Why does the night shift premium exist in the first place?
Working at night is a strain that can cause physical and mental harm to employees. Night work runs against our natural biorhythm and also severely restricts our social life.
While day workers can give their bodies the rest they are used to at night, people doing night work have to stay awake when it is already dark and possibly carry out physical work on top. They also have to give up time with family and friends or hobbies that take place at the usual times, that is during the day, when they have to catch up on sleep then.
Is the night shift premium mandatory?
In legal terms, employees working nights must receive appropriate compensation under Section 6(5) of the German Working Hours Act (Arbeitszeitgesetz, ArbZG). Whether this compensation takes the form of a night shift premium, that is raising the hourly wage by a certain percentage, or of an appropriate number of paid days off is not prescribed and can be negotiated individually between employer and employee. These rules only apply, however, where no compensation arrangement already exists in the employment relationship concerned through a collective agreement.
A night shift premium is due when work is carried out between 11 p.m. and 6 a.m. and the activity lasts more than two hours.
In bakeries and confectioneries a special period of 10 p.m. to 5 a.m. applies.
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Who is entitled to the night shift premium?
In principle, only night workers are entitled to the night shift premium. Employees count as night workers if they regularly work between 11 p.m. and 6 a.m. - at least 48 days a year or in alternating shifts (that is, partly within night working hours and partly outside them).
In addition, at least two hours of the work must fall within night-time hours. With less than two hours there is no entitlement to a night shift premium.
Incidentally, breastfeeding women, pregnant women and young people under 18 are not allowed to work between 8 p.m. and 6 a.m. and therefore never have an entitlement to night work.
Anyone who regularly plans night shifts knows: coordinating alternating shifts takes time. With digital shift planning you keep track of who is working when – and which night work limits have to be observed. More about clockin shift planning →
How high are the premiums for night work?
The exact level of the night shift premium is not set out in law. The law only says the premium must be “appropriate” and be based on the employee's gross hourly wage . Even so, the employer cannot simply pick a percentage. In December 2015 the Federal Labour Court ruled that “appropriate” should be interpreted as a percentage of around 25 percent.
The level of the premium can be reduced, though, where the workload during night-time hours is noticeably lower. Examples here are working hours on standby duty or during work readiness.
Night shift premium in a Minijob – is there an entitlement?
If an employee in a Minijob meets the conditions above, that is works at least 48 days a year for more than two hours between 11 p.m. and 6 a.m., they are also entitled to the night shift premium. The premium is additionally counted towards the €538 threshold.
How is the night shift premium taxed?
In principle the night shift premium stays tax-free. But there are a few exceptions, …
- … if it is more than 25% for the hours between 11 p.m. and midnight and between 4 a.m. and 6 a.m.
- … if it is more than 40% for the hours between midnight and 4 a.m.
- … if the basic wage is above €50 per hour.
In these three cases, however, only the difference has to be taxed. So if a night worker earns €55 an hour, for example, only the night shift premium on the additional €5 has to be taxed.
Social security contributions are a different matter. With an hourly wage of up to €25, no social security contributions have to be paid on the night shift premium. If night work falls on a Sunday or public holiday, the time worked from midnight (or before midnight) counts as Sunday and public holiday work and is assessed differently accordingly. You can find out more here.
In 2025 the subject of tax-free premiums was reopened by the discussion around tax-free overtime. The new government now also wants to make premiums for overtime tax-free, in the same way as night shift premiums.
Track night work more easily with digital tools
If all of that has given you a headache, we have good news for you: with clockin you do not have to worry about all this calculating.
With shift planning you schedule night shifts so that rest periods and statutory limits are taken into account from the outset – and your team always knows when they are on. And once the shift is running, the app for digital time tracking and project documentation records night work separately: clockin automatically calculates hours that fall into night work as such and takes that job off your hands later. No more separate calculations with annoying timesheets. Instead, you simply state in a few clicks what counts as night work.
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