You want to explore your strengths as a talent?

This way
Language: English

Login

Overtime in Germany – Definition, Compensation & Legal Framework

Home
-
Lexicon
-
Overtime in Germany – Definition, Compensation & Legal Framework

Overtime refers to working hours that exceed the contractually agreed regular working time. It must be compensated either through payment or time off in lieu, provided it was ordered, approved, or tolerated by the employer. The German Working Hours Act (Arbeitszeitgesetz) limits daily working time to a maximum of 10 hours – with compensation required to average 8 hours over a 6-month period.

Definition: What Is Overtime?

Overtime refers to working hours that exceed the regular working time specified in the employment contract or collective agreement. For example, if you have a 40-hour contract and work 45 hours in a week, you have worked 5 hours of overtime.

It's important to distinguish overtime from "Mehrarbeit" (additional work): While overtime refers to hours exceeding the contractually agreed working time, Mehrarbeit under the German Working Hours Act (Arbeitszeitgesetz) means exceeding the statutory maximum of 8 hours per working day. If you work 9 hours on a given day, you're working 1 hour of Mehrarbeit under the ArbZG – regardless of what your contract states.

In practice, both terms are often used interchangeably. However, for HR professionals, the distinction is relevant as stricter statutory compensation requirements apply to Mehrarbeit.

Legal Framework

Working Hours Act (ArbZG) – Maximum Working Time

The German Working Hours Act defines in Section 3 that daily working time generally may not exceed 8 hours. An extension to up to 10 hours is permitted if an average of 8 hours per working day is not exceeded within 6 calendar months or 24 weeks.

Since Saturday counts as a working day, this results in a maximum weekly working time of 48 hours. Temporarily, up to 60 hours are possible – but only with corresponding compensation. Violations can result in fines of up to €30,000 for the employer.

Compensation Entitlement Under Section 612 BGB

The German Civil Code (Bürgerliches Gesetzbuch) stipulates in Section 612 that compensation is deemed tacitly agreed if the service can only be expected against payment under the given circumstances. This means: overtime must generally be compensated – either through payment or time off in lieu.

However, the prerequisite is that the overtime was ordered, approved, or at least tolerated by the employer. If an employee works longer on their own initiative without the employer's knowledge or acceptance, there is no automatic entitlement to compensation.

Works Council Co-determination (Section 87 BetrVG)

If a works council exists in the company, it has a mandatory co-determination right regarding the ordering of overtime. According to Section 87(1) No. 3 of the Works Constitution Act (BetrVG), the works council must consent before overtime is ordered – even if it only affects individual employees.

Without this consent, the overtime order is generally invalid. HR professionals should therefore communicate with the works council early and establish clear processes for overtime approval.

Overtime in Practice

Ordering Overtime

In principle, there is no obligation to work overtime – unless this is expressly agreed in the employment contract, collective agreement, or works agreement. No unilateral authority to order overtime can be derived from the employer's general right to direct.

An exception is genuine emergencies: unforeseeable events such as natural disasters, technical failures, or comparable situations that threaten operations. Mere capacity bottlenecks or increased workload do not qualify as emergencies and do not justify an obligation to work overtime.

When ordering overtime, the employer must also exercise reasonable discretion and consider the interests of employees – such as childcare responsibilities or dependence on public transportation.

Payment or Time Off in Lieu

Compensation for overtime depends on what is agreed in the employment contract or collective agreement. There are basically two options:

Payment: Overtime is compensated at the regular hourly rate. Supplements (e.g., 25% for overtime, higher for night or weekend work) are only payable if contractually or collectively agreed.

Time off in lieu: Overtime is compensated through corresponding time off. When this compensation takes place is generally decided by the employer – employees have no right to determine the timing themselves.

If an employee falls ill during overtime compensation, the sick days are not credited. Time off in lieu is not vacation time – the risk is borne by the employee.

Calculating Overtime – With Formula

To calculate the value of an overtime hour, use the following formula:

Hourly rate = Gross salary ÷ (Weekly hours × 4.33)

Example: An employee earns €3,000 gross with a 40-hour week.

  • €3,000 ÷ (40 × 4.33) = €3,000 ÷ 173.2 = €17.32 per hour
  • For 10 overtime hours, this results in: 10 × €17.32 = €173.20 gross

With supplements, the amount increases accordingly. A 25% overtime supplement would mean an additional €4.33 per hour in the example.

