Changes in Germany: Wage Adjustments, Maternity Protections, and Upcoming EU AI Act Provisions

Employers in Germany are facing new compliance duties in 2026, due to adjustments in minimum wages and benefits assessment ceilings, as well as other employment law developments. Additionally, the phased rollout of the EU Artificial Intelligence Act in Germany will bring the act’s core obligations for high-risk artificial intelligence into force in August 2026.

Adjustments in the minimum wage, contribution assessment ceilings, and earnings thresholds

At the beginning of 2026, the minimum wage increased to €13.90 EUR per hour, and the mini-job earnings threshold was raised to €603 EUR per month based on the new minimum wage.

Several key thresholds have also been adjusted.

• The contribution assessment ceiling for health and long-term care insurance was adjusted to €5,812.50 EUR monthly / €69,750 EUR annually.
• The annual earnings threshold (Jahresarbeitsentgeltgrenze or JAEG) for statutory health insurance was changed to €6,450 EUR monthly / €77,400 EUR annually.
• The contribution assessment ceiling for pension insurance was adjusted to €8,450 EUR monthly / €101,400 EUR annually.

What does the Maternity Protection Amendment Act change?

Mothers in Germany who suffer miscarriages received additional protections in 2025 under the Maternity Protection Amendment Act (Mutterschutzgesetz – MuSchG). Graduated protection periods apply following miscarriages from the thirteenth week of pregnancy. The existing four-month protection against dismissal after a miscarriage following the twelfth week of pregnancy remains unchanged. While affected employees can choose to work during these periods of protection, they can revoke this decision at any time.

Fixed-term employment for pensioners

Other developments for the year include changes in rules regarding fixed-term employment for pensioners, which eliminates the prohibition on prior employment by the same employer for the execution of fixed-term contracts. This change is accompanied by financial incentives for retirees, who can earn up to €2,000 EUR per month tax-free.

When do EU AI Act core obligations take effect for German employers?

Germany is implementing the EU AI Act (Regulation (EU) 2024/1689) through its AI Market Surveillance and Innovation Promotion Act (KI-Marktüberwachungs- und Innovationsförderungs-Gesetz – KI-MIG). The phased introduction has brought prohibitions on impermissible practices, governance, and sanctions and penalties into force. Core obligations for high-risk artificial intelligence will take effect on August 2, 2026.

As many HR leaders know, candidate pre-screening methods, ranking tools, and performance analytics are impacted by the act. Employers must incorporate traceable documentation and transparency; fundamental rights impact assessments for high-risk systems; data protection impact assessments that comply with the General Data Protection Regulation (GDPR); and effective human oversight and training, among other things. They must also respect works council participation and information rights.

Sources: Ogletree Deakins, Computerworld