Minimum Wage Law (MiLoG)

For many years, Germany was one of only a few European countries that did not have a minimum wage law or comparable regulation. Since January 1, 2015, the country has had comprehensive minimum wage legislation in force. The law defining minimum wage and its requirements is called the Minimum Wage Act or MiLoG (Mindestlohngesetz).

What is the minimum wage under MiLoG?

The MiLoG obliges employers to pay a minimum statutory wage to every employee working in Germany. When the MiLoG was introduced in 2015, the government set the amount at € 8.50/ hour. In 2017, it raised up to € 8.84/hour.

For a full-time job (40 hour/week), the monthly gross salary is € 1,538.16:

  • 4.35 weeks/month x 40 hours/week x € 8.84 = € 1,538.16

Which allowances or supplements are considered part of the salary under MiLoG?

As a general rule, the minimum wage must consist of monetary payments. Compensation or benefits provided by the employer for the work Performance in a form other than money are not taken into consideration.

However, not all payouts to the employee are accepted as wage components from a MiLoG perspective. The more components the salary consists of, the more important it is to ensure the minimum wage is reached.

The deputation (or secondment) of a foreign employee to Germany often includes several allowances or supplements paid by the employer. The wage package often consists of the following:

  • Base salary (home country)
  • Additional salary to meet local standards (for the period of deputation)
  • Daily living allowance
  • Food allowance
  • Accommodation allowance
  • School tuition
  • Relocation expenses

Find more information on the relevant authority websites, such as the German Custom authorities.

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