Although the Minimum Wage Act is not an immigration-specific requirement, labor authorities have started to consider whether foreign nationals are earning the general statutory minimum wage of €8.50 per hour.
Background
The Minimum Wage Act was implemented in January 2015 and applies to all workers in Germany, including foreign nationals with a foreign employer and temporary assignees. The Minimum Wage Act only permits allowances to be included in the calculation if they are intended to remunerate the employee for work. Allowances covering expenses such as housing and transportation costs cannot be included in Minimum Wage Act determinations, and per diem expenses can only be included under certain circumstances.
Violations of the Minimum Wage Act can result in fines of up to €500,000 or exclusion from public contract bids.
What This Means for Employers
Especially when assigning employees from countries with a lower wage level than in Germany, employers should ensure they comply with the Minimum Wage Act.
This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Video
Senior Manager Corrine Tan and Assistant Business Immigration Manager Joycelyn Ang discuss Bangladesh’s work permit security clearance process.
Media mentions
Partner Bo Cooper outlines how the proposed H-1B changes could affect Big Law hiring for foreign lawyers.
Fragomen news
Media mentions
Senior Manager Kinka Tonchev highlights how UK immigration must adapt to attract, retain and support the world’s top talent.
Media mentions
Manager Kirsty Moore and Trainee Solicitor Amanda Ong highlight rising UK construction sponsor licence risks and how businesses can stay compliant.
Awards
Partner Abeer Al Husseini is recognised on the shortlist for "Women Leader of the Year" at the Gulf Business Awards 2025.
Media mentions
Co-Chair Enrique Gonzalez highlights approaches for companies navigating changes to the H-1B visa process.
Video
Learn how international graduates can stay in France for one year to find work or start a business. Discover eligibility requirements, application steps and transition options for the Job Seeker/New Business Creator permit.
Awards
Partner Priscilla Muhlenkamp is a finalist for the 2025 National Law Journal Awards category, "DC Managing Partner of the Year."
Media mentions
Partner Bo Cooper highlights that new $100K H-1B fees could affect US employers, with possible exemptions for critical roles.
Media mentions
Partner Louise Senior highlights the impact of record-breaking UK sponsor licence revocations and the steps hospitality businesses can take to manage compliance.
Media mentions
Partner Bo Cooper explores the impact of H-1B visa changes on companies and their talent strategies.
Video
Senior Manager Corrine Tan and Assistant Business Immigration Manager Joycelyn Ang discuss Bangladesh’s work permit security clearance process.
Media mentions
Partner Bo Cooper outlines how the proposed H-1B changes could affect Big Law hiring for foreign lawyers.
Fragomen news
Media mentions
Senior Manager Kinka Tonchev highlights how UK immigration must adapt to attract, retain and support the world’s top talent.
Media mentions
Manager Kirsty Moore and Trainee Solicitor Amanda Ong highlight rising UK construction sponsor licence risks and how businesses can stay compliant.
Awards
Partner Abeer Al Husseini is recognised on the shortlist for "Women Leader of the Year" at the Gulf Business Awards 2025.
Media mentions
Co-Chair Enrique Gonzalez highlights approaches for companies navigating changes to the H-1B visa process.
Video
Learn how international graduates can stay in France for one year to find work or start a business. Discover eligibility requirements, application steps and transition options for the Job Seeker/New Business Creator permit.
Awards
Partner Priscilla Muhlenkamp is a finalist for the 2025 National Law Journal Awards category, "DC Managing Partner of the Year."
Media mentions
Partner Bo Cooper highlights that new $100K H-1B fees could affect US employers, with possible exemptions for critical roles.
Media mentions
Partner Louise Senior highlights the impact of record-breaking UK sponsor licence revocations and the steps hospitality businesses can take to manage compliance.
Media mentions
Partner Bo Cooper explores the impact of H-1B visa changes on companies and their talent strategies.