Contents
Where an entitlement exists
Only for night work, and even there only in principle: section 6(5) ArbZG requires an appropriate number of paid days off or an appropriate premium on gross pay, unless a collective compensation rule exists. The law names no figure; the case law regularly regards 25 percent as appropriate, and more for permanent night work.
For Sunday and public holiday work, and for extra work, there is no statutory entitlement to a premium. It arises only from a collective agreement, a works agreement, the employment contract or established company practice.
What section 3b EStG governs
Not the entitlement but the taxation. Tax-free are premiums of up to 25 percent for night work between 20:00 and 06:00, up to 40 percent between 00:00 and 04:00 where the work started before midnight, up to 50 percent for Sunday work, up to 125 percent for statutory public holidays and for 31 December from 14:00, and up to 150 percent for 24 December from 14:00, for 25 and 26 December and for 1 May.
The base wage is capped at 50 euros per hour for this. For exemption from social security contributions the limit is 25 euros per hour (section 1(1) sentence 1 no. 1 SvEV). The two limits differ, and that is exactly what often gets overlooked.
Example: a night shift at a base wage of 22 euros
- Eight hours between 22:00 and 06:00, premium 25 percent.
- Premium: 22 euros × 25 % × 8 h = 44.00 euros.
- Tax-free, because 22 euros is below the limit of 50 euros.
- Free of contributions, because 22 euros is below the limit of 25 euros.
Common mistake
An overtime premium gets treated as tax-free. Section 3b EStG covers only night, Sunday and public holiday work. A premium for somebody working longer is fully subject to tax and contributions.
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: 2 September 2026