Basic wage
The base wage is the ongoing pay due for regular working time, converted to one hour. It is the basis of assessment for premiums under section 3b EStG.
As of:September 2026
What counts towards it and what does not
The base wage includes the ongoing pay for regular working time, including recurring allowances such as a hardship allowance or a function allowance. It does not include the premiums themselves or one-off payments such as Christmas pay or holiday pay.
The conversion is to regular working time, not to the time actually worked. Anyone earning 3,480 euros at 38 weekly hours has a base wage of 3,480 ÷ (38 × 4.348) = 21.06 euros per hour, regardless of whether they worked more or less in that month.
MetronHR works these figures out itself: time accounts, premiums, overtime and the limits of the German Working Hours Act, with every booking.
Two limits that get confused
For the tax exemption under section 3b(2) EStG the base wage is capped at 50 euros per hour. For exemption from social security contributions the limit is 25 euros per hour (section 1(1) sentence 1 no. 1 SvEV).
Anyone with a base wage above 25 euros therefore gets their premiums tax-free but only partly free of contributions. The excess part is subject to contributions, and that very difference is regularly overlooked in payroll.
Example: base wage 32 euros and a night premium
- Eight night hours between 22:00 and 06:00, premium 25 percent.
- Premium: 32 euros × 25 % × 8 h = 64.00 euros.
- Tax-free in full, because 32 euros is below the limit of 50 euros.
- Free of contributions only up to 25 euros: 25 euros × 25 % × 8 h = 50.00 euros. The remaining 14.00 euros is subject to contributions.
Common mistake
The base wage gets calculated from the monthly pay actually made divided by the hours actually worked. What counts, though, is regular working time, otherwise the basis of assessment fluctuates from month to month.
Further reading
- Section 3b(2) EStG
- Section 1(1) sentence 1 no. 1 SvEV
This is not legal advice; for a specific case at your workplace you are better off asking someone qualified to give it.
Published by: AMNAU GmbH
Editorial responsibility: Ugur Aydogan, Product development.
Last reviewed: September 2026
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Related terms
Time premium
A time premium is a supplement on the base wage for work at certain times or beyond regular working time. Apart from night work, there is no statutory entitlement to one.
Night work
Night work is any work covering more than two hours of night time. Under section 2(3) ArbZG, night time runs from 23:00 to 06:00, and in bakeries and confectioneries from 22:00 to 05:00.
Minimum wage
The statutory minimum wage is the amount every employee can claim as a minimum per clock hour. Since 1 January 2026 it has been 13.90 euros gross.
Sector minimum wage
An industry minimum wage is a collectively agreed minimum wage declared binding by statutory instrument for all employers and employees in an industry.
Midi-job
A midi-job is employment in the transitional band: the regular pay is above the marginal earnings threshold but not above 2,000 euros a month.