Overtime Clauses in Employment Contracts

Many employment contracts contain clauses for flat-rate compensation of overtime. The following applies: not every formulation is valid.

Invalid are blanket clauses such as "Overtime is covered by the salary." These are too vague and unfairly disadvantage employees, as it is unclear how many hours are meant.

Valid are clauses that specify a concrete number, e.g., "Up to 10 overtime hours per month are covered by the salary." The Hamm Regional Labor Court ruled that for a 40-hour week, up to 10 overtime hours per month can be covered by the salary (judgment of 22.05.2012 – 19 Sa 1720/11).

As a rule of thumb: a maximum of 10% of the agreed weekly working time can be covered by flat-rate compensation. For senior executives with hiring and firing authority, more extensive flat-rate compensation is customary and legally permissible.

Overtime: Facts and Figures 2024

According to the IAB Working Time Calculation, overtime in Germany is at a historic low. In the third quarter of 2024, fewer overtime hours were worked than ever before. Employees worked an average of 13.1 paid and 15.1 unpaid overtime hours per year – a decrease compared to the previous year.

The Federal Statistical Office reports that in 2024, almost 4.4 million employees worked overtime – equivalent to about 11% of all employees. Men worked overtime more frequently at 13% than women (10%). Overtime is particularly common in the finance and insurance sector (17%) and energy supply (16%).

Nevertheless, the total volume remains significant: the overtime worked corresponds to more than 750,000 full-time positions. 71% of those affected use a working time account for compensation, while 19% work unpaid overtime.

Frequently Asked Questions About Overtime

How much overtime is allowed?

There is no specific statutory limit for overtime itself. However, the Working Hours Act limits daily working time to a maximum of 10 hours. With a 6-day week, this results in a maximum weekly working time of 60 hours – but only temporarily and with compensation to an average of 48 hours within 6 months. With a 40-hour contract, a maximum of 8 overtime hours per week is permanently possible.

Do I have to work overtime?

In principle, no – an obligation only exists if expressly agreed in the employment contract, collective agreement, or works agreement. In genuine emergencies (unforeseeable events), an obligation may arise from the duty of loyalty. Mere capacity bottlenecks or order peaks do not qualify as emergencies.

Must overtime be paid?

Yes, if it was ordered, approved, or tolerated. Compensation can be through payment or time off in lieu – depending on the contractual agreement. Without an explicit arrangement, the regular hourly rate applies according to Section 612 BGB.

Are "overtime included in salary" clauses allowed?

Blanket clauses without a specific number of hours are invalid. Formulations with a concrete number are permissible, e.g., "10 overtime hours per month are included in the salary." The guideline is: maximum 10% of the agreed working time.

When does overtime expire?

The statutory limitation period is 3 years (Section 195 BGB). However, employment contracts may contain shorter exclusion periods – these must be at least 3 months. Collective agreement forfeiture periods must also be observed. Careful documentation is important to prove entitlements.

What is the difference between overtime and Mehrarbeit?

Overtime exceeds the contractually agreed working time; Mehrarbeit exceeds the statutory maximum working time of 8 hours per day. Example: With a 40-hour contract and a 45-hour week, you have 5 hours of overtime. If you work 9 hours on one day, you have 1 hour of Mehrarbeit under the ArbZG.

Does the works council have a say in overtime?

Yes, the works council has a mandatory co-determination right under Section 87(1) No. 3 BetrVG. This also applies to overtime for individual employees. Without the works council's consent, the overtime order is invalid.

How is overtime handled upon termination?

Even upon termination, the right to compensation or time off in lieu remains. In practice, overtime is often reduced through time off before the end of the notice period. Alternatively, payment is made with the final salary statement.

Conclusion

For HR professionals, overtime is a multifaceted topic: legal requirements of the Working Hours Act, compensation issues, and works council co-determination rights must all be considered. Clear documentation of working hours protects both sides – employers from compliance risks and employees when asserting their claims.

Particularly important: flat-rate compensation clauses are only valid if they specify a concrete number of hours. The trend also shows that overtime is declining – a development that benefits work-life balance and employee satisfaction.

