What are the legislative changes for 2024 in Germany?
We take a closer look at the legislative changes that are set to take effect in 2024. These changes will impact the world of employment in Germany, and it’s important to be aware of them in order to ensure compliance. In this blog, we provide a summary of the key changes in employment law in Germany for 2024.
Social security
Contribution assessment limit starting Jan 1st, 2024
- Health and care insurance (Kranken- und Pflegeverischerung): 2024: €62.100,00 (p.m. €5.175,00)
- Pension and unemployment insurance (Renten- und Arbeitslosenversicherung) West Germany: 2024: €90.600,00 (p.m. €7.550,00)
- Pension and unemployment insurance (Renten- und Arbeitslosenversicherung) East Germany: 2024: €89.400,00 (p.m. €7.450,00)
- Health insurance contributions and nursing insurance ceiling: increase to €5.175 per month (2023: €4.987,50).
- Private health insurance: The threshold allowing to opt for private health insurance increases to €69.300 per year.
Other
- Insolvency charge is set at 0,06%.
- Employer and employee contribution to unemployment insurance remains 1,3% ( as in 2023).
Minimum wage
In 2024, the statutory minimum wage will increase to €12,42 per hour (in 2023: €12,).
Tax free inflation bonus
- Starting October 26th, 2022, employees can receive a maximum of €3.000 tax-free inflation bonus from their employer.
- Please note that the inflation bonus is subject to the Equal Treatment Act.
- The rule applies until December 31, 2024. A contract amendment is required and it must explicitly state that the bonus is being paid to mitigate the costs of the inflation.
- There is no obligation as employer to pay this tax-free inflation bonus.
Tax allowance
The basic tax-free allowance in 2024 will be increased to €11.604,00.
Immigration salary levels
In 2024, the minimum salary requirement for a Blue Card for regular professions (or Blue Card Type 1), which is the only work permit we support, will be a gross annual salary of at least €45,300 (as of 2024). For bottleneck profession, an EU Blue Card can also be obtained with a lower gross annual salary of at least €41,041.80 (as of 2024) if the Federal Employment Agency (BA) has approved the employment.
Electronic doctor’s note
Starting January 2023 and continuing in 2024, employees will no longer have to submit a doctor’s note to their employer in case of illness. Employees solely have to inform their employer that they are ill. The employer will then retrieve the doctor’s note electronically from the employee’s health insurance.
This new process does only apply to employees who are publicly insured and in case of regular sickness of the employee. For example, in case of absence from work due to illness of the child of an employee, the employee will still have to send us a copy of the doctor’s note. Also privately insured employees will have to keep handing in a copy of the doctor’s note.
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