Overview

• The incoming coalition plans to eliminate the daily 8-hour work limit, introducing a weekly cap of 48 hours in line with EU guidelines.
• Employers would gain flexibility to schedule longer daily shifts, potentially allowing compressed workweeks or extended hours during peak periods.
• Overtime pay beyond full-time hours would become tax-free under the proposal, aiming to incentivize additional work.
• Unions, led by DGB chair Yasmin Fahimi, caution against risks of overwork, citing concerns over 13-hour shifts becoming normalized and increased health hazards.
• The reform coincides with declining collective bargaining coverage and record-high social contribution costs, as Germany's workforce faces demographic and economic pressures.