Germany · ArbZG / BGB

Overtime in Germany

When is overtime paid, when can it be taken as time off, and is there a legal premium? A plain-English guide to Überstunden for expats, international employees and HR teams in Germany.

Overtime (Überstunden) vs. Mehrarbeit

The two terms are often used interchangeably but mean different things. Overtime (Überstunden) is exceeding your contractually agreed hours — a 20-hour part-timer who works 25 hours has done 5 overtime hours. Mehrarbeit is a public-law concept: exceeding the statutory maximum under § 3 ArbZG (8 hours per working day, extendable to 10 with averaging). Overtime is a contract matter; breaching the statutory limits is an offence the employer can be fined for.

Pay or time off in lieu?

Whether overtime is paid out or taken as time off (Freizeitausgleich) depends on your contract, collective agreement or works agreement. If nothing is regulated, § 612 BGB implies a right to payment where the work could only reasonably be expected against pay. For senior staff paid above the contribution ceiling, courts often deny a separate overtime claim. Time off in lieu is tax-neutral, which frequently makes it the more attractive option.

"Overtime is included in the salary" — is that legal?

Clauses stating that all overtime is covered by the monthly salary are, in standard contracts, almost always invalid for breaching the transparency requirement (§ 307 (1) BGB): an employee cannot tell how much unpaid work they are agreeing to. Such a clause is only valid if it names a concrete cap — for example, "up to 10 overtime hours per month are covered" — or applies to genuine executives.

Working out the value

Hourly rate = monthly gross ÷ (weekly hours × 4.35)

Example: €3,480 gross on a 40-hour week gives €3,480 ÷ 174 = €20/hour. Fifteen overtime hours are worth 15 × €20 = €300 gross, before any contractual premium (often 25% for weekday overtime, 50% for Sundays or public holidays).

Working time in Germany

German working hours calculator→ Break rules in Germany (§ 4 ArbZG)→ German public holidays→ Überstunden berechnen (auf Deutsch)→

Frequently asked questions

No. German law sets no statutory overtime bonus for ordinary overtime. Any premium (often 25% or 50%) comes from a collective agreement (Tarifvertrag), a works agreement, or the individual employment contract — not from the Working Time Act.
Überstunden (overtime) means exceeding your contractually agreed hours. Mehrarbeit is a public-law term: exceeding the statutory maximum working time under the ArbZG (generally 8 hours per working day). Overtime is a contract matter; exceeding the statutory limits without compensation is an offence for the employer.
It depends on the contract, collective agreement or works agreement. If nothing is regulated, § 612 of the Civil Code (BGB) implies that pay is owed where the work could only reasonably be expected against payment. Time off in lieu (Freizeitausgleich) is a common alternative and is tax-neutral.
Blanket clauses are usually invalid in standard contracts because they breach the transparency requirement (§ 307 BGB). A clause is only valid if it names a concrete cap (e.g. "up to 10 overtime hours per month"), or for genuine senior staff above the social-insurance contribution ceiling.
Find your hourly rate first: monthly gross ÷ (weekly hours × 4.35). For example, €3,480 ÷ (40 × 4.35) = €20/hour. Fifteen overtime hours are then worth 15 × €20 = €300 gross, before any contractual premium.
Paid overtime is treated as ordinary salary: it raises your gross income for that month and is subject to normal income tax and social contributions, which can push you into a higher marginal rate. Time off in lieu, by contrast, is tax-neutral.

Note: This calculator and its content offer general guidance based on the assumptions given and do not constitute legal advice. The applicable statute, collective agreement and employment contract prevail.