Looking to modernize your HR processes and seeking objective, scientifically-based solutions for your recruiting? Learn more about modern HR solutions and objective talent selection

Sources

Funnel Optimization - Inbound X Webflow Template

Make a better pre-selection — even before the first interview

In just a few minutes, Aivy shows you which candidates really fit the role. Beyond resumes based on strengths.

Mobile-optimized short tests
Insights into abilities, values & personality
Proven by 150+ HR teams
Try it for freeThat's how it works
Home
-
lexicon
-
Overtime in Germany – Definition, Compensation & Legal Framework

Overtime refers to working hours that exceed the contractually agreed regular working time. It must be compensated either through payment or time off in lieu, provided it was ordered, approved, or tolerated by the employer. The German Working Hours Act (Arbeitszeitgesetz) limits daily working time to a maximum of 10 hours – with compensation required to average 8 hours over a 6-month period.

Definition: What Is Overtime?

Overtime refers to working hours that exceed the regular working time specified in the employment contract or collective agreement. For example, if you have a 40-hour contract and work 45 hours in a week, you have worked 5 hours of overtime.

It's important to distinguish overtime from "Mehrarbeit" (additional work): While overtime refers to hours exceeding the contractually agreed working time, Mehrarbeit under the German Working Hours Act (Arbeitszeitgesetz) means exceeding the statutory maximum of 8 hours per working day. If you work 9 hours on a given day, you're working 1 hour of Mehrarbeit under the ArbZG – regardless of what your contract states.

In practice, both terms are often used interchangeably. However, for HR professionals, the distinction is relevant as stricter statutory compensation requirements apply to Mehrarbeit.

Legal Framework

Working Hours Act (ArbZG) – Maximum Working Time

The German Working Hours Act defines in Section 3 that daily working time generally may not exceed 8 hours. An extension to up to 10 hours is permitted if an average of 8 hours per working day is not exceeded within 6 calendar months or 24 weeks.

Since Saturday counts as a working day, this results in a maximum weekly working time of 48 hours. Temporarily, up to 60 hours are possible – but only with corresponding compensation. Violations can result in fines of up to €30,000 for the employer.

Compensation Entitlement Under Section 612 BGB

The German Civil Code (Bürgerliches Gesetzbuch) stipulates in Section 612 that compensation is deemed tacitly agreed if the service can only be expected against payment under the given circumstances. This means: overtime must generally be compensated – either through payment or time off in lieu.

However, the prerequisite is that the overtime was ordered, approved, or at least tolerated by the employer. If an employee works longer on their own initiative without the employer's knowledge or acceptance, there is no automatic entitlement to compensation.

Works Council Co-determination (Section 87 BetrVG)

If a works council exists in the company, it has a mandatory co-determination right regarding the ordering of overtime. According to Section 87(1) No. 3 of the Works Constitution Act (BetrVG), the works council must consent before overtime is ordered – even if it only affects individual employees.

Without this consent, the overtime order is generally invalid. HR professionals should therefore communicate with the works council early and establish clear processes for overtime approval.

Overtime in Practice

Ordering Overtime

In principle, there is no obligation to work overtime – unless this is expressly agreed in the employment contract, collective agreement, or works agreement. No unilateral authority to order overtime can be derived from the employer's general right to direct.

An exception is genuine emergencies: unforeseeable events such as natural disasters, technical failures, or comparable situations that threaten operations. Mere capacity bottlenecks or increased workload do not qualify as emergencies and do not justify an obligation to work overtime.

When ordering overtime, the employer must also exercise reasonable discretion and consider the interests of employees – such as childcare responsibilities or dependence on public transportation.

Payment or Time Off in Lieu

Compensation for overtime depends on what is agreed in the employment contract or collective agreement. There are basically two options:

Payment: Overtime is compensated at the regular hourly rate. Supplements (e.g., 25% for overtime, higher for night or weekend work) are only payable if contractually or collectively agreed.

Time off in lieu: Overtime is compensated through corresponding time off. When this compensation takes place is generally decided by the employer – employees have no right to determine the timing themselves.

If an employee falls ill during overtime compensation, the sick days are not credited. Time off in lieu is not vacation time – the risk is borne by the employee.

Calculating Overtime – With Formula

To calculate the value of an overtime hour, use the following formula:

Hourly rate = Gross salary ÷ (Weekly hours × 4.33)

Example: An employee earns €3,000 gross with a 40-hour week.

