Payroll
Jul 10, 2026•6 min read
Germany minimum wage 2027
[Germany] Minimum Wage Confirmed to Rise to €14.60 per Hour from January 2027 Home / News / Germany / Minimum Wage 2027 Germany · Minimum Wage · Payro...
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Editorial Team
Global HR Experts
Economic Overview, Berlin Startup Capital & German Engineering
Germany is Europe's economic locomotive, combining industrial leadership with elite software engineering, cybersecurity, and deeptech innovation.
Key Economic Sectors
- Software & FinTech: Enterprise software (SAP), cloud architecture, AI, and fintech in Berlin and Frankfurt.
- Automotive & CleanTech Mobility: Electric mobility, autonomous driving R&D, and battery systems in Munich and Stuttgart.
- Advanced Industrial Machinery (Mittelstand): Precision robotics, optical systems (Zeiss), and medical engineering.
Employment Contracts, Nachweisgesetz & AÜG Licensing
Governed by the Civil Code (BGB), the Proof of Terms of Employment Act (*Nachweisgesetz*), and the AÜG.
- Mandatory Written Terms: Contracts must be executed in writing (wet-ink signature strictly required under *Nachweisgesetz*) detailing salary, duties, and benefits.
- Probation Period (*Probezeit*): Maximum statutory probation is 6 months. During probation, either party may terminate with 2 weeks' notice without justification.
Working Hours, Overtime & Working Time Act (ArbZG)
- Standard Hours: 38 to 40 hours per week (8 hours/day over 5 days). Maximum daily limit is 10 hours under *Arbeitszeitgesetz (ArbZG)*.
- Mandatory Time Tracking: Following Federal Labour Court (BAG) rulings, employers must systematically record daily working hours.
Annual Leave (BUrlG), Public Holidays & Parental Leave
- Annual Paid Vacation: Statutory minimum of 20 working days (for 5-day week), with 28 to 30 working days being standard commercial market practice.
- Public Holidays: 9 to 13 public holidays (varies by Federal State / *Bundesland*).
- Maternity Protection (*Mutterschutz*): 14 weeks (6 weeks prenatal + 8 weeks postnatal) fully paid via statutory health insurance. Strict dismissal prohibition applies.
- Parental Leave (*Elternzeit*): Up to 3 years per child with state parental allowance (*Elterngeld*).
Termination, KSchG Dismissal Protection & Severance
Dismissal Protection Act (*Kündigungsschutzgesetz – KSchG*)
- Protection Threshold: Applies to companies with > 10 employees after 6 months of service. Termination requires socially justified grounds (conduct, personal, or operational).
- Notice Periods: Scales from 4 weeks up to 7 months based on length of service.
- Standard Severance Formula: Commonly negotiated as 0.5 months' gross salary per year of service (*Abfindung*).
Why Use an AÜG-Licensed Employer of Record (EOR) in Germany
- Mandatory AÜG Licensing: Compliant EOR structures operate with a certified *Arbeitnehmerüberlassung* license from the Federal Employment Agency.
- Avoid 6–10 Week GmbH Setup: Onboard software developers in Berlin or Munich in days.
- EU Blue Card (*Blaue Karte EU*) Sponsorship: EOR sponsors work authorizations for qualified international tech specialists.
Hiring in Germany? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:
