The limit of the minimum hourly wage was raised on January 1, 2024, and the next increase will follow at the beginning of 2025. When it was introduced in 2015, the legal minimum hourly wage was 8.50 euros per hour. Since then, the lower limit has been raised several times. Last time on January 1, 2024 at 12.41 euros per hour. In January 2025, the minimum hourly wage will rise to 12.82 euros.
The minimum hourly wage instrument was introduced in Germany to prevent immoral remuneration and dirty competition, reports Večernji list.
Since January 2018, it has been applied in all economic sectors without exception. This means that collective agreements are no longer allowed in certain industries that are below the applicable minimum hourly wage.
As of January 2020, a minimum training fee is also required in Germany. From the start of 2024 this is currently €649 per month for trainees in their first year of training and is adjusted annually.
LEGAL MINIMUM HOURLY WAGE
The minimum hourly wage regulates the absolute minimum hourly wage in Germany. However, in some industries and companies, employers are obliged to pay even higher hourly wages.
For example, if they are tied to the branch’s minimum hourly wage, which is contracted on the basis of the Law on Collective Agreement or the Law on the Assignment of Workers. As a rule, they are negotiated by trade unions and individual employers or employers’ associations, according to German media.
This minimum wage applies in Germany in 2024 and 2025
from January 1, 2024 – 12.41 euros per hour
from January 1, 2025 – 12.82 euros per hour
An increase in the minimum wage also affects the small business cap.
With the legal increase in the minimum hourly wage in 2022, the limit for small jobs was raised from 450 euros to 520 euros. The legislator stipulated that the income limit will be linked to the minimum hourly wage in the future.
Specifically, this means that with each increase in the minimum wage, the limit of mini-jobs is also adjusted.
In 2024, the limit for mini jobs increased to 538 euros per month, while in 2025, the limit for mini jobs will increase to 556 euros.