  • €3,000 ÷ (40 × 4.33) = €3,000 ÷ 173.2 = €17.32 per hour
  • For 10 overtime hours, this results in: 10 × €17.32 = €173.20 gross

With supplements, the amount increases accordingly. A 25% overtime supplement would mean an additional €4.33 per hour in the example.

Overtime Clauses in Employment Contracts

Many employment contracts contain clauses for flat-rate compensation of overtime. The following applies: not every formulation is valid.

Invalid are blanket clauses such as "Overtime is covered by the salary." These are too vague and unfairly disadvantage employees, as it is unclear how many hours are meant.

Valid are clauses that specify a concrete number, e.g., "Up to 10 overtime hours per month are covered by the salary." The Hamm Regional Labor Court ruled that for a 40-hour week, up to 10 overtime hours per month can be covered by the salary (judgment of 22.05.2012 – 19 Sa 1720/11).

As a rule of thumb: a maximum of 10% of the agreed weekly working time can be covered by flat-rate compensation. For senior executives with hiring and firing authority, more extensive flat-rate compensation is customary and legally permissible.

Overtime: Facts and Figures 2024

According to the IAB Working Time Calculation, overtime in Germany is at a historic low. In the third quarter of 2024, fewer overtime hours were worked than ever before. Employees worked an average of 13.1 paid and 15.1 unpaid overtime hours per year – a decrease compared to the previous year.

The Federal Statistical Office reports that in 2024, almost 4.4 million employees worked overtime – equivalent to about 11% of all employees. Men worked overtime more frequently at 13% than women (10%). Overtime is particularly common in the finance and insurance sector (17%) and energy supply (16%).

Nevertheless, the total volume remains significant: the overtime worked corresponds to more than 750,000 full-time positions. 71% of those affected use a working time account for compensation, while 19% work unpaid overtime.

Frequently Asked Questions About Overtime

How much overtime is allowed?

There is no specific statutory limit for overtime itself. However, the Working Hours Act limits daily working time to a maximum of 10 hours. With a 6-day week, this results in a maximum weekly working time of 60 hours – but only temporarily and with compensation to an average of 48 hours within 6 months. With a 40-hour contract, a maximum of 8 overtime hours per week is permanently possible.

Do I have to work overtime?

In principle, no – an obligation only exists if expressly agreed in the employment contract, collective agreement, or works agreement. In genuine emergencies (unforeseeable events), an obligation may arise from the duty of loyalty. Mere capacity bottlenecks or order peaks do not qualify as emergencies.

Must overtime be paid?

Yes, if it was ordered, approved, or tolerated. Compensation can be through payment or time off in lieu – depending on the contractual agreement. Without an explicit arrangement, the regular hourly rate applies according to Section 612 BGB.

Are "overtime included in salary" clauses allowed?

Blanket clauses without a specific number of hours are invalid. Formulations with a concrete number are permissible, e.g., "10 overtime hours per month are included in the salary." The guideline is: maximum 10% of the agreed working time.

When does overtime expire?

The statutory limitation period is 3 years (Section 195 BGB). However, employment contracts may contain shorter exclusion periods – these must be at least 3 months. Collective agreement forfeiture periods must also be observed. Careful documentation is important to prove entitlements.

What is the difference between overtime and Mehrarbeit?

Overtime exceeds the contractually agreed working time; Mehrarbeit exceeds the statutory maximum working time of 8 hours per day. Example: With a 40-hour contract and a 45-hour week, you have 5 hours of overtime. If you work 9 hours on one day, you have 1 hour of Mehrarbeit under the ArbZG.

Does the works council have a say in overtime?

Yes, the works council has a mandatory co-determination right under Section 87(1) No. 3 BetrVG. This also applies to overtime for individual employees. Without the works council's consent, the overtime order is invalid.

How is overtime handled upon termination?

Even upon termination, the right to compensation or time off in lieu remains. In practice, overtime is often reduced through time off before the end of the notice period. Alternatively, payment is made with the final salary statement.

Conclusion

For HR professionals, overtime is a multifaceted topic: legal requirements of the Working Hours Act, compensation issues, and works council co-determination rights must all be considered. Clear documentation of working hours protects both sides – employers from compliance risks and employees when asserting their claims.

Particularly important: flat-rate compensation clauses are only valid if they specify a concrete number of hours. The trend also shows that overtime is declining – a development that benefits work-life balance and employee satisfaction.

