German workers' rights when wages are delayed

salary delay German labor law §614 BGB default interest employee rights

Under German law employers must pay salaries by the first day of the following month, as stipulated in § 614 of the BGB. Employers may set earlier payment dates in contracts, collective agreements or works council agreements, often the 15th or 20th of the month.

If an employer misses the agreed date, the employee is automatically in default and is entitled to statutory default interest without a reminder. The employee can also claim compensation for damages such as returned‑payment fees or late‑payment penalties. Legal action against the employer is possible, but experts advise filing a claim only when the employment relationship is ending. Employees are generally advised not to continue working for more than three months without pay, as prolonged work without salary can jeopardise the ability to recover claims if the employer later becomes insolvent.

The works council also has a co‑determination right under § 87 of the Works Constitution Act regarding the timing of wage payments.