ARTICLE · 11 APRIL 2022

German Employment Law: A Look At Important Changes For 2022

Ogletree, Deakins, Nash, Smoak & Stewart

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As usual, there are some important changes in German employment law that went into effect at the beginning of the new year.

GermanyEmployment and HR

Eva von Muellern

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As usual, there are some important changes in German employment law that went into effect at the beginning of the new year. Below are eight of the most important new developments about which employers may want to be aware.

Statutory minimum wage

The statutory minimum wage was raised again as of January 1, 2022. The minimum gross hourly wage is now ?9.82. The new German coalition government's plan to increase the minimum hourly wage to ?12 will also take effect soon, with regulations scheduled to be implemented sometime this year.

Noncash benefits

The exemption limit for noncash benefits that employers can pay their employees tax-free has increased from ?44 to ?50 per month beginning January 1, 2022. Another new aspect is that a cash card or voucher must meet the stricter requirements of Section 2(1) No. 10 of the Payment Services Oversight Act (Zahlungsdiensteaufsichtsgesetz or ZAG) beginning January 1, 2022, in order to remain tax-free. This means

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