In many first jobs, overtime is part of everyday life, sometimes during project phases, sometimes at peak times. New employees quickly wonder whether extra hours are paid, whether there is a surcharge and whether that surcharge is tax-free. The answers depend on your contract, any collective agreement and the type of hours worked. This guide sorts the questions and explains what German employment and tax law says.
In short: Overtime is paid as your contract or collective agreement provides. Germany has no general statutory overtime surcharge. Under section 3b of the German Income Tax Act (EStG), only surcharges for night, Sunday and public holiday work are tax-free, and only up to the statutory maximum rates. Last updated: October 2026.
The most important points in brief
- There is no general statutory overtime surcharge. The amount and compensation are set in the contract or a collective agreement.
- Under section 3b EStG, only surcharges for night, Sunday and public holiday work are tax-free.
- Regular overtime without such a surcharge is taxable, like the rest of your salary.
- If extra hours are agreed, the written statement must say whether and under which conditions overtime can be ordered.
- The statutory minimum wage has been 13.90 euros gross per hour since 1 January 2026.
What the contract should say about overtime
Ideally, the contract answers two questions: may your employer order overtime, and how is it compensated? Under the German Evidence of Employment Terms Act (Nachweisgesetz), the pay, including overtime pay and surcharges, and overtime itself are mandatory items in the written statement. If these details are missing, ask before you sign.
- Payment: Hours are paid with your salary or separately, often at an hourly rate.
- Time off in lieu: You receive the hours back as free time. Check by when the time off must be taken.
- Overtime account: Extra hours are collected. Watch for caps and deadlines after which hours may lapse.
- Flat-rate arrangement: Extra hours are included in your salary. Ask how many hours are covered.
Tax: which surcharges are exempt
Under section 3b para. 1 EStG, surcharges for Sunday, public holiday and night work are tax-free up to fixed percentages. For the calculation, the basic hourly wage is capped at 50 euros per hour (section 3b para. 2 EStG). The table shows the statutory maximum rates.
| Type of hours | Surcharge (maximum) | Tax-free under section 3b EStG? |
|---|---|---|
| Night work (8 pm to 6 am) | 25 percent | Yes, up to 25 percent |
| Night work from 0 to 4 am, if it began before midnight | 40 percent | Yes, up to 40 percent |
| Sunday work (0 to 24 hours) | 50 percent | Yes, up to 50 percent |
| Work on public holidays and on 31 December from 2 pm | 125 percent | Yes, up to 125 percent |
| 24 December from 2 pm, 25 and 26 December, 1 May | 150 percent | Yes, up to 150 percent |
| Regular overtime without a surcharge ground | no surcharge under section 3b | No, taxable |
Important: the provision does not mention overtime. A surcharge for extra hours on an ordinary working day, without any night, Sunday or holiday element, does not fall under section 3b. It is therefore taxable, even if the contract calls it a surcharge.
Worked example: one week with different hours
Assumption: Your gross hourly wage is 20 euros. On Monday you work two overtime hours without a surcharge. On an evening you work two hours of night work between 10 pm and midnight with a 25 percent surcharge. On Sunday you work three hours with a 50 percent surcharge.
| Item | Calculation | Gross amount | Tax treatment |
|---|---|---|---|
| Monday, overtime without surcharge | 2 x 20 euros | 40.00 euros | Taxable |
| Night work, surcharge | 2 x 20 euros x 25 percent | 10.00 euros | Surcharge tax-free |
| Sunday, basic pay | 3 x 20 euros | 60.00 euros | Taxable |
| Sunday, surcharge | 3 x 20 euros x 50 percent | 30.00 euros | Surcharge tax-free |
| Tax-free surcharges in total | 10.00 euros + 30.00 euros | 40.00 euros | Exempt under section 3b |
The wage tax on the taxable remainder depends on your tax class and total pay, so this guide does not calculate it. The tax calculator of the German Federal Ministry of Finance is designed for that.
How to record your hours
If you work overtime, write it down. This helps with payroll, with time off in lieu and if a dispute arises later. A simple list is enough.
- Note the date, start, end and breaks of every extra period.
- Record whether the time was ordered or arose on your own initiative.
- Have time off in lieu confirmed in writing, with the date and number of hours.
- Compare the monthly payslip with your notes and report differences at once.
Typical situations in a first job
In the first job, overtime often arises for three reasons. First, project phases with deadlines, when a team has to deliver more at short notice. Second, fixed dates such as closing, payroll or client meetings that cannot be moved. Third, the first year usually includes onboarding, and many tasks take longer than planned.
It is worth raising overtime early. If you notice that extra hours arise regularly, clarify with your manager whether tasks can be redistributed or whether time off is agreed. A calm conversation with concrete figures from your own list works better than a complaint after the fact.
Frequently asked questions
Am I required to work overtime?
That depends on your contract. If extra hours are agreed, the written statement says whether and under which conditions they can be ordered. If nothing is regulated, ask HR before you commit.
Is overtime tax-free?
Not in general. Pay for overtime is taxable like any other salary. Only surcharges for night, Sunday and public holiday work are exempt, within the limits of section 3b EStG. Your payslip should show surcharges separately so that you can check them.
How high is the overtime surcharge?
There is no general statutory rate. The amount is set in the employment contract or a collective agreement. Without an agreement, a surcharge for ordinary overtime cannot simply be claimed.
Does the minimum wage apply when I work many extra hours?
Yes. Since 1 January 2026 the statutory minimum wage is 13.90 euros gross per hour. For flat-rate salaries, the total pay is divided by the hours actually worked to check whether the minimum wage is met. Many hours at an unchanged salary can fall below this limit.
What to do now
- Check your contract and the written statement for overtime rules.
- Ask how extra hours are compensated and confirm the answer in writing.
- Keep your own list with date, start, end and breaks.
- Check the payslip every month for surcharges and hours.
- Report discrepancies promptly and in writing.
Related guides (in German)
- Erster Arbeitsvertrag: Klauseln, die du prüfen solltest
- Erste Gehaltsabrechnung verstehen
- Nettogehalt 2026 als Berufseinsteiger
- Steuerklasse beim Berufseinstieg
- Berufseinstieg nach dem Studium (in German)
Sources: Nachweisgesetz, section 2 (German law, accessed October 2026), Section 3b EStG, tax-free surcharges (German law, accessed October 2026), Federal Ministry of Labour and Social Affairs, Fifth Minimum Wage Ordinance (2026).
Last updated: October 2026. This guide is general information, not individual advice.
