Unlike most European countries and the United States,
Germany's workforce has long operated without a
nationwide/general minimum wage. But that will change January 1,
2015, when the country's first national minimum wage
legislation goes into effect. Germany's Minimum Wage Act, or
Mindestlohngesetz (MiLoG), will require a minimum wage of
€8.50 per hour.
The Minimum Wage Act applies to employees who perform work in
Germany, regardless of whether the employer is based inside or
outside the country. The Act creates strict regulations on an
employer's liability – including for contract employees.
In particular, employers are liable for the minimum-wage
obligations of their contractors, as well as the contractors'
subcontractors and payroll providers. The Act provides certain
exceptions for minors and trainees, employees in fields such as
agriculture and newspaper delivery, and employees covered by
collective bargaining agreements.
