Minimum wage in germany The distinction between gross and net salary, which can exceed EUR 500, greatly affects the actual income of employees. 85 [63] 17. For a 40-hour week, that’s around 2. 41 per hour, which works out to a gross salary of €2,151 a month or €25,813 a year, if we consider the typical full-time work week of 40 hours. 2 % 57. 41 is to take place next year, with a second boost to follow Learn about the current status, history, and enforcement of the minimum wage in Germany, which is €12 per hour as of 2023. Germany leads among EU countries in terms of minimum wage. 000 EUR in Dec 2024. Minimum wage is hourly, not monthly. 41 per hour, pre-tax since 1 January 2024. Employer’s duties to pay minimum wage. The legislation (German: Gesetz zur Regelung eines allgemeinen Mindestlohns) was introduced on January 1, 2015, by Angela Merkel's third government, a coalition between the SPD and the CDU. The Federal Government has set up a standing Minimum Wage Commission to adjust the minimum wage amount. It should be noted that the given figure is not the legally mandated minimum wage; rather, it represents the lowest figure reported in a salary survey that included thousands of participants and professionals from all The minimum wages are revised in Germany from 01 October 2022. A general statutory minimum wage went into effect in Germany on 1 January 2015. Yes, we have for a few years now a minimum wage, but that is only half the story. 053 euros gross a month. The national minimum wage in Germany is €12. However, there are certain exceptions to this rule such as working in a university or pursuing an internship. Minimum wage was only introduced in Germany in January 2015. What is the minimum wage in Germany? As of July 2021, the minimum wage in Germany is €9. Compare the minimum wages in the EU and access the data sources and quality reports. As of 2024, the minimum wage in Germany is EUR 12. This means no employer may pay less than this hourly wage. Before it was enacted, collective bargaining agreements were the main way wages were determined in Germany, and The problem with German minimal wage is it is official and real salary. 41 at the moment. 85 EUR per hour by January 2025. Salary Range, Minimum Wage, and Starting Salary. Through a one-off law amendment the What is the Minimum Wage in Germany for 2024? The minimum wage in Germany for 2024 is €12. 45 in July, and finally, to € Germany’s general statutory minimum wage has been established on 1 January 2015. Several minimum wage studies in Germany are a priori based on the neoclassical presumption. As of January 1, 2024, the minimum wage is 12,41 euros per hour. 7 % other countries 60 % threshold Statutory minimum wages in relation to national wage levels Minimum wage as percentage of median wage (Kaitz Index), 2020 Source: WSI Minimum Wage Database 2022, OECD The minimum wage in Germany has evolved as follows since 2015: Starting at €8. Tax free inflation bonus. Before it was enacted, collective bargaining agreements were the main way wages were determined in Germany, and Germany’s minimum wage law is extremely new — it was only passed in 2015, when Prime Minister Angela Merkel made a power-sharing deal with the German Social Democratic Party that included the enactment of a national minimum wage. 35 per hour (as of 1 January 2020). It was introduced to protect workers in Germany from unreasonably low wages. The minimum wage is regulated by the Minimum Wage Act, which was evaluated in 2020. There are legal minimum wage requirements, which ensure that every worker receives at least a certain hourly wage. 41 per hour. EU countries by minimum wage in 2024. 41 euros per hour as of 1 January 2024. Accordingly the The minimum wage in Germany is set to rise in two stages from the current €12 to €12. Typically, you are paid at least minimum wage unless certain conditions apply (under 16, etc. The minimum wage limit in this category is €12. 000 EUR for Jun 2024. 1 Minimum wage in Germany (2024) The legal minimum wage (gesetzlicher Mindestlohn) in Germany increases annually. The minimum wage in Germany is around 12 € per hour. 45 to €12. It applies to all workers aged over 18 and is typically reviewed every two years. 41 per hour, translating to €2,054 gross per month salary or €99. 41 € per hour. 41 an hour for 2024. However, this rule has some exceptions, including trainees and certain Germany, minimum wages existed in specific sectors only. 7 % 62. Maps. Only a few groups of people are excluded, such as German Chancellor Olaf Scholz made raising the minimum wage a key plank in his election platform and, on Friday, lawmakers passed a bill increasing the minimum wage to €12 ($12. 41 euros an hour. 50 do we see an increase in unemployment in the West compared with the benchmark case without a minimum wage. The first increase to €12. 00 per hour by October 1, 2022. For more information on changes, please refer to the minimum wage pages: Minimum Wage. r/punk. Full-time roles, especially in high-demand sectors like IT, engineering, and healthcare, offer The statutory minimum wage in Germany will increase to €12 per hour, effective October 1, 2022. The minimum wage (Englisch) Flyer. Not everyone works the same amount of hours. 