German overtime regulations rest on two pillars: the Arbeitszeitgesetz (ArbZG) sets a standard working day of 8 hours (extendable to 10 with compensation), while collective agreements and employment contracts determine how overtime is compensated — through pay, time off in lieu (Zeitausgleich), or a combination of both. Germany does not mandate a specific overtime premium (like time-and-a-half) under statute — the rate depends on the applicable collective agreement, employment contract, or established company practice.
This guide covers the statutory working time limits, overtime compensation rules, the employer’s recording obligations, and the interaction between the ArbZG and collective agreements.
Key takeaways
- The standard working day is 8 hours under §3 ArbZG, extendable to 10 hours if averaged to 8 hours over 6 calendar months or 24 weeks.
- Overtime compensation is governed by collective agreements, not statute — there is no statutory overtime premium.
- The 48-hour weekly limit is the reference point: 8 hours × 6 days = 48 hours. Employers can reduce the daily limit to compensate for longer days.
- Working time recording (Arbeitszeiterfassung) is mandatory following the Federal Labour Court’s 2022 decision and the EU Working Time Directive.
- Employers must not exceed the limits even if the employee agrees — the ArbZG protects employee health and cannot be waived by contract.
Statutory working time limits
§3 ArbZG sets the core limits:
| Limit | Detail |
|---|---|
| Standard working day | 8 hours |
| Maximum working day | 10 hours (if averaged to 8 hours over 6 months / 24 weeks) |
| Standard working week | 48 hours (8 hours × 6 days) |
| Rest period between working days | 11 hours (§5 ArbZG) |
| Night work | Maximum 8 hours per shift (§6 ArbZG) |
The 10-hour maximum is not a permanent extension — it requires that the extra hours are compensated by shorter hours within the reference period. An employer who regularly schedules 10-hour days without compensating shorter hours breaches the ArbZG.
Overtime compensation
The Arbeitszeitgesetz does not mandate a specific overtime premium. The compensation depends on:
- Collective agreement (Tarifvertrag) — most collective agreements specify an overtime premium, typically 25–50% for hours exceeding the standard working day, and higher rates for night work, Sunday, or public holiday overtime
- Employment contract (Arbeitsvertrag) — the contract may specify a premium or time off in lieu (Zeitausgleich)
- Company practice (Betriebliche Übung) — consistent payment of overtime premiums can create a binding obligation
- Statutory default — if none of the above applies, there is no statutory right to an overtime premium
| Source | Typical overtime rate |
|---|---|
| IG Metall | 25% for first 2 hours, 50% for additional hours |
| TVöD / TV-L | 25% for hours exceeding 8/day or 40/week |
| Chemical industry | 25–50% depending on the time of day |
| Retail (Einzelhandel) | Varies; often time off in lieu |
| No collective agreement | No statutory premium; depends on contract |
Time off in lieu (Zeitausgleich)
Many German employers compensate overtime with time off in lieu (Zeitausgleich) rather than a pay premium. This is permitted under most collective agreements, subject to conditions:
- The time off must be granted within a reasonable period (typically 3–6 months, depending on the agreement)
- The employee must actually take the time off — the employer cannot indefinitely accumulate TOIL
- The employee has the right to choose between TOIL and pay premium if the collective agreement provides both options
The Federal Labour Court (Bundesarbeitsgericht) has held that TOIL must be granted within the same reference period as the overtime was worked. An employer who accumulates TOIL over years without granting it faces a claim for payment.
Working time recording
Following the Federal Labour Court’s landmark decision in September 2022 and the EU Working Time Directive (2003/88/EC), employers in Germany must record working time for all employees:
| Requirement | Detail |
|---|---|
| What to record | Start and end of each working day |
| Method | Electronic or equivalent (paper-based is no longer sufficient) |
| Scope | All employees, including part-time and marginal employment |
| Retention | Must be retained for the period specified by the applicable collective agreement or statute |
| Enforcement | The employer must ensure compliance; the employee is not responsible for self-recording |
The working time record is the only reliable evidence of hours worked. In a dispute, the employer bears the burden of proof for the hours worked — the employee’s claim of additional hours is accepted if the employer cannot produce a record.
