At the beginning of 2026, numerous legal changes will come into force that will have a direct impact on payroll accounting, personnel planning and social insurance. Small and medium-sized companies in particular are well advised to deal with the changes at an early stage. Those who are prepared in good time will avoid errors, back payments and unnecessary administrative work.
Below you will find a clear summary of the most important changes for 2026.
Minimum wage 2026: Increase to 13.90 euros
From January 1, 2026, the statutory minimum wage will rise to 13.90 euros per hour. This adjustment will affect both mini-jobbers and regular employees. Companies should review their wage models, employment contracts and working hours in order to identify unexpected additional costs or the need for adjustments at an early stage.
New mini-job limit: 603 euros per month
As the mini-job limit is linked to the minimum wage, the monthly earnings limit increases to 603 euros. Calculated over the year, this results in a maximum limit of 7,236 euros.
Employers should keep a close eye on the working hours of their mini-jobbers in order to avoid unintentionally exceeding the limit and thus the transition to employment subject to social insurance contributions.
Minimum training allowance 2026
Apprentices also benefit from higher pay. The statutory minimum training allowance is 724 euros in the first year of training. In the following years of training, the amounts increase in stages:
- Second year of training: +18 %
- Third year of training: +35 %
- Fourth year of training: +40 %
Different regulations may apply in sectors covered by collective agreements.
Social insurance: New contribution assessment limits
The following contribution assessment thresholds apply nationwide for 2026:
- Health and long-term care insurance:
€5,812.50 per month / €69,750 per year - Pension and unemployment insurance:
€8,450 per month / €101,400 per year - Miners’ pension insurance:
€10,400 per month / €124,800 per year
The compulsory insurance limit for health insurance is €6,450 per month or €77,400 per year.
Overview of contribution rates 2026
Social security contribution rates will remain largely stable in 2026:
- Health insurance: 14.6% plus an average additional contribution of 2.9%
- Long-term care insurance: 3.6%
– Supplement for those without children: +0.6%
– Reductions for parents with a second child or more: 0.25% each (max. 1%) - Pension insurance: 18.6 %
- Unemployment insurance: 2.6 %
- Insolvency money levy: 0.15 %
Basic allowance increases
The basic tax-free allowance will be increased to in 2026:
- 12,348 euros for single taxpayers
- 24,696 euros for spouses and life partners
This reduces the income tax burden and employees automatically benefit from a higher net salary.
Non-cash benefits and meals 2026
The following remuneration in kind values apply at the turn of the year:
- Breakfast: approx. € 71 per month / € 2.37 per day
- Lunch or dinner: approx. € 137 per month / € 4.57 per day
- Full board: € 345 per month
- Free accommodation: € 285 per month or € 9.50 per day
For shared accommodation – depending on occupancy – discounts of up to 60% are possible.
The flat rates for additional subsistence expenses in Germany remain unchanged. New foreign per diems are yet to be published.
Commuting allowance: uniformly 0.38 euros
From 2026, the commuting allowance of EUR 0.38 per kilometer will apply permanently from the first kilometer. This will affect both employees’ tax returns and payroll accounting for travel allowances.
Company events: Allowance remains at 110 euros
A tax-free allowance of 110 euros per employee and event continues to apply to company parties. Amounts in excess of this must be taxed at a flat rate of 25% – an important point when planning summer parties or Christmas parties.
Child sickness benefit: Extended entitlement
The following regulations will apply from 2026:
- 15 days per child and parent
- 30 days for single parents
If there are several children, the entitlement increases to a maximum of 35 days per parent or 70 days for single parents.
Another new feature is that days spent accompanying a child in hospital are no longer counted towards the regular entitlement.
Company cars: electric mobility still favored
Purely electric company cars remain attractive for tax purposes. For vehicles with a list price of up to 100,000 euros, only a quarter of the list price will continue to be used as the assessment basis – for the time being until the end of 2030.
However, the flat-rate employer reimbursements for charging costs will no longer apply as of January 1, 2026. Companies should adjust their company car and billing regulations accordingly.
Active pension: planned change from 2026
The German government is planning to introduce a so-called active pension. Concrete legal regulations are not yet available. Companies should follow further developments closely and consult with tax advisors or payroll experts at an early stage.
Summary:
The year 2026 will bring numerous changes that require careful preparation. An early review of payroll accounting and internal processes helps to remain legally compliant and keep administrative costs to a minimum.