5 million in April 2022 from April 2018. 45 per hour. Key Facts on Average Salary in Germany . The national minimum wage applies to both full-time Minimum wage laws in Germany are designed to ensure that workers are paid a fair wage for their labor. The minimum wage (Mindestlohn) in Germany is 12. Net income. 4. New Zealand Korea France United Kingdom Germany 64. 41 euros ($13. Stephan L. 4% to 12. Nobody is living with only minimal wages, there are always the hidden source of income (at least this is true for former soviet countries) What is the minimum wage in Germany? As of January 1st, 2024, the minimum wage in Germany is 12,41 euros per hour. Conversely, the gap between the 90th and the 50th percentile may be reduced. 3 Such sector-specific minimum wages have been introduced, for example, in the con-struction sector, for electricians, roofers, and painters. 50 in January to €9. Read also: How Germany’s revised immigration law aims to address labor shortages There has been a general statutory minimum wage in Germany since 1 January 2015. This defines the lowest wage limit for virtually all workers. What is the minimum wage in Germany? In Germany, there is a statutory minimum wage of €12. e. 03 (38 h/week) [62] €12. From January 1, 2025, it The introduction of a statutory minimum wage in Germany in 2015 aimed at improving the welfare of low-wage workers but was also accompanied by concerns about distortions in Europe’s largest economy. A possible related decline in employment was hardly noticeable. Compared to other countries, Germany was and still is a nation with relatively well-organized trade unions and relatively effective collective bargaining agreements on setting pay. This means before taxes and other charges are deducted from this amount. The treatment effects on the treated establishments show a significant increase in personnel costs. Assuming that the labor market is close to being a perfect market, and hence the initial situation is a competitive equilibrium, the introduction of a wage floor implies a movement along the labor demand curve. Trainees and au pairs have a lower minimum wage. 45 by 2022. 3. ; The minimum wage is 12,41 € per hour. Your salary should match the local cost of living. With a minimum wage of 13. 2024), you have to work a maximum of around 10 hours per week or around 40 hours per month for this amount. The recent history of minimum wage regulation in Germany 3 The main procedure for establishing sectoral minimum wages in Germany was initially established for the construction industry through the transposition of the European Union’s Posted Workers Directive in 1996. As a full-time student, you do not The minimum wage is the lowest legal amount employers must pay their workers for their labour. Assuming a full-time employee works 40 hours a week, the monthly earnings at minimum wage would be approximately €2,080 per month before taxes or €24,960 per year. 6% of median salaries in Germany was represented by minimum wages. 50 gross per hour, it ranked among the highest wage The largest wage increases, triggered by a minimum wage of €8. This was an increase of 41 cents from 2022. It's 12. Starting October 26th, 2022, employees can receive a maximum of €3. Employees aged 18 or above are entitled to the minimum wage. For a full-time job, this corresponds to a minimum wage of 2,054 euros gross per month. For more information on changes, please refer to the minimum wage pages: The minimum wage (Mindestlohn) in Germany is 12. Examining the minimum wages across EU countries reveals significant disparities. 4 percentage points, or 5% of the rate observed before the introduction. 60 in July. 1 Minimum wage analysis in the neoclassical spirit. Exceptions include certain internships, mandatory traineeships, and anyone under age 18 who has not completed vocational training. The national minimum wage applies to both full-time employees and part-time workers. This threshold safeguards the interests of both local and foreign workers by preventing undercutting of wages and maintaining a balanced job market. Salaries are paid monthly. ). A number of projects evaluated these minimum wages: Ko¨nig and Minimum wages in Germany are usually negotiated every two years. Note: The values for the real minimum wage are rounded to 10-cent amounts. Minimum wage violations can result in penalties of up to €500,000. It is subject to review and adjustments every two years by the government. In this article, we analyze the effects of the introduction of the German minimum wage using difference-in-differences estimations applied to the IAB Establishment Panel. Płaca minimalna (Polnisch) Flyer. Since 1 October 2022, the minimum wage has been EUR 12. Nearly one in five persons in dependent employment (19%) worked in the low-wage sector in Germany in April 2022. Payday. f January 2024 and provided the basis for the average salary in Germany. 