Work conditions in Germany

The Active Population in Figures

Working Conditions

Legal Weekly Duration

Maximum of 48 hours a week

Retirement Age

67 years old

Working Contracts

Employment contracts are usually open-ended, with a trial period that may not exceed six months.

Employment contracts may also be fixed term, which can be renewed a maximum of three times and may last for a maximum duration of two years.

Labour Laws

Consult Doing Business Website, to obtain a summary of the labour regulations that apply to local entreprises

Cost of Labour

Minimum Wage

Starting from January 2022, the statutory minimum wage is set at €9.82 per hour. Starting from July 2022, the statutory minimum wage will be set at €10.45 per hour. The federal minimum wage applies to almost all employees, including foreign workers, part-time workers, interns (under certain conditions) and people working through a probationary period.

Average Wage

Average annual wage: $ 53,745  (source: OECD, 2020 - latest available data).

Social Contributions

Social Security Contributions Paid By Employers: In total, the employer's share of social insurance contributions amounts approximately 20.5% of employee's gross wages:

•    Pension (9.3%),
•    Health (7.3%),
•    Unemployment (1.2%),
•    Nursing care (1.525%),
•    Accident insurance (varies depending on the industrial sector and accident risk),
•    Insolvency (0.12%).
Social Security Contributions Paid By Employees: Social security contributions are generally shared equally by employer and employee. Employees pay approximately 19.3% of gross wages:

•    Pension (9.3%),
•    Health (7.3%),
•    Unemployment (1.2%),
•    Nursing care (1.525%).

Social Partners

Employer Associations

SIHK - South Westphalian Chamber of Commerce
BDA DIE ARBEITGEBER - Confederation of German Employers‘ Associations
BDI - Federation of German Industries

Social Dialogue and Involvement of Social Partners

Unions are strong throughout Germany, but the eastern side of Germany is more union-oriented than the west. The overwhelming majority of union members are part of eight unions, each grouped by industry or service sector. They are each affiliates of the German Trade Union Federation (DGB), which counted 6.3 million members in 2009.

At the company level, works councils represent the interests of workers vis-à-vis their employers. German labour unions are generally constructive in their cooperation with employers, as securing jobs is one of the unions' core objectives.

Since 2012, Germany experienced a considerable rise in the number of strike days, as labour unions sought greater benefits from Germany’s strong economic recovery.

Labour Unions

DGB
Verdi
IG Metall

Unionisation Rate

21%

Labour Regulation Bodies

Ministry of Agriculture
Deutscher Bauernverband
BOLW