Minimum Wage Act

The law regulating a general minimum wage, the Minimum Wage Act (MiLoG), was passed on August 11, 2014. It introduced the general minimum wage on January 1, 2015, and regulates how the nationwide statutory minimum wage is determined and enforced, as well as which groups of people are exempt from the minimum wage.

Determination of the minimum wage

The Minimum Wage Act stipulates that the Minimum Wage Commission must decide every two years on an adjustment to the statutory minimum wage and justify its decision in writing.

Controls and sanctions

The Act contains provisions on the monitoring of compliance with the minimum wage by the customs authorities and provides for sanctions such as fines.

Documentation requirements

Employers of marginally employed workers (part-time without social insurance, known as mini-jobbers) and in certain sectors, for example in the hospitality industry, are required to document the working hours of their employees to ensure compliance with the statutory minimum wage. This is also stipulated in the Minimum Wage Act.

Exceptions

Young people under the age of 18 who have not completed vocational training and trainees in vocational training are exempt from the minimum wage. Employees who have been unemployed for more than one year prior to starting employment are also exempt for the first six months of employment. The statutory minimum wage does not apply to voluntary work either.

In principle, interns are entitled to the minimum wage. Exceptions include compulsory internships as part of school, training, or studies, voluntary internships accompanying training or studies lasting up to three months, and orientation internships lasting up to three months.