Germany’s highest labor court has handed down a significant ruling: mandatory pre-study internships are not subject to the national minimum wage, even when they take place before the student officially begins their degree program. The decision, issued by the Bundesarbeitsgericht (BAG), clarifies a grey area that had left both universities and employers uncertain. The court reasoned that because the internship is a compulsory prerequisite for admission or continuation of studies, it falls outside the scope of wage protections intended for regular employment.
That legal clarity arrives at a time when the country’s broader labor framework is being reshuffled. A government draft reform of the Working Time Act (Arbeitszeitgesetz) is drawing sharp criticism from business associations including the BGA and BDA, which are calling for revisions or a full withdrawal. The central flashpoint: flexible working-time models that allow a shift from daily to weekly maximum hours would be tied exclusively to collective bargaining agreements. Small and medium-sized enterprises without union contracts would effectively be locked out of that flexibility, according to the Family Businesses association (Familienunternehmer). The draft also mandates electronic time tracking for all employees, which critics say adds a heavy bureaucratic burden and threatens trust-based working time models.
The bakery trade association (Zentralverband des Bäckerhandwerks) adds its own grievance. While it welcomes a proposed extension of permitted Sunday and holiday work from three to five hours, it argues that limiting the exception to goods intended for same-day sale ignores the reality of multi-day dough production. The association demands full equal treatment with other sectors.
Separately, the rules for mini-jobs—low-paid positions capped at €603 per month in 2026—are set to change in mid-2026. From July 1, 2026, workers who previously chose to opt out of compulsory pension insurance will get a one-time chance to reverse that decision. The opt-out was previously irreversible for the duration of the job. The reversal must be requested in writing to the employer and applies only going forward; there is no retroactive effect. For 2027, the earnings threshold rises to €633. A worker earning the full mini-job limit as a commercial employee pays about €21.70 per month out of pocket into the pension system (in private households, the rate is 13.6 percent). Retirees, meanwhile, already benefited from a change this January: the supplementary earnings limit for side jobs was abolished entirely.
These reforms are unfolding against the backdrop of active labor unrest. In mid-June, employees at 31 Ikea stores in Berlin and Brandenburg walked off the job in warning strikes. The union ver.di is demanding a 7 percent pay increase, with a minimum monthly raise of €222 to €225, plus a minimum hourly wage of €14.90. The national statutory minimum wage sits at €13.90 in 2026. Employers have countered with offers of 2 percent more effective late 2026 and an additional 1.5 percent in late summer 2027—a package ver.di dismisses as inadequate, saying it would perpetuate real-wage losses.
