January 2026, the statutory minimum wage is 13.90 euros gross per hour. This rate applies to most employees in Germany aged 18 and over, regardless of industry or job classification, with limited exceptions for apprentices and workers in their first six months of employment.

The minimum wage is governed by the Mindestlohngesetz (Minimum Wage Act), which establishes the legal floor for hourly compensation and is enforced by the Zollkriminalamt (customs criminal office) and labour authorities. The rule covers all forms of work performed in Germany, including full-time, part-time, and temporary employment.

The German government adjusts the minimum wage annually based on recommendations from an independent commission that evaluates wage development and inflation trends. The increase to 13.90 euros effective 1 January 2026 reflects these periodic statutory adjustments designed to maintain purchasing power and align with economic conditions.

Employers and payroll teams must ensure all employee timesheets and wage calculations comply with this hourly floor. Violations can result in significant penalties, including fines up to 900,000 euros for systematic non-compliance. Payroll records must clearly document hours worked and gross hourly rates to demonstrate compliance. Employers should review employment contracts and wage structures to confirm no worker receives less than 13.90 euros per hour, accounting for all compensation components that constitute gross wages under German labour law.