Important legislative changes within the BMAS’s jurisdiction: What employers need to know

The Federal Ministry of Labor and Social Affairs (BMAS) has announced a series of legislative changes for 2024 that could have a significant impact on employers. Here are the key points of particular interest to employers:

Statutory Minimum Wage

Starting January 1, 2024, the statutory minimum wage will increase to 12.41 euros per hour worked. Employers must ensure they comply with this new minimum wage threshold to meet legal requirements.

Changes to low-wage employment:

The threshold for marginal-earning jobs will increase from €520 to €538 per month starting in January 2024. Employers who hire workers in these positions must reflect this new threshold in their employment contracts and pay stubs.

Social Security Calculation Thresholds

Adjustments to the contribution assessment ceilings and mandatory insurance thresholds in social security could impact payroll and employees’ social security contributions. Employers must ensure they correctly account for these changes in social security contributions.

Digitization of reporting procedures

The full digitization of the reporting procedure for work-related accidents and occupational diseases under statutory accident insurance is taking effect. Employers must prepare for the new digital reporting practices and ensure they correctly apply the new electronic reporting procedures.

Pension and Retirement Ages

The gradual increase in the retirement age for statutory pension insurance affects employees’ working conditions and retirement plans. Employers should take these changes into account and, if necessary, update their internal policies and informational materials accordingly.

These legal changes require careful review and may necessitate adjustments in various areas of corporate management. It is important that employers familiarize themselves with these changes, assess their impact on operations, and ensure they are implemented in a timely and accurate manner to comply with legal requirements and ensure smooth business operations.

Our team of tax advisors in Düsseldorf and Oberhausen is available to answer any questions you may have.