Hourly minimum compensation

Germany's statutory minimum wage, effective 1 January 2026, is 13.90 euros gross per hour. This rate applies to all employees in Germany aged 18 and above, regardless of sector or employment type, with limited exceptions for apprentices and workers under 18 years old during their first six months of employment.

The minimum wage covers all compensation paid for work performed, including base salary, bonuses, and allowances. Employers must ensure that total hourly earnings meet or exceed this threshold when calculated across the pay period. The rule applies to both full-time and part-time workers, as well as those on fixed-term contracts.

The statutory minimum wage is governed by the Mindestlohngesetz (Minimum Wage Act), which establishes the legal floor for compensation and is enforced by the Zollkriminalamt (Customs Criminal Office) and labour authorities. The rate is adjusted annually, typically on 1 January, based on recommendations from an independent commission that considers wage development and economic conditions.

The 2026 increase from the previous rate reflects ongoing statutory adjustments mandated by the Minimum Wage Act. Employers must document compliance through payroll records and ensure all wage statements clearly show hourly rates and total compensation. Non-compliance carries significant penalties, including fines up to 900,000 euros and potential criminal liability for deliberate violations. Payroll teams must update systems to reflect the new rate and audit historical records to confirm all employees have received compliant compensation throughout the applicable period.