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For most employees pay is set by collective wage agreements or by an agreement, laid down in an individual contract, that the relevant collective wage agreement is to be applied to the employment relationship. Employers frequently pay remuneration above that laid down in collective wage agreements.
In Germany there is no general minimum wage, as exists in other EU countries. It is only in individual sectors of the building trade that a minimum wage is laid down. Minimum standards for wages and paid leave apply to the building trade, the demolition trade, the roofing trade and the painting trade. Preparations are under way for similar rules for cleaners.
Wages and salaries are normally paid in respect of a whole month and paid into the employee's current account at the end of the month. The employer will have calculated and deducted from gross pay wages tax, solidarity surcharge and, where appropriate, church tax, and also employees' shares of contributions for social security insurance (health-care and pensions insurance) and unemployment insurance. The employer pays all deductions directly over to the tax office and the health insurance funds. The calculation of net pay and the amount of the deductions is recorded clearly in the pay slip which the employee receives each month from his employer.
Text last edited on: 11/2006
Source: European Union
© European Communities, 1995-2007
Reproduction is authorised.
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