Looking to modernize your HR processes and seeking objective, scientifically-based solutions for your recruiting? Learn more about modern HR solutions and objective talent selection

Sources

Heading 1

Heading 2

Heading 3

Heading 4

Heading 5
Heading 6

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut laboratories et dolore magna aliqua. Ut Enim ad Minim Veniam, Quis Nostrud Exercitation Ullamco Laboris Nisi ut Aliquip ex ea Commodo Consequat. Duis aute irure dolor in reprehenderite in voluptate velit eat cillum dolore eu fugiate nulla pariature.

Block quote

Ordered list

  1. Item 1
  2. Item 2
  3. Item 3

Unordered list

  • Item A
  • Item B
  • Item C

Text link

Bold text

Emphasis

Superscript

Subscript

Heading 1

Heading 2

Heading 3

Heading 4

Heading 5
Heading 6

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut laboratories et dolore magna aliqua. Ut Enim ad Minim Veniam, Quis Nostrud Exercitation Ullamco Laboris Nisi ut Aliquip ex ea Commodo Consequat. Duis aute irure dolor in reprehenderite in voluptate velit eat cillum dolore eu fugiate nulla pariature.

Block quote

Ordered list

  1. Item 1
  2. Item 2
  3. Item 3

Unordered list

  • Item A
  • Item B
  • Item C

Text link

Bold text

Emphasis

Superscript

Subscript

Florian Dyballa

CEO, Co-Founder

About Florian

  • Founder & CEO of Aivy — develops innovative ways of personnel diagnostics and is one of the top 10 HR tech founders in Germany (business punk)
  • More than 500,000 digital aptitude tests successfully used by more than 100 companies such as Lufthansa, Würth and Hermes
  • Three times honored with the HR Innovation Award and regularly featured in leading business media (WirtschaftsWoche, Handelsblatt and FAZ)
  • As a business psychologist and digital expert, combines well-founded tests with AI for fair opportunities in personnel selection
  • Shares expertise as a sought-after thought leader in the HR tech industry — in podcasts, media, and at key industry events
  • Actively shapes the future of the working world — by combining science and technology for better and fairer personnel decisions

How OMR is establishing a digital recruiting standard with Aivy that brings clarity faster — and sustainably reduces incorrect judgments

Read the success story
success stories

You can expect these results

Discover what successes other companies are achieving by using Aivy. Be inspired and do the same as they do.

Get in touchAll success stories
Many innovative employers already rely on Aivy

Say that #HeRoes

“Through the very high response rate Persuade and retain We our trainees early in the application process. ”

Tamara Molitor
Training manager at Würth
Tamara Molitor

“That Strengths profile reflects 1:1 our experience in a personal conversation. ”

Wolfgang Böhm
‍Training manager at DIEHL
Wolfgang Böhm Portrait

“Through objective criteria, we promote equal opportunities and Diversity in recruiting. ”

Marie-Jo Goldmann
Head of HR at Nucao
Marie Jo Goldmann Portrait

”Aivy is the bestWhat I've come across so far in the German diagnostics start-up sector. ”

Carl-Christoph Fellinger
Strategic Talent Acquisition at Beiersdorf
Christoph Feillinger Portrait

“Selection process which Make fun. ”

Anna Miels
Learning & Development Manager at apoproject
Anna Miels Portrait

“Applicants find out for which position they have the suitable competencies bring along. ”

Jürgen Muthig
Head of Vocational Training at Fresenius
Jürgen Muthig Fresenius Portrait

“Get to know hidden potential and Develop applicants in a targeted manner. ”

Christian Schütz
HR manager at KU64
Christian Schuetz

”Saves time and is a lot of fun doing daily work. ”

Matthias Kühne
Director People & Culture at MCI Germany
Matthias Kühne

”Engaging candidate experience through communication on equal terms. ”

Theresa Schröder
Head of HR at Horn & Bauer
Theresa Schröder

“Very solid, scientifically based, innovative even from a candidate's point of view and All in all, simply well thought-out. ”

Dr. Kevin-Lim Jungbauer
Recruiting and HR Diagnostics Expert at Beiersdorf
Kevin Jungbauer
YOUR assistant FOR TALENT ASSESSMENT

Try it for free

Become a HeRo 🦸 and understand candidate fit - even before the first job interview...

Try it yourselfBook a consultation