- Country Information
- Germany
What is the minimum wage in Germany?
Modified on: Thu, 8 Jan, 2026 at 6:06 PM
In Germany, employees are protected by a statutory minimum wage. In addition, when working through an Employer of Record (EOR) operating under an AÜG (Arbeitnehmerüberlassungsgesetz) license, the applicable minimum pay is higher than the general legal minimum. This is the case for RemotePeople and all EOR providers in Germany.
Statutory Minimum Wage in 2026
As of 1 January 2026, Germany’s nationwide statutory minimum wage (Mindestlohn) increases to €13.90 per hour, up from €12.82 in 2025. This rate applies to most employees and sets the absolute legal floor for hourly pay. It is established under the Minimum Wage Act (MiLoG) and applies unless another legally binding rule requires a higher wage.
Planned Future Increase
A further increase to €14.60 per hour is scheduled for 1 January 2027, following recommendations by the independent Minimum Wage Commission and approval by the federal government.
Why Pay Is Higher Under an AÜG License
When employment is structured under an AÜG license, as is the case with RemotePeople and all EOR providers in Germany, additional legal requirements apply beyond the statutory minimum wage.
Under AÜG, employees are generally covered by collective bargaining agreements applicable to temporary agency work (Zeitarbeit). These agreements set sector-specific minimum wages that are higher than the statutory minimum wage. Employers must always apply the most favorable rule for the employee, meaning the higher collectively agreed wage takes precedence over the general minimum wage.
In addition, AÜG enforces the principle of equal pay, which requires that leased employees receive pay comparable to directly employed workers at the client company after certain qualifying periods, unless a valid collective agreement applies. This further contributes to wages exceeding the statutory minimum.
What This Means for Employees Working via RemotePeople
Employees engaged through RemotePeople under an AÜG structure can expect:
1. Pay that meets or exceeds the statutory minimum wage of €13.90 per hour in 2026
2. Application of higher minimum wages defined by relevant collective agreements for agency work
3. Protection under German equal-pay and employee-leasing regulations
How Minimum Wage Compliance Is Calculated
Minimum wage compliance in Germany is assessed based on hours agreed upon in the employment agreement and actually worked, not just on the monthly salary amount. To confirm compliance, the employee’s gross monthly salary is divided by the total number of compensable working hours.
If an employment contract legally includes a certain amount of overtime that is compensated through the fixed salary, those hours must be included in the calculation. This means the salary is divided by the theoretical total working time, which typically consists of:
1. The standard 40 hours per week, plus
2. An additional 20–30 hours of overtime per month compensated with the fixed monthly salary, if contractually agreed
The resulting hourly rate must still meet or exceed the applicable minimum wage (statutory or collectively agreed under AÜG). Employers cannot exclude compensated overtime hours when calculating minimum wage compliance.
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