Special overtime rules
Night work
§6 ArbZG restricts night work to 8 hours per shift. The night worker is entitled to a medical examination at regular intervals and additional compensation (Nachtzuschlag) under most collective agreements.
Sunday and public holiday work
§9 ArbZG prohibits Sunday and public holiday work except in specific industries (hospitality, healthcare, emergency services). Where Sunday or public holiday work is permitted, the employee is entitled to additional compensation under §11 ArbZG.
Overtime ban
An employer can impose an overtime ban (Überstundenverbot) if the total working time (regular + overtime) exceeds the 10-hour daily limit or the 48-hour weekly limit. The ban is a protective measure, not a disciplinary action.
Employer obligations
Six core duties apply to German overtime management:
- Record working time — start and end of each working day for all employees
- Enforce the 8/10-hour limits — ensure daily working time does not exceed 10 hours and averages 8 hours over the reference period
- Provide 11-hour rest periods — between the end of one working day and the start of the next
- Compensate overtime — apply the correct rate under the applicable collective agreement or employment contract
- Grant TOIL — where the collective agreement provides time off in lieu, grant it within the reference period
- Report overtime to the works council — the works council has information rights under §80 BetrVG
Common pitfalls
1. Assuming there is a statutory overtime premium
There is no statutory overtime premium under German law. The premium depends on the collective agreement or employment contract. An employer who does not pay an overtime premium is not in breach unless a collective agreement or contract requires it.
2. Not recording working time
The 2022 Federal Labour Court decision and the EU Working Time Directive require electronic time recording. Employers who do not record working time face an evidential disadvantage in any dispute and potential enforcement action.
3. Exceeding the 10-hour limit without compensation
The 10-hour maximum requires that extra hours are compensated by shorter hours within the reference period. Regularly exceeding 10 hours without compensation breaches §3 ArbZG.
4. Accumulating TOIL indefinitely
TOIL must be granted within a reasonable period. Indefinite accumulation can result in a claim for payment of the overtime at the applicable rate.
5. Ignoring night work rules
Night workers are entitled to a medical examination, additional compensation, and restrictions on hours. Failure to comply with §6 ArbZG is a separate breach from the general working time limits.
For more German context, see our guide to German annual leave entitlements and German short-time work (Kurzarbeit).
A leave management system that records working time electronically, tracks the 8/10-hour limits, and manages TOIL balances keeps your German overtime compliance on autopilot.
Frequently asked questions
What is the maximum overtime allowed in Germany?
The maximum working day is 10 hours under §3 ArbZG, provided the extra hours are compensated by shorter hours to average 8 hours over 6 months. The standard working week is 48 hours (8 hours × 6 days).
Is there a statutory overtime premium in Germany?
No. The Arbeitszeitgesetz does not mandate a specific overtime premium. The rate depends on the applicable collective agreement, employment contract, or established company practice. Common rates range from 25–50%.
Can an employee refuse to work overtime?
Employees are generally obligated to work reasonable overtime if the employment contract or collective agreement requires it. However, the employer cannot force overtime that breaches the 10-hour daily limit or the 48-hour weekly limit.
Do employers have to record working time in Germany?
Yes. Following the Federal Labour Court’s 2022 decision and the EU Working Time Directive, employers must record the start and end of each working day for all employees using an electronic or equivalent system.
Can overtime be compensated with time off in lieu?
Yes, if the collective agreement or employment contract provides for it. TOIL must be granted within a reasonable period — typically the same reference period as the overtime was worked.
Sources
- Arbeitszeitgesetz (ArbZG)
- Bundesarbeitsgericht — Arbeitszeiterfassung (2022)
- EU Working Time Directive 2003/88/EC
- Bundesministerium für Arbeit und Soziales
Last updated: 26 July 2026. This article is general guidance, not legal advice. Overtime rules and collective agreement terms change — confirm current terms with the applicable Tarifvertrag.