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Thursday, March 12, 2026

German Employment Law: What to Expect in 2026 - SHRM

In 2026, new legislation will be introduced into German employment law bringing significant changes for HR.

Social Insurance Calculation Factors

The factors for calculating the levels in the social insurance system were updated on Jan. 1, 2026. The updated rates and limits can be found here and the updated contribution assessment ceilings for statutory health and pension insurance can be found here. The statutory minimum wage was increased to 13.90 per hour worked. The annual earnings limit for “mini-jobs” (a form of part-time employment allowing workers to earn a limited income without being subject to the usual full social security contributions) has been raised for 2026 to 7,236 (603/month). Further information and guidance can be found here.

Removal of Post-Retirement Employment Restriction

The restriction on consecutive fixed-term employment without objective justification (sachgrundlose Befristung) has been removed for individuals who have reached the statutory retirement age (Regelaltersgrenze). Previously, employees could continue working after reaching this age only by entering into either a fixed-term contract without objective justification with a different employer, a fixed-term contract with objective justification, or an indefinite employment contract. This change aims to simplify the process of re-employment, particularly for individuals seeking to return to work with their former employer.

Extension of Short-Time Work Allowance

The maximum period for...



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