Minimum wage is the statutory minimum wage per hour of work. Employers must pay at least the statutory minimum wage for every hour worked. The current statutory minimum wage (as of 2026) is €13.90 – it will rise to €14.60 in 2027.
For the Payroll accounting The minimum wage is relevant because it sets the lower limit for the calculation of working hours and remuneration components.
Basics
The minimum wage is linked to the actual hours worked. In practice, it is therefore crucial that working hours are recorded completely and verifiably – especially in cases of fluctuating working hours, bonuses, or variable remuneration components.
The minimum wage acts as a lower limit for remuneration. Which payments are to be taken into account in an individual case assessment depends on the principles of labour law and the specific remuneration arrangements.
Legal framework
In Germany, the general statutory minimum wage in Minimum Wage Act regulated. The level of the minimum wage is set in accordance with a procedure laid down by law and is subject to change.
In addition to the general minimum wage, in individual sectors Statutory minimum wages apply as binding minimum working conditions if corresponding collective agreements have been declared generally binding.
Classification for payroll
In the Payroll It must be ensured that the hourly rate complies with the minimum wage. Two points in particular are crucial in this regard:
- correct recording of working hours (e.g. for shift work, changing work locations or Working time account)
- clean allocation of remuneration components (e.g. basic pay, supplements, allowances)
Practical tip: The more variable the pay structure is, the more important a clear payroll type logic becomes, so that minimum wage checks remain comprehensible.
Documentation and supporting evidence
Transparent documentation is essential for ensuring compliance with the minimum wage. This includes, in particular, records of working hours and payroll-related documents that demonstrate the link between working hours and pay.
Practical test steps
- Record working hours in full (actual times).
- Correctly allocate remuneration components (wage types).
- Check the plausibility of the hourly rate for each pay period.
- In the case of sector-specific regulations, check whether additional minimum working conditions apply.
Distinction: Sectoral minimum wage and minimum wage (construction)
In some sectors, there are sector-specific minimum wages based on collective agreements which – depending on their legal basis – may take precedence or serve as a supplement. One example is the Minimum wage (construction) within the construction-related collective bargaining landscape.
Therefore, it is crucial for businesses to determine whether they fall within the technical scope of a sector for which additional minimum working conditions are mandatory.
Typical sources of error
- Incomplete or inaccurate timesheet recording
- Unclear types of pay (bonuses/allowances not clearly allocated)
- Takeover of outdated minimum wage levels in master data
- Industry classification not checked, although industry-specific minimum wages are possible
FAQ
What is the minimum wage?
A statutory minimum wage per working hour that must not be undercut.
Are there any additional sector-specific minimum wages?
Yes, in certain sectors, collectively agreed minimum wages may be regarded as binding minimum working conditions.
Why is this important for payroll accounting?
Because working hours and pay must be recorded in such a way as to ensure that the minimum wage per hour is adhered to.
Conclusion
The minimum wage is the legal pay floor per working hour. For payroll accounting, accurate time recording and pay allocation are crucial to ensure that the requirements are reliably met.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
