Every employee must be paid at least the minimum wage. This has always been the case, but in 2018 some of the rules regarding the minimum wage were amended. We’ve set out the most important rules for you below.
PLEASE NOTE: the collective agreement may differ from the statutory rules.
Statutory minimum wage for 2018
The minimum wage has been increased again for 2018. The following amounts apply for the first half of 2018:
| Age | Percentage | Per month | Per week |
| Aged 22 and over | 100% | € 1,578.00 | € 364.15 |
| 21 years | 85% | € 1,341.30 | € 309.55 |
| 20 years | 70% | € 1,104.60 | € 254.90 |
| 19 years | 55% | € 867.90 | € 200.30 |
| 18 years | 47,5% | € 749.55 | € 172.95 |
| 17 years | 39,5% | € 623.30 | € 143.85 |
| 16 years | 34,5% | € 544.40 | € 125.65 |
| 15 years | 30% | € 473.40 | € 109.25 |
Of course, employees are also entitled to at least 8% in holiday pay.
The minimum wage for 18- to 22-year-olds is being increased in stages. Employers will be compensated through a wage cost subsidy. See our article on this subject.
Hourly wage
The law sets the minimum wage on a monthly, weekly and daily basis. To work out the minimum hourly wage, you need to divide the monthly wage by the number of hours in a full working week in your sector. A 22-year-old working in a sector where a full-time working week is 36 hours has a gross minimum hourly wage of: €364.15/36 = €10.12.
Overtime
From 2018 onwards, an employee must also be paid at least the minimum wage for overtime. They are also entitled to the minimum holiday allowance of 8% for these hours.
An employee working a 40-hour week who works 10 hours of overtime in a given week is entitled to a wage of at least 125% of the minimum weekly wage for that week.
Pay out in full
You must pay the minimum wage to the employee by bank transfer. If you pay the employee more than the statutory minimum wage, you may pay the excess in cash. This is set out in the Act on Tackling Sham Arrangements (WAS).
Of course, you do not pay the employee the amounts mentioned above. After all, these are the gross amounts. The employer must deduct payroll taxes and the employer’s contribution to the pension scheme from these amounts. The net amount remaining after these deductions must be paid to the employee by bank transfer.
For all employment relationships
From 2018, the minimum wage applies to all contracts for remuneration, not just employment contracts. Clients must take this fully into account. See also our article from late last year on this subject.
Inspection
Enforcement of the rules on the minimum wage is carried out by the SZW Inspectorate. This body can impose hefty fines on employers (the maximum fine amounts are set out below):
- €12,000 if the payslip is incorrect and/or you cannot prove how much pay and/or holiday pay you have paid, or how many hours your employee has worked;
- €10,000 per employee if you underpay them;
- €1,250 if you pay the wages in cash;
- €2,000 per employee if you pay too little holiday pay;
- a penalty of €400 per employee per day if you do not make the payment within 4 weeks.