The year 2025 will bring numerous changes to payroll accounting that will affect both employers and employees. In addition to an adjustment to minimum wages and training allowances, tax allowances, contribution assessment limits and non-cash benefits have also been updated. Here you can find out all the important details so that you are well informed and can implement the changes correctly.
Increase in the minimum wage
The statutory minimum wage will increase from January 1, 2025 from 12.41 € to 12.82 € per hour.
Tip for employersCheck whether existing employment contracts and time sheets need to be adjusted accordingly. With regular working hours of 40 hours per week, this corresponds to a gross monthly wage of around € 2,219.68.
This adjustment is intended to strengthen purchasing power and has a direct impact on the cost structure of companies.
Minimum remuneration for trainees
The statutory minimum remuneration for trainees has also been increased and will apply as follows from 2025:
- Training year: 682 €
- Training year: 805 €
- Training year: 921 €
- Training year: 955 €
The increase in remuneration promotes the attractiveness of training occupations and is in line with general wage growth. It is also worth considering voluntary additional benefits in order to retain qualified junior staff in the long term.
Increase in mini-job and midi-job limits
Mini job: The maximum earnings limit is raised from 538 € to 556 € increased. This means that marginally employed persons can now earn a little more without having to pay social security contributions.
Midijob: The income range for midijobs has been reduced to 556.01 € to 2,000 € (previously up to € 1,960).
This change creates greater flexibility for employees who are in the transitional area between mini-jobs and employment subject to social security contributions. Employers benefit from reduced social security costs in this area.
Do you have any questions on this topic?
Increase in the tax-free allowance
The basic tax-free allowance for 2025 was set at 12.096 € which provides employees with more tax-free income.
Special feature for 2024: In December 2024, the basic tax-free allowance was retroactively increased from 11,604 € to 11,784 € increased. This led to corrections in payroll accounting, which may have triggered queries. It is important to note that these changes were required by law and do not constitute errors.
This adjustment is part of the general relief for taxpayers and supports low-income earners in particular.
Non-cash remuneration values 2025
The new non-cash benefits for meals and accommodation are as follows:
breakfast2,30 € / month: 69 €
Lunch/dinner4,40 € / month: 132 €
Total meals per month: 333 €
Daily value for meals: 11,10 €
Accommodation values:
Staff apartment for 1 person: 282 €
Staff apartment for 2 persons: 169,20 €
These values are important for the calculation of non-cash benefits and should be correctly taken into account in payroll accounting. Employers can use these benefits in kind specifically to grant employees additional benefits that are exempt from tax and social security contributions.
Contribution assessment limits 2025
The contribution assessment thresholds (BMG) in social insurance have been adjusted as follows for 2025
Health and long-term care insurance:
Monthly: 5.512,50 €
Annually: 66.150 €
(Previously: € 5,175 per month / € 62,100 per year)
Pension insurance:
Monthly: 8.050 €
Annually: 96.600 €
(Previously: € 7,550 per month / € 90,600 per year)
These changes primarily affect higher incomes and influence the contribution burden for both employers and employees.
Extended retrieval of the electronic certificate of incapacity for work (eAU)
A further advance concerns the retrieval of the electronic certificate of incapacity for work (eAU). The following additional data is now available to employers:
Periods of inpatient rehabilitation and preventive measures
Partial inpatient hospitalization
AU times abroad
Periods of sick leave for privately insured employees
This innovation simplifies administration and increases the transparency of periods of incapacity for work. In particular, access to periods of sick leave abroad and for employees with private insurance is a valuable addition.
Conclusion
The changes to payroll accounting from 2025 are extensive and affect many aspects, from minimum wages to tax allowances and social security limits. It is crucial to implement these changes at an early stage in order to comply with legal and tax requirements. Employers should also inform their employees about the changes in order to clarify any queries and create transparency.
The author: Sven Sistig
Sven Sistig has been working in national and international tax law for 12 years, with a focus on VAT advice and support for start-ups, (online) retailers and influencers. After holding positions at Deloitte and Flick Gocke Schaumburg, he most recently headed the tax department at ABOUT YOU.
