Germany Debates Working Hours Expansion as Cost Crisis Deepens
As the minimum wage climbs to €13.90 on July 1, the German government and industrial employers are pushing to extend daily maximum working hours beyond legal limits, triggering fierce union opposition and court rulings that reshape workplace safety protections.
The Summer 2026 Labour Reset
Germany's labour market is entering a period of high tension. On June 25, a Darmstadt Social Court expanded the definition of work-related accidents to cover employees' midday breaks during remote work—a ruling that gives thousands of home-office workers new legal protections. Yet that same week, corporate and government voices are pushing hard in the opposite direction.
On June 26, workers at BASF rejected management calls to renegotiate the industrywide 35-hour week without extra pay. The chemical giant, facing a halved profit margin (from €10.4 billion in 2025 to €5.3 billion), has delayed a tariff-based special payment worth 18.4% of monthly salary—typically due in July—until 2027, affecting roughly 90,000 employees. Supervisory board chair Martin Brudermüller has publicly argued for a 40-hour week as the only way to keep structural costs competitive at German plants.
Political Push for Longer Hours
Meanwhile, Chancellor Friedrich Merz has questioned Germany's work ethic and legal framework. A draft bill circulating in Berlin would allow companies covered by collective bargaining agreements to exceed the current 12-hour daily maximum. Unions have already scheduled a Hamburg rally in early July titled "With Power for the Eight!"—a reference to the traditional eight-hour workday. Polling cited by organisers shows a large majority of employees oppose longer hours and instead demand work-time cuts.
There is one bright spot: effective July 1, the statutory minimum wage rises to €13.90 per hour—the largest increase since Germany introduced a national minimum wage in 2015. Additionally, the commuter allowance has been raised to 38 cents per kilometer from the first kilometer, projected to save commuters roughly €1.1 billion this year. Yet the pay bump is overshadowed by the hours debate.
For Foreign Workers
If you are employed in Germany or planning to take a job, the minimum wage increase directly affects your net monthly income—roughly €2,409 gross for full-time work. However, pay attention to industry-level tariff negotiations happening now. If your employer or sector seeks to extend working hours, check your contract carefully and consult your works council or union representative. Non-EU workers on residence permits tied to employment should also monitor any changes to their employer's operating terms, as structural cost-cutting can sometimes trigger restructuring.
Sources
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