Labor law 2026: These changes to the law will apply from 01.01.2026
At the turn of 2026, several important changes to employment law came into force that directly affect both employers and employees. The focus is on higher wages, new tax incentives for older employees, additional information obligations and European regulations on pay transparency. The following overview shows the key changes and briefly explains what they mean in practice.
Table of contents:
- Minimum wage 2026: Increase to 13.90 euros per hour
- Mini-job limit increases to 603 euros per month
- Active pension 2026: Tax-free additional income for pensioners
- New information obligations for foreign employees
- EU Pay Transparency Directive: implementation is getting closer
- Minimum care wage 2026: Significant increases from July
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Minimum wage 2026: Increase to 13.90 euros per hour
Since January 1, 2026, the statutory minimum wage has been €13.90 gross per hour. The increase will affect almost all sectors and will lead to a need to adjust working hours and remuneration, particularly in marginal employment relationships.
For employers, this means a review of existing employment contracts and pay slips. Employees benefit from a noticeable increase in income, particularly in the low-wage sector.
Mini-job limit increases to 603 euros per month
Parallel to the minimum wage increase, the monthly earnings limit for mini-jobs was also adjusted. Since 01.01.2026, this has been 603 euros, as it is dynamically linked to the minimum wage.
This means that marginal employment remains possible, but requires precise coordination of the number of hours and remuneration in order to avoid unintentionally exceeding the limit.
Active pension 2026: Tax-free additional income for pensioners
The so-called active pension was newly introduced. Employees who work beyond the regular retirement age can now earn up to EUR 2,000 per month or EUR 24,000 per year tax-free.
The aim of the regulation is to create incentives to work longer and counteract the shortage of skilled workers. This opens up new opportunities for companies to retain experienced employees for longer.
New information obligations for foreign employees
Since 01.01.2026, employers must inform foreign employees from third countries about free advice and support services. This obligation has been enshrined in the Residence Act and applies in particular to skilled workers who have been placed.
Companies should document the relevant information processes in order to avoid legal risks. The regulation serves to better protect foreign employees and ensure transparency in the placement process.
EU Pay Transparency Directive: implementation is getting closer
The EU Pay Transparency Directive must be transposed into German law by June 2026 at the latest. Employers should already be prepared for extended information and disclosure obligations regarding remuneration.
The aim is to prevent pay discrimination and strengthen equal treatment of women and men. In future, transparent remuneration structures will play a much greater role in employment law.
Minimum care wage 2026: Significant increases from July
From July 1, 2026, significantly higher industry-specific minimum wages will apply to employees in the care sector. Depending on qualifications, these will rise to over 21 euros per hour for care workers.
Care facilities must adjust their cost and personnel planning at an early stage. At the same time, the attractiveness of the nursing professions should be sustainably improved.
Conclusion: Employment law 2026 will bring noticeable changes
The changes to employment law in 2026 will bring both financial improvements for employees and new obligations for employers. Those who react early, review employment contracts and adapt internal processes can avoid legal risks and benefit from the new regulations.
