Mindestlohn, Urlaubsgeld und Lohnfortzahlung im Krankheitsfall

When you start working in Germany, three core employment protections form the foundation of your worker rights: a legally mandated minimum wage, paid vacation days, and continued payment during illness. Understanding these benefits is essential for new employees, expats, and families settling in Germany, as they differ significantly from many other countries. This guide explains how each of these protections works in practice and what you need to know to protect yourself.

Gesetzlicher Mindestlohn: The Legal Minimum Wage

Germany's statutory minimum wage (gesetzlicher Mindestlohn) is the lowest hourly rate that any employer must pay you, regardless of your industry or job level. As of January 1, 2026, the minimum wage is 13.90 euros per hour (brutto — before taxes). This represents a significant increase from 12.82 euros in 2025, and the rate is scheduled to rise further to 14.60 euros in 2027. Germany first introduced a nationwide minimum wage in 2015 at 8.50 euros per hour, and the rate is reviewed and adjusted every two years by the Minimum Wage Commission (Mindestlohnkommission) based on economic conditions and collective wage agreements.

Who Must Pay the Minimum Wage?

In general, all employers in Germany must comply with the minimum wage when hiring employees for regular work. However, certain groups are exempt: trainees under the Vocational Training Act (Berufsausbildungsgesetz), volunteers, individuals in voluntary service, participants in employment promotion programs, home workers under the Home Work Act, self-employed persons, youth under 18 without completed vocational training, and long-term unemployed persons during their first six months back in the labor market.

Industry-Specific Minimum Wages (Branchenmindestlöhne)

Many sectors in Germany have negotiated higher minimum wages through collective bargaining agreements (Tarifverträge). These sector-specific minimums can be significantly higher than the general minimum wage. For example, certain industries like construction, cleaning, postal services, agriculture, and others have their own mandated rates. If you work in a unionized or collectively bargained sector, your minimum wage will likely be higher than the legal floor. Always check your employment contract and any relevant collective agreement (Tarifvertrag) for your industry to see what wage floor applies to your role.

Gesetzlicher Mindesturlaub: Statutory Vacation Entitlement

Every employee in Germany is guaranteed a minimum amount of paid vacation each year, regardless of your position, industry, or tenure. This entitlement is protected by federal law (Bundesurlaubsgesetz — BUrlG, the Federal Vacation Act) and cannot be reduced by your employer or employment contract. The law guarantees at least 24 working days (Werktage) of vacation per year, calculated on a six-day working week. However, since most modern German workplaces operate on a five-day week, this translates to a minimum of 20 days of paid leave per calendar year.

How Vacation Days Are Calculated

The law uses the term 'working days' (Werktage) to mean Monday through Saturday — essentially, all days except Sundays and legal public holidays. For practical purposes, most German employers operate on a Monday-to-Friday schedule (five-day week), and the statutory 24 working days converts to exactly 20 calendar days of paid leave. If you work part-time or on a schedule other than the standard five days per week, your vacation is calculated proportionally. For example, if you work three days per week, you are entitled to 12 days of vacation per year (one-third of 24 working days times 6, or simply 4 × 3 days). The formula is simple: multiply the number of days you work per week by four.

Your vacation entitlement accrues gradually throughout the year. You normally must take your vacation within the calendar year it is earned. However, if vacation cannot be taken due to illness or urgent operational reasons, unused days may be carried over to the first three months of the following year. Once that deadline passes, any remaining vacation is typically forfeited, unless your employment contract or a collective agreement provides otherwise.

Vacation Pay (Urlaubsentgelt) vs. Holiday Bonus (Urlaubsgeld)

It is important to distinguish between two similar-sounding concepts. Vacation pay (Urlaubsentgelt) is the continuation of your regular salary while you are on vacation — this is mandatory by law. When you take your 20 or 24 days of vacation, you continue to receive your normal wage in full, as if you were working. This is a statutory right and costs you nothing extra. Holiday bonus (Urlaubsgeld), by contrast, is an optional additional payment that some employers or collective agreements provide as a lump sum before vacation season — for example, a one-time summer bonus to help cover travel or holiday expenses. Urlaubsgeld is not legally required at the federal level, but may be mandatory under a collective bargaining agreement (Tarifvertrag) in your industry or company. Currently, only about 44 percent of German employees receive vacation bonuses, with coverage concentrated in sectors covered by collective agreements, such as public administration, metal industries, and chemicals. Check your employment contract or ask your HR department whether your position qualifies for Urlaubsgeld.

Enhanced Vacation for Special Groups

The law provides additional vacation for certain groups of workers. Employees with severe disabilities (Schwerbehinderung) receive five extra working days of vacation per year. Young workers under 18 are entitled to enhanced minimums: 30 working days for those under 16, 27 working days for those under 17, and 25 working days for those under 18. Apprentices (Auszubildende) receive at least 24 working days regardless of age, though many apprenticeship contracts offer more generous schedules.

Lohnfortzahlung im Krankheitsfall: Paid Sick Leave

When you become ill and cannot work, German law guarantees that your employer must continue paying your full salary for a specified period. This protection is one of the most robust in Europe and applies regardless of how long you have been employed, as long as you meet the four-week eligibility threshold. The system is designed to prevent workers from losing income during temporary illnesses while also protecting public health, since employees are not forced back to work while contagious.

The First Six Weeks: Lohnfortzahlung from Your Employer

If you are unable to work due to illness (Krankheit), your employer must pay your full salary (100 percent of your normal wages) for the first six weeks (42 calendar days) of continuous illness. This is called Lohnfortzahlung (wage continuation). To qualify, you must have been employed by your current employer for at least four weeks continuously. The six-week period applies to each separate illness: if you recover and return to work for at least one day, and then fall ill with the same condition within six months, the eligibility for a new six-week period depends on specific legal rules about the 'unity of the impediment.'

