As usual, there are some important changes in German employment law that went into effect at the beginning of the new year. Below are eight of the most important new developments about which employers may want to be aware.
The statutory minimum wage was raised again as of January 1, 2022. The minimum gross hourly wage is now 9.82. The new German coalition government’s plan to increase the minimum hourly wage to 12 will also take effect soon, with regulations scheduled to be implemented sometime this year.
The exemption limit for noncash benefits that employers can pay their employees tax-free has increased from 44 to 50 per month beginning January 1, 2022. Another new aspect is that a cash card or voucher must meet the stricter requirements of Section 2(1) No. 10 of the Payment Services Oversight Act (Zahlungsdiensteaufsichtsgesetz or ZAG) beginning January 1, 2022, in order to remain tax-free. This means that only earmarked merchant and merchandise group cards and vouchers will be possible.
The temporary special regulations for short-time work allowances due to the COVID-19 pandemic have been extended until June 30, 2022.
As of January 1, 2022, unemployed persons are not only able to register in person at the relevant employment agency, but are also able to do so electronically. The new, legally secure electronic unemployment registration requires the use...
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