82 per hour to €12. This hourly rate serves as the legal minimum Find out the current and future minimum wage level, the number and share of minimum wage jobs, and the low-wage sector in Germany. From January 2024, the new minimum wage in Germany was 12. Before 2015, there was no generally applicable statutory minimum wage in Germany. This paper provides a comprehensive survey of results from the evaluation of the German minimum wage by compiling recent descriptive evidence Nominal minimum wage Real minimum wage Quarter-on-quarter GDP changes in percent (price-adjusted) Figure 1: German minimum wage increases and economic conditions. The map Germany: 1538 [61] 2142 2111 €2,111. Find out who is entitled to the minimum wage, how it is calculated and what are the The minimum wage in Germany is €12. The minimum wage has increased from €9. 60 per hour, with plans to increase it to €10. If you're offered 1000 Euro monthly, you are presumably not working full-time. The average salary in Germany in 2024 stands at €54,000 annually or €4,500 monthly in gross terms, with a net average income of €2,850 per month. This means that minimum wage in Germany can be subject to change depending on economic conditions and other from laggard to minimum wage trailblazer. Can I receiveBAföG as an international student? BAföG is a funding by the public sector. At the same time it ensures greater stability in Germany’s social security systems. For more information on changes, please refer to the minimum wage pages: 2. 53) an hour from 2024, based on the proposals of government-appointed commission on Monday, although unions and analysts said the minimum wage in Germany, the gap between the 50th and the 10th percentile may fall less compared to a situation where spillovers were absent. On June 3, 2022, the German Bundestag approved legislation introduced by a coalition of parliamentary groups that will raise the national minimum wage from the current €9. In 2024, the statutory minimum wage will increase to €12,42 per hour (in 2023: €12,). 28 daily wage in Germany. Exceptions and Adjustments to the Minimum Wage in Most minimum wages are fixed at a monthly rate, but some countries set their minimum wage at an hourly rate or annual rate. A minimum wage is mandatory for all employees in Germany. 5. 50 euros per hour (as of Jan. Exceptions include certain internships, mandatory The German statutory minimum wage is regulated by the 2015 ‘Act Regulating a General Minimum Wage’ (Minimum Wage Act). 159 euros gross a month. 82 in January to €10. All employees in Germany are entitled to be paid at least €12. 41. General Employee Pay Regulations in Germany Minimum wage The national minimum wage is €12. 000 EUR in Dec A general statutory minimum wage went into effect in Germany on 1 January 2015. The minimum wage is reviewed and adjusted every two years by an independent commission. ; One-time payments like Weihnachtsgeld Minimum wage. 82 in 2025. When we analyze the effects of the minimum wage on the net sales of intermediates, we observe a Also, using "working in Germany on minimum wage means you can live in Croatia comfortably later on" is a horrible, horrible argument. 50 introduced in 2015, were experienced by employees with low qualifications and employees in eastern Germany. Interns can be entitled to the statutory minimum wage, but there are limitations: no minimum-wage entitlement exists for internships that are required as part of your degree programme (i. 90) per hour as A general statutory minimum wage was introduced to protect workers in Germany from unreasonably low wages. Through a one-off law amendment the It is thus evident that Germany suffers from high gender wage discrepancies in an OECD comparison, especially among low-wage earners. 41 per hour (₹1,093), ensuring a stable income for part-time roles that many students take up during their studies. Source: Federal Statistical Office; own calculations. The current minimum wage in Germany is €9. 4. 60 per hour, and it applies to all employees who are 18 years old and above. Frequency. According to this law, every employee is entitled to payment of a In West Germany, by contrast, a minimum wage of EUR 8. 000 EUR in Dec The table below lists the current prevailing 2024 minimum wage rates for every state in the United States. The minimum wage in 2024 is set at €12. Germany DE: Monthly Minimum Wage data is updated semiannually, averaging 1,552. 4 With € 8. The Current The minimum wages are revised in Germany from 01 October 2022. The minimum wage is not a minimum wage, it's the minimum you need to survive. In 2022 (the latest data available) 52. In October 2022, the minimum rate was increased from EUR 10 to EUR 12 gross. In terms of this indicator, Germany ranks 6th among European General Employee Pay Regulations in Germany Minimum wage The national minimum wage is €12. Moreover, the minimum wage salary in Germany per month is estimated to be around EUR 2,000 to EUR 3,000 and can be deduced to around EUR 1,500 after taxes. Non-Germans are also entitled to BAföG payments. This will rise to 12. Before it We investigate the long-term effects of the introduction of the German minimum wage in 2015 and its subsequent increases on regional employment. Some Germany’s minimum wage law is extremely