You must notify your employer as soon as reasonably possible that you are ill and unable to work. In most cases, this means informing them on the first day of illness or as soon as it becomes clear you cannot come to work. Within three calendar days, you must provide a medical certificate (ärztliche Arbeitsunfähigkeitsbescheinigung, or eAU — now increasingly submitted digitally). If your employer requests it, you may need to provide a medical certificate even sooner. Always comply with these notification and documentation requirements to protect your wage continuation rights.

After Six Weeks: Krankengeld (Sick Benefit) from Your Krankenversicherung

Once you have been ill for more than six weeks continuously, your employer's obligation to pay you stops. However, you do not lose income entirely. As of day 43 of illness, your statutory health insurance (Krankenversicherung — the public system to which almost all German employees contribute) takes over and provides Krankengeld (sick benefit). This is a continuation payment that typically amounts to 70 percent of your gross salary or 90 percent of your net salary, whichever is lower. This benefit is lower than your full wage, so you will experience a reduction in income, but you are still protected from complete financial loss. Krankengeld is paid for up to 78 weeks within a three-year period for the same illness, providing long-term protection for serious or chronic conditions.

To ensure a seamless transition from employer sick pay to Krankengeld, you must notify your health insurance (Krankenkasse) of your continued illness within one week of reaching the six-week mark. Your doctor can assist with this notification. Failing to report in time may result in a gap in benefits, so do not delay in contacting your insurance company.

Special Situations: Multiple Illnesses and the Twelve-Month Rule

German law applies special rules when you become ill multiple times with the same or different conditions. If you recover fully and return to work, your next illness — whether the same condition or a different one — begins a fresh six-week paid period. However, if you fall ill again with the same condition within six months of your previous illness and did not work for at least one full day in between, you generally do not earn a new six-week sick pay period; instead, Krankengeld may apply immediately. Additionally, there is a twelve-month rule: the total duration of paid sick leave for the same illness (from your employer) is limited to six weeks within a twelve-month period from the start of the first absence due to that illness. For example, if you take two separate one-week sick leaves for the same condition, your employer's obligation covers only the first six weeks total within that year; further absences due to the same condition will be covered by Krankengeld instead. These rules are complex, and disputes can arise, so document all absences and conditions carefully.

Private Health Insurance (Privat Versicherte)

If you are privately insured (Privatversicherte) rather than covered by statutory health insurance (gesetzliche Krankenversicherung), the rules are similar but not identical. Your employer still pays full wages for the first six weeks. However, the sick benefit (Krankengeld) after six weeks depends on your private insurance contract — not all private plans provide this benefit, and the amount may differ significantly. If you have private insurance, review your policy carefully or contact your insurer to understand your coverage. Many expats and higher-income earners in Germany opt for private insurance, so it is crucial to know what you are covered for.

Practical Rights and Employer Obligations

These three protections — minimum wage, vacation, and sick pay — are among the strongest in the world and reflect Germany's commitment to worker security. However, knowing your rights is only half the battle; enforcing them requires awareness of your responsibilities and your employer's obligations. Below are key practical points for every employee.

• Verify your wage: Check your pay slip (Lohnzettel or Gehaltsabrechnung) every month to ensure your hourly rate or salary meets or exceeds the legal minimum wage for your position and industry. If unsure, consult your collective bargaining agreement or the Federal Statistics Office website.
• Document your vacation: Keep a record of the vacation days you take and the days you earn. Many employers provide a vacation balance (Urlaubssaldo) on your payslip or in an HR portal. At the end of each year, confirm that you have taken or will roll over the correct number of days.
• Provide medical certificates on time: Do not delay in obtaining a medical certificate when ill. Carry a copy or photograph of it, and confirm receipt with your employer in writing or via email to prevent disputes.
• Notify your health insurance: If illness extends beyond six weeks, notify your Krankenkasse by the end of the sixth week to ensure Krankengeld begins without interruption.
• Understand your contract and collective agreement: Some employment contracts or sector-wide collective agreements (Tarifverträge) offer more generous benefits than the legal minimum. Read these carefully or ask HR to explain any bonuses, additional vacation, or sick pay enhancements.

What to Do If Your Rights Are Violated

If your employer fails to pay the minimum wage, denies you vacation, or refuses to continue your wages during illness, you have legal recourse. First, document everything: keep payslips, emails, attendance records, and medical certificates. Then, consider these steps: (1) raise the issue formally with your employer or HR in writing; (2) contact your labor union (Gewerkschaft) if you are a member; (3) consult a labor law attorney (Fachanwalt für Arbeitsrecht) — many offer free initial consultations; or (4) file a complaint with the relevant labor authority (Arbeitsagentur or Landesarbeitsbehörde). Many law clinics and expat support services in Germany also offer free or low-cost legal advice. Do not simply accept violations of these fundamental protections.

Key Takeaways for New Employees

1. Minimum wage as of 2026 is 13.90 euros per hour (gross). Many sectors have higher minimum wages negotiated through collective agreements.
2. You are guaranteed at least 20 days (or 24 working days) of paid vacation per year on a standard five-day week. You continue to earn your full salary while on vacation.
3. During the first six weeks of illness, your employer pays 100 percent of your wages. After six weeks, your health insurance (Krankenkasse) provides Krankengeld at approximately 70–90 percent of your net pay.
4. These protections are non-negotiable and cannot be waived or reduced in your contract, with rare exceptions for very senior roles.
5. Always report illness and provide medical certificates promptly to avoid disputes. Notify your health insurance by week six of illness to ensure uninterrupted sick pay continuation.