The German minimum wage is the statutory floor on hourly pay established by the Mindestlohngesetz (MiLoG — Minimum Wage Act). From 1 January 2026, the minimum wage is €12.82 per hour, and it is set to rise to €13.00 from 1 January 2027 under the Minimum Wage Commission’s recommendations. The minimum wage applies to all employees in Germany regardless of age, nationality, or type of employment. Employers must record the start and end of working hours for all employees subject to the minimum wage and retain those records for at least 2 years. The Finanzkontrolle Schwarzarbeit (FKS — Financial Control of Undeclared Work) within the Customs authority (Zoll) enforces the minimum wage and can impose fines of up to €500,000.
This guide covers the current rates, who is covered, recording obligations, and enforcement.
Key takeaways
- From 1 January 2026, the German minimum wage is €12.82 per hour — under the Mindestlohngesetz (MiLoG).
- From 1 January 2027, it is set to rise to €13.00 per hour based on the Minimum Wage Commission’s recommendation.
- The minimum wage applies to all employees in Germany — there is no age threshold or qualifying period.
- Employers must record working hours for all minimum-wage employees — start and end times, retained for at least 2 years.
- Enforcement is by the Finanzkontrolle Schwarzarbeit (FKS) within the Customs authority, with fines of up to €500,000 for non-compliance.
- Collective agreements may set a higher minimum wage for specific sectors — the statutory minimum is the floor.
The rates
| Period | Minimum wage per hour |
|---|---|
| 1 January 2025 – 31 December 2025 | €12.41 |
| 1 January 2026 – 31 December 2026 | €12.82 |
| From 1 January 2027 (recommended) | €13.00 |
The Minimum Wage Commission (Mindestlohnkommission) reviews the rate every two years and recommends adjustments based on collective bargaining agreements, inflation, and wage developments.
Who is covered
The minimum wage applies to all employees in Germany — Section 1(1) MiLoG. This includes:
- Full-time and part-time employees
- Temporary and agency workers
- Mini-jobbers (up to €556/month) — they are entitled to the minimum wage for hours worked
- Trainees and apprentices — but dual-system apprentices are exempt
- Seasonal workers
- Foreign employees working in Germany
Who is not covered
- Self-employed individuals (genuinely self-employed)
- Dual-system apprentices (Auszubildende dualer Berufsbildung)
- Employees under 18 without vocational training
- Long-term unemployed (for the first 6 months of employment)
- Volunteers (within the meaning of the Freiwilligengesetz)
- Participants in a European Voluntary Service programme
How to calculate pay
The minimum wage is an hourly rate. Total pay in the pay period divided by total hours worked gives the effective hourly rate. The employer must ensure this is at least €12.82 per hour.
What counts as pay
| Included | Excluded |
|---|---|
| Basic pay | Expenses |
| Commissions and bonuses (paid in the reference period) | Benefits-in-kind |
| Shift premiums | Tips (unless paid through payroll) |
| Piece-rate pay (averaged over the reference period) | Accommodation offset (calculated separately) |
Accommodation offset
Where the employer provides accommodation, a daily offset is applied. From 2026, the offset is €1.40 per day (or a pro rata amount for part of a day). The employer deducts this from the total pay and then divides by hours worked to check the effective hourly rate.
Recording obligations
Under Section 17 MiLoG, employers must:
- Record the start and end of working time for every employee subject to the minimum wage.
- Retain the records for at least 2 years.
- Make the records available to the FKS or the Mindestlohnkommission on request.
The records must be kept in German and must be legible. Electronic time-recording systems are acceptable provided the data can be retrieved and printed.
Exceptions
The recording obligation does not apply to:
- Employees covered by a collective agreement that contains equivalent recording provisions.
- Employees in senior executive positions who can determine their own working hours.
In practice, most employers record working hours for all employees — not just those subject to the minimum wage — to avoid disputes about which employees are covered.
Collective agreements
The statutory minimum wage is the floor. Collective agreements (Tarifverträge) may set a higher minimum wage for specific sectors or occupations. Where a collective agreement applies, the employer must pay at least the rate set by the agreement — even if it is higher than the statutory minimum.
Examples of sector-specific minimum wages:
| Sector | Minimum wage (2026) |
|---|---|
| Construction | Higher than statutory |
| Cleaning | Higher than statutory |
| Agriculture | Higher than statutory |
| Care work | Higher than statutory |
| Temporary work | Higher than statutory |
The employer should check whether a collective agreement applies to their sector and, if so, pay the higher rate.
Enforcement
The Finanzkontrolle Schwarzarbeit (FKS) within the Generalzolldirektion (General Customs Directorate) enforces the minimum wage. The FKS can:
- Inspect workplace records — including time-recording data, payroll records, and employment contracts.
- Impose fines — up to €500,000 for non-compliance with the recording obligation or for paying below the minimum wage.
- Publish the names of employers who have been fined — the naming of employers (namentliche Bekanntgabe) is a significant reputational risk.
- Require back-payment — the employer must pay the difference between the amount paid and the minimum wage, plus a surcharge.
The FKS conducts random inspections and also responds to complaints. Industries with high rates of temporary and agency work, construction, cleaning, and hospitality are particularly targeted.
Common pitfalls
1. Not recording working hours
The recording obligation is separate from the payment obligation. An employer who pays the minimum wage but does not record hours is still in breach of Section 17 MiLoG.
2. Including benefits-in-kind at face value
Benefits-in-kind (meals, accommodation) should be valued at cost, not at market value. Overvaluing benefits-in-kind reduces the effective hourly rate.
3. Ignoring the accommodation offset
The accommodation offset is a deduction, not a credit. The employer deducts it from total pay — not adds it to the hourly rate.
4. Treating mini-jobbers differently
Mini-jobbers are entitled to the minimum wage for every hour worked. The fact that the monthly earnings cap is €556 does not change the hourly entitlement.
Putting it into practice
Five steps to maintain minimum wage compliance:
- Audit pay rates annually — the rate changes on 1 January each year; check that all affected employees are on at least the new rate.
- Record start and end times — use a time-recording system that captures this for every employee, not just minimum-wage workers.
- Check collective agreements — verify whether a sector-specific agreement applies and pay the higher rate if it does.
- Review accommodation offsets — if you provide accommodation, apply the correct offset and check the effective hourly rate.
- Retain records for at least 2 years — the FKS can inspect records going back to the beginning of the employment.
Recording working hours, tracking minimum wage compliance across different pay rates and collective agreements, and retaining records for the required period requires a system that captures hours and pay data accurately.
Sources
- Mindestlohngesetz (MiLoG) (primary source)
- Mindestlohnkommission — Recommendations (rate setting)
- Generalzolldirektion — Finanzkontrolle Schwarzarbeit (enforcement)
- Bundesministerium für Arbeit und Soziales (labour law)
This article is general information, not legal advice. German minimum wage rates change annually — confirm the current rate with the Mindestlohnkommission or the FKS.