National minimum wage in detail

With effect from 1 January 2019, the German Parliament and the Federal Council have set the national hourly minimum wage for all industries and regions at EUR 9.19. It will be increased to EUR 9.35 per hour with effect from 1 January 2020. There is no fixed statutory monthly minimum wage. The gross monthly wage must not be lower than the product of the hours worked with the minimum wage rate per hour and may vary from month to month. Assuming a month with 22 working days the monthly gross wage must not be lower than EUR 1617.44 (based on 40 working hours/week). As of 1 January 2020 the monthly gross salary would have to be at least EUR 1645.60 (based on 40 working hours/week and 22 working days/month).

There are some exceptions from minimum wage, for example, the long-term unemployed or employees under age 18 without completed vocational training. The wage is based on a decision of the Minimum Wage Commission, which adjusts the rate every two years. Since 1 January 2018, the statutory minimum wage has applied in all sectors without exception. In addition to the statutory minimum wage, there are several industry minimum wages

based on collective agreements for specific industry sectors, which exceed the hourly rate of EUR 9.19. Nevertheless, in our view the hourly rate of EUR 9.19 is a representative figure, as the higher figures are the exception and in most sectors the minimum wage rate of EUR 9.19 applies.

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Author: Kliemt.HR Lawyers

Date: March 2019


Note: For specific advice on any particular issue, please consult the relevant firm. The law is stated as at March 2019.

 

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