German Minimum Wage and Mini-Job Threshold to Increase in 2024

Germany's statutory minimum wage is set to increase on January 1, 2024, rising from EUR 12 to EUR 12.41 gross per hour. A further increase to EUR 12.82 gross per hour is planned for January 1, 2025, according to the German Federal Ministry of Labor and Social Affairs.

The changes will also affect the income threshold for "mini-jobs," employment arrangements where earnings are capped. This monthly threshold will rise from EUR 520 to EUR 538 starting in January 2024, and will reach EUR 556 in January 2025. Since October 2022, the mini-job income limit has been dynamically linked to the minimum wage, meaning the maximum hours an individual can work in a mini-job will not change despite the hourly wage increase.

Additionally, the lower earnings threshold for "midi-jobs," a category of employment with earnings above the mini-job limit but below regular full-time employment, will be adjusted. This threshold will move from EUR 520.01 to EUR 538.01 per month, while the upper limit for midi-jobs remains at EUR 2,000 per month.

The adjustments were formally adopted by the German Federal Government based on recommendations from the Minimum Wage Commission. BDO AG, the German auditing and advisory firm that reported these changes, stated that these adjustments are significant for payroll and employment contracts within the country. The firm offers advisory services to businesses navigating these regulatory updates.