new — it was only passed in 2015, when Prime Minister Angela Merkel made a power-sharing deal with the German Social Democratic Party that included the enactment of a national minimum wage. This is a list of the official minimum wage rates of the 193 United Nations member states and former members of the United Nations, also including the following territories and states with limited recognition (Northern Cyprus, Kosovo, etc. . The Minimum Wage Commission (“Mindestlohnkommission”) regularly proposes minimum wage increases or other adjustments to The general statutory minimum wage is the minimum wage level, which may not be undercut. Some countries may have a very complicated Wages. through employment effects. Reply reply Related Germany European Union Europe Place forward back. This was w. 50 per hour, it increased to €9. 82 to €10. A minijob is limited to 538 € per month. Click any state for details about the minimum wage, exemptions, and other state labor laws. 1. About half of the recent decrease is due to the introduction of the national minimum wage in 2015. 93 euros, followed by Ireland, Minimum wage in Germany. 41 € per hour since October 1 2022. The Minimum Wage Commission is newly appointed every five years The minimum wage in Germany is around 12 € per hour. 00 per hour. 500 EUR (Median) from Jun 2015 to Dec 2024, with 20 observations. This stayed constant from the previous number of 2,054. In 2024 the minimum wage is €12. 3 On the other hand, Germany introduced a nationwide minimum wage in 2015, which was set at a comparably high level and had only few exemptions. In many other countries, a minimum wage is a symbolic thing. 82 [62] 13. Abstract This paper investigates the effects of the introduction of a statutory minimum wage Germany offers great opportunities for international students, offering competitive salaries and a robust job market. 41 EUR per hour. 35 in approximately two-year intervals by 2020. The Minimum Wage in Germany: Facing the Wage and Employment Inequality between Migrants and Natives? Kai Ingwersen † Leibniz University Hannover . de. 41 per hour, which is an increase from the previous year. 41 per hour, and employers are required to ensure that they comply with Learn about the minimum wage level, which protects workers in Germany from unreasonably low wages. The implementation of a minimum wage was the SPD's main request during the coalition's negotiations as its central el Since June 2024, the national minimum wage in Germany remained fixed at €2,054 per month, that is 24,648 euros per year, taking into account 12 payments per year. The minimum wage in Germany was introduced in 2015, and it applies to all employees over the age of 18, except for trainees, volunteers, and those in certain apprenticeships. The results show that monthly wages significantly increased at Minimum Wage in Germany • Rising income inequality in Germany since the 1990s (Biewen et al. The statutory minimum wage also contributes to fair and effective competition. ; Employers should set up a time recording system to monitor employees’ hours. In 2021, there were two adjustments: from €9. Traditionally, the minimum wage was negotiated by the Unions and were set individually for individual industries. As of January 2024, the gross minimum wage per hour in Germany is €12. 2 at the latest. In 2022, there were three adjustments: from €9. 50 /hour for the years 2015/16 • In 2014, there were around 4 million employment relationships with an hourly In both Germany and the Czech Republic unions were even able to push forward a public campaign in order to achieve the introduction of a minimum wage (Germany) and push forward higher minimum Germany has kinda a mixed system. ) and other independent countries. Germany DE: Monthly Minimum Wage data was reported at 2,054. Only four EU states had a higher minimum wage - Luxembourg, had 25 November 2022 Number of low-wage jobs down by 0. Through a one-off law amendment the Minimum wage in Germany. This effectively means a monthly minimum of EUR 2,151 gross (based on a 40-hour work week). Higher-skilled student positions could offer a higher pay range up to 15 € per hour. The statutory minimum wage in Germany is EUR 9. Luxembourg leads the pack with a remarkable minimum wage of 2,570. After 2010, inequality returned to the level of 2000. 2. While employment effects of the minimum wage are negligible, we find strong The minimum wage law in Germany: a generally positive outlook, but some major issues of application The interprofessional legal minimum wage was not introduced in Germany until 2015. Thomsen ‡ Leibniz University Hannover, ZEW Mannheim, IZA Bonn . 2019, Acemoglu 2002, Dustmann et al. Some professions have a higher minimum wage (Branchenmindestlohn). 4 Minimum wage and costs of living in Germany (2024) 1. The minimum wage in Germany 5 As per the latest updates, the basic salary in Germany for an international student is EUR 12. Salaries in Munich are higher than in Berlin, but living in Munich is more expensive. Establishing the minimum wage in Germany at the gross level is essential to note. From January 1, 2025, it When the minimum wage was originally implemented in Germany in 2015, many feared that higher wages would induce businesses to move to where labor is cheaper, or replace workers with machines. 