Legislative Changes in Germany for the New Year – What to Consider in 2025

Numerous legal changes will come into force in Germany at the beginning of 2025. We have summarized the most important changes for you.

Minimum wage

Since January 1, 2025, the statutory minimum wage has risen to 12.82 euros.

Mini-job limit

The monthly earnings limit for so-called mini-jobbers has been raised. It is now at 556 euros gross. The annual earnings limit increased accordingly to 6,672 euros.

Social insurance limits since January 01, 2025

BBG Beitragsbemessungsgrenze = contribution assessment ceiling

Social security contribution rates since January 01, 2025

Entitlement to childcare sickness benefit

The entitlement to childcare sickness benefit was extended with the Care Studies Strengthening Act. Since January 1, 2024, employees have been entitled to up to 15 days per calendar year for children under the age of 12 with statutory health insurance for a limited period both in 2024 and 2025; single parents are entitled to up to 30 days per calendar year. If there are several children, the maximum number of entitlement days is 35 working days per year, for single parents 70 working days.

Increase in supplementary income limits for reduced earning capacity pensions

Additional income limits must still be observed for pensioners with reduced earning capacity. These have been increased again for 2025. If you receive a pension due to a partial reduction in earning capacity, the annual supplementary income limit from January 1, 2025 will be 39,322.50 euros. For pensions due to full reduction in earning capacity, it will be 19,661.25 euros.

Equalization levy: new statutory graduated amounts will apply for the first time in 2025

Employers who do not or only partially fulfill their employment obligation with regard to severely disabled people must pay a compensatory levy of up to 720 euros. The exact amount depends on the size of the company and the exact employment rate.

The corresponding regulations (Act on the Promotion of an Inclusive Labor Market), which led to an increased compensatory levy, already came into force on 1 January 2024. The increased amounts for the notification year 2024 are now due for the first time on March 31, 2025.

You can find more detailed information in our info brochure “ Employment of severely disabled people ” (in German).

Fourth Bureaucracy Relief Act:

Formal simplifications in labor law

• Verification Act: Proof of essential working conditions in special text form (e.g. e-mail) instead of written form as before (but not in sectors covered by the Act to Combat Clandestine Employment)
• Temporary employment: contract between lender and hirer in text form possible
• Youth Employment Protection Act: generally text form possible for notices etc.
• Working Hours Act: notices in text form possible (e.g. on the intranet)
• Fixed-term employment law: time limit to the standard retirement age possible in text form
• Industrial Code: employment references in electronic form (with qualified signature) possible with the employee's consent

Note: The formal simplifications in the Federal Parental Allowance and Parental Leave Act (BEEG), meaning that the application for parental leave and the employer's response can be made in text form, will not come into force until May 1, 2025.

Formal simplifications in association law

The new regulation under the Fourth Bureaucracy Relief Act changes the previous written form requirement for written resolutions to text form. You can find all relevant information here (in German).

Maximum period of entitlement to short-time working allowance extended

On January 1, 2025, the Third Ordinance on the Period of Entitlement to Short-Time Working Allowance came into force. This extends the maximum period of entitlement to short-time working allowance from 12 to 24 months on the basis of Section 109 (4) SGB III. This extension is limited until December 31, 2025.

Launch of the Consular Services Portal

The digital Consular Services Portal of the Federal Foreign Office (AA) has been launched on January 1, 2025. With the Consular Services Portal, the AA is creating a central point of contact to apply online for services at German missions abroad. The first step will be for visa applications for the EU Blue Card for skilled workers, the opportunity card, various visas for taking up employment and for carrying out a skills analysis. A visit to the diplomatic missions abroad is then only necessary to submit biometric data such as fingerprints and to pay the fee. From January onwards, online applications will be made uniformly via the website of the Consular Services Portal.

CO2 levy

The CO2 levy in Germany will be raised again from 2025. This measure is part of the German government's strategy to reduce CO2 emissions and achieve its climate targets. The CO2 levy will rise from the current 45 euros to 55 euros per ton.