Employment in Germany is governed by federal statute and often also by collective and works agreements. The statutory minimum wage is EUR 13.90 an hour from 2026, rising to EUR 14.60 in 2027. Works councils can be elected in establishments with five or more permanent staff and must be heard before every dismissal, and companies with more than 2,000 employees must give employees half the supervisory board seats. Highly qualified non-EU staff commonly use the EU Blue Card, whose salary threshold is linked to the pension contribution ceiling.
Minimum wage and notice periods
The statutory minimum wage is EUR 13.90 gross per hour from 1 January 2026 and EUR 14.60 from 1 January 2027. Collective agreements may set higher sector rates.
The basic statutory notice period is four weeks to the 15th or the end of a calendar month. When the employer gives notice, the period lengthens with service, for example to one month after two years and two months after five years. During an agreed probation of up to six months, either side can terminate with two weeks' notice.1234
Works councils
A works council can be elected in any establishment that as a rule has at least five permanent employees entitled to vote, three of whom are eligible for election. A foreign-owned company's small German office can therefore have a works council.
Where there is a works council, it must be heard before every dismissal. A dismissal given without that hearing is invalid, so the consultation must be built into any termination process.56
Board-level co-determination
AGs, KGaAs, GmbHs and cooperatives that as a rule employ more than 2,000 employees fall under the Co-determination Act. Their supervisory board has equal numbers of shareholder and employee representatives: six each up to 10,000 employees, eight each up to 20,000 and ten each above that. A GmbH in scope must therefore set up a supervisory board even if its articles do not otherwise require one.
A separate statute provides one-third employee representation for smaller companies; its thresholds were not confirmed.78
Hiring non-EU staff
The EU Blue Card is the main route for university-qualified non-EU employees. The salary must be at least 50 percent of the annual contribution assessment ceiling of the general pension insurance, or at least 45.3 percent with Federal Employment Agency approval for listed occupation groups and for recent graduates. Because the ceiling changes each year, check the euro figure for the year of application.9
| Threshold | Consequence |
|---|---|
| At least 5 permanent employees entitled to vote (3 eligible) in an establishment | Works council can be elected |
| More than 2,000 employees (AG, KGaA, GmbH, cooperative) | Parity supervisory board under the Co-determination Act |
| Up to 10,000 employees | 6 shareholder and 6 employee representatives |
| 10,001 to 20,000 employees | 8 and 8 |
| More than 20,000 employees | 10 and 10 |
Documents usually needed
- Written employment contract stating pay at or above the applicable minimum wage
- Record of the works council hearing before any dismissal
- For Blue Card hires: job offer showing a salary that meets the threshold for the year, and evidence of the qualifying degree
- Headcount records showing the regular number of employees for co-determination thresholds
Common mistakes
- Dismissing an employee without first hearing the works council, which makes the dismissal invalid.
- Applying the four-week basic notice period to long-serving employees whose statutory notice has lengthened.
- Relying on the two-week probation notice after the six-month maximum.
- Setting 2027 pay at the 2026 minimum wage.
- Overlooking that headcount thresholds refer to the regular number of employees, not a single date.
When the business crosses borders
- The Blue Card salary threshold is a percentage of a ceiling that changes each year, so offers prepared late in a year may need adjusting.
- Group restructurings that cross 2,000 employees in Germany trigger a parity supervisory board for the German company.
- Social security coverage for staff seconded from abroad depends on EU coordination rules or bilateral agreements, which were not reviewed here.
Questions businesses ask
Will our small German office have a works council?
The law provides for a works council in establishments with at least five permanent employees entitled to vote, three of whom are eligible. Once one exists, it must be heard before every dismissal.56
What is the salary threshold for an EU Blue Card?
At least 50 percent of the annual pension contribution assessment ceiling, or 45.3 percent with Federal Employment Agency approval for listed occupation groups and recent graduates.9
What this guide does not yet confirm
These points need checking with a qualified local professional in Germany before you rely on them.
- Social security contribution rates and contribution ceilings for 2026 were not confirmed.
- Working time limits (Working Hours Act), minimum annual leave (Federal Leave Act) and written-terms rules (Evidence Act) were not confirmed.
- Protection Against Dismissal Act thresholds and severance practice were not confirmed.
- One-Third Participation Act thresholds were not confirmed.
- The 2026 euro amounts of the Blue Card thresholds and work permit procedures for other categories were not confirmed.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 18 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
The statutory minimum wage is EUR 13.90 gross per hour from 1 January 2026. All employees covered by the Minimum Wage Act.
The statutory minimum wage rises to EUR 14.60 gross per hour from 1 January 2027. All employees covered by the Minimum Wage Act; announced and enacted, not yet in effect.
The basic statutory notice period for an employment relationship is four weeks to the 15th or the end of a calendar month, and the employer's notice period lengthens with service, for example to one month after two years and two months after five years, up to seven months after 20 years. Statutory minimums under the Civil Code; collective agreements may differ.
Intermediate tiers: three months after 8 years, four after 10, five after 12, six after 15, each to the end of a calendar month.
During an agreed probationary period of up to six months, either party may terminate with two weeks' notice. Statutory rule; applies only to agreed probation of at most six months.
A works council is elected in establishments that as a rule have at least five permanent employees entitled to vote, three of whom are eligible for election. Works Constitution Act; threshold applies per establishment (Betrieb).
The works council must be heard before every dismissal, and a dismissal given without hearing the works council is invalid. Establishments with a works council.
The Co-determination Act applies to AGs, KGaAs, GmbHs and cooperatives that as a rule employ more than 2,000 employees. Board-level co-determination with a parity supervisory board.
Under the Co-determination Act the supervisory board has equal numbers of shareholder and employee representatives: six each up to 10,000 employees, eight each up to 20,000 and ten each above 20,000. Companies within § 1 MitbestG; companies in the first tier may opt for larger boards in their articles.
An EU Blue Card requires a salary of at least 50 percent of the annual contribution assessment ceiling of the general pension insurance, or at least 45.3 percent with Federal Employment Agency approval for listed occupation groups and for graduates who obtained their degree no more than three years before applying. Non-EU skilled workers with a qualifying degree; the euro threshold changes each year with the contribution ceiling.
Questions on this topic
9 statements on employment, payroll and mobility in Germany