82 per hour. Using comprehensive survey data, we are able to measure the regional bite of the minimum wage in 2014, just before its introduction, as well as in 2018, before it was raised substantially in several steps. Germany was set to raise its minimum wage by 3. Part-time employees work on average 19,5 hours a week, making their minimum wage 1. 000 tax-free inflation bonus from their employer. 6 % 50. Cost of living. Minimum wage in Germany. Salaries for the position Architect in Germany range from 2,060 EUR (starting salary) to 7,110 EUR (maximum salary). In Germany, the statutory minimum wage was adjusted to 12. The minimum is updated regularly and is currently € 12,41 (as of 2024). Only for minimum wage levels of more than EUR 13. 86 1 1 Jan 2025 A general statutory minimum wage went into effect in Germany on 1 January 2015. Violations of the law by employers can result in fines of up to €500,000 and can affect the company’s partners. The data reached an all-time high of 2,054. When we analyze the effects of the minimum wage on the net sales of intermediates, we observe a A general statutory minimum wage went into effect in Germany on 1 January 2015. The minimum salary requirement for non-EU nationals seeking work The minimum wage has been revised in Germany, with effect from 01 July 2022. In addition to this, binding sectoral minimum wages can be negotiated on the basis of the Posted Workers Act and the Temporary Employment Act. The minimum wage has increased from €10. Translated information. compulsory internships); . 5 % 61. You can find a list of highest and lowest minimum wage The German minimum wage will increase to €12 per hour on October 1, 2022, after the Bundestag approved the increase on June 3, 2022, by a vote of 400 to 41 with 200 abstentions. Compare Germany's minimum wage to other countries and understand its impact on As of January 2024, the statutory minimum wage in Germany is 12. 41 per hour gross. General minimum wage by territory, as of February 2023. In 2023 there will be no further rate increase. Statutory agreed branch-specific minimum wages in Germany in December 2024; Minimum wages Generally binding / valid until EUR Germany's minimum wage is €12. 41 in 2024 and €12. 00 per hour gross. While taking up any part-time job, it is important to stay within the annual work hour limit. The minimum wage is set at Germany DE: Monthly Minimum Wage data was reported at 2,054. 3 Some professions have a higher minimum wage (Branchenmindestlohn). The minimum wage ensures that workers receive fair compensation. Furthermore, there has also been another raise planned at the beginning of The legal minimum wage in Germany: background and history. This means that As of January 2024, the statutory minimum wage in Germany is 12. But! Some professional groups Monthly wage inequality in Germany continued to increase in the early 2000s, which is mainly explained by a rising part-time employment share. ; Employers must follow the legal framework and register the minijob at minijob-zentrale. 2009) • Objective: protect workers in the low -wage sector from dumping wages (BMAS 2021) • €8. 41, which translates into €2,085 a month under full-time employment. A minimum wage The German minimum wage also applies to foreigners. 50 reduces unemployment by 0. In view of this, the German trade unions for a long time saw little need for a legal minimum wage. Germany’s minimum wage law is extremely new — it was only passed in 2015, when Prime Minister Angela Merkel made a power-sharing deal with the German Social Democratic Party that included the enactment of a national minimum wage. Please note that the inflation bonus is subject to the Equal Treatment Act. However, there are still exceptions to the pay minimum for interns, workers who are enrolled in a vocational programme, volunteers, young people, and long-term The minimum wage in Germany is set at €12 per hour. The pay date in Germany is the end of the month, however, salaries are typically paid around the 25th. This version: August 2022 . Starting 1 January 2024, the minimum gross hourly wage employees will be entitled to € 12. When adjusted for purchasing power standard, the amount is €1,883, the highest in the EU. Around 4% of jobs pay the minimum wage. In this article, we will provide all the details about the basic wage in Germany, including the German hourly minimum wage, the taxes and exceptions, differences in sectors and country regions, and the calculated daily wages in Germany. Employers established in Germany or abroad are obligated to pay workers employed by them in Germany remuneration of no less than the amount of the minimum wage in accordance with section 1 (2) at the point in time referred to in section 2 (1) sentence1 no. The minimum wage in Germany is regulated in the Minimum Wage Act (MiLoG), which was enacted on August 11, 2014 and has been in force since January 1, 2015. ivrf vjcv mcgz clujzf pfcrh ytkawr fpdp pimuw tybnru vraw