A Comprehensive Guide to Overtime (Überstunden) in Germany: Rights and Obligations
Overtime (Überstunden) is one of the most frequently discussed topics between employees and employers in Germany. Many people want to know the legal basis for overtime, how it is calculated and whether compensation is provided in the form of extra pay or time off in lieu. This comprehensive guide explains everything you need to know about overtime in Germany, including the relevant laws and regulations, calculation methods and practical tips.
The term overtime (Überstunden) refers to all working hours performed by an employee that exceed the working time stipulated in the employment contract or collective agreement (Tarifvertrag). For example:
If the employment contract specifies a 40-hour working week, every hour worked beyond 40 hours in that week counts as overtime.
Many companies use precise systems to record daily or weekly working time; any additional hours are credited to the employee’s time account as overtime (Überstunden).
Note: In some sectors or professions, hours beyond the weekly norm are not automatically counted as overtime if there are special arrangements such as flexible working time (Gleitzeit) or a working time account (Zeitkonto).
Working Time Act (Arbeitszeitgesetz – ArbZG)
The Working Time Act generally limits the maximum daily working time to 8 hours.
It may be extended to up to 10 hours per day if, within 6 calendar months or 24 weeks, the average does not exceed 8 hours per day.
Employers must ensure adequate rest periods and protect employees’ health.
Collective agreements (Tarifverträge)
In many industries, collective agreements regulate overtime in great detail.
They may define:
the maximum amount of overtime,
overtime pay rates,
or specific rules for compensation by time off.
Individual employment contract (Arbeitsvertrag)
An employment contract may contain explicit rules on overtime, such as:
whether the employee is obliged to work overtime,
how overtime is calculated and compensated,
whether a certain amount of overtime is deemed to be included in the agreed salary.
Contractual obligation
If the employment contract or a collective agreement explicitly allows the employer to require overtime in cases of operational necessity (betriebliche Notwendigkeit), the employee may be required to perform such overtime within legal limits.
Exceptional circumstances
Employers may sometimes insist on overtime in emergencies or exceptional situations (e.g. unexpected surges in demand or staff shortages).
However, these situations are supposed to be temporary and cannot become a permanent substitute for proper staffing.
Balance and reasonableness
Employers are not allowed to demand unlimited overtime.
They must respect statutory maximum working hours and the employee’s rights to rest, health and private life.
If overtime demands exceed legal or reasonable boundaries, employees can refuse them.
Recording working time
Many businesses use electronic systems to record starting times, breaks and finishing times.
Based on these records, all hours over the agreed daily or weekly working time are identified as overtime.
Overtime pay rates
In the absence of a collective agreement or specific clauses in the employment contract, German law does not require a mandatory overtime premium.
This means overtime may be paid at the normal hourly rate.
Where provided by contract or collective agreement, overtime premiums may range from around 15 % to 50 % or more, depending on the sector and the agreement.
Time off in lieu (Freizeitausgleich)
Instead of monetary compensation, some companies grant time off in lieu for overtime.
Typically, this may be:
hour for hour (1:1), or
according to the agreed overtime premium, if so stipulated.
Time off in lieu should generally be granted within a reasonable period so that it actually serves as rest and recovery.
Legal limits
Total daily working time (regular hours plus overtime) must not exceed 10 hours, and the six-month / 24-week average must not exceed 8 hours per day.
Violations of the Working Time Act can result in fines or other legal consequences for the employer.
Health protection
Extensive overtime over longer periods can harm an employee’s physical and mental health.
For this reason, health and safety authorities, as well as works councils (where present), monitor compliance with working time regulations.
Right to refuse overtime
If overtime requests breach legal limits, collective agreements or the employee’s legitimate interests (e.g. health issues, family responsibilities), the employee is entitled to refuse such overtime.
Unlawful sanctions or disadvantages for justified refusal are not allowed.
Yes. Overtime pay is considered part of the employee’s taxable income, which means:
Income tax (Lohnsteuer)
Overtime pay is taxed just like regular wages.
Social security contributions
Regular contributions to pension, unemployment, health and long-term care insurance also apply to overtime pay.
As a result, overtime can increase the employee’s total social security contribution base.
Transparency in time recording
It is best to use transparent, reliable systems for recording working time.
Employees should be able to check their time records and overtime balances regularly.
Forward planning
Work schedules and staffing should be planned in such a way that excessive or permanent overtime is avoided as far as possible.
This reduces costs and protects employee motivation and health.
Open communication
When overtime is necessary, employer and employee should have a clear discussion about:
the reasons for overtime,
the expected volume and duration,
and the form of compensation (pay or time off).
Flexibility through working time accounts
Working time accounts (Arbeitszeitkonto / Zeitkonto) can help to balance seasonal fluctuations or peak workloads.
Employees can accumulate overtime and use it later as additional paid leave or longer rest periods.
Review your employment contract
Check whether your contract contains explicit provisions on overtime:
Are you required to work overtime?
Are overtime hours paid, included in the salary or compensated with time off?
Keep your own records
In addition to the employer’s system, keep a personal record of your daily working hours.
This can be helpful if disputes arise regarding your actual overtime.
Consult your works council or trade union
If a works council exists in your company, it can support you with questions or conflicts concerning overtime.
Trade unions also provide advice and legal support on working time issues.
Maintain a healthy work–life balance
Pay attention to your health and family life.
If overtime becomes a constant burden and negatively affects your well-being or personal relationships, talk to your employer and seek alternative solutions.
Overtime (Überstunden) in Germany is an important tool for meeting increased operational demands and can offer employees opportunities to earn additional income. However, a fair and sustainable overtime system requires clear agreements, compliance with legal limits, transparent time recording and mutual understanding between employers and employees.
By knowing their rights and obligations – through carefully reading employment contracts, understanding collective agreements and seeking advice from works councils or trade unions – employees can help ensure that overtime is managed legally, fairly and in a way that protects their health.
* The editorial team behind this article strives to provide accurate and up-to-date information based on thorough research and multiple sources. Nevertheless, errors or later changes in laws and administrative practice cannot be completely ruled out. Please regard the information in this article as an initial guide only and always consult the relevant authorities or official bodies for binding and current details.
