Offsetting of benefits against the statutory minimum wage with fulfillment effect BAG 25.05.2016 - 9 AZR 145/15

The new law regulating a general minimum wage (MiLoG) has often led to disputes as to whether various remuneration components can be offset against pay in order to reach the minimum wage of EUR 8.50 per hour.

The legal dispute recently decided by the Federal Labor Court in Erfurt concerned special payments which the plaintiff's employer no longer made annually, but now monthly in proportion to the basic salary in order to comply with the statutory minimum wage of EUR 8.50 per hour.

The plaintiff employee was of the opinion that the special payments in question should be paid in addition to an hourly wage of EUR 8.50. The plaintiff also objected to the calculation of bonuses for overtime, Sunday and night work. In her opinion, the calculation basis here should also be the minimum wage.

The labor court dismissed the claim. The LAG awarded the plaintiff a gross night work bonus of EUR 0.80, but otherwise dismissed the appeal.

The BAG ruled that the plaintiff was not entitled to an increased monthly salary, increased wage supplements or increased annual bonuses as a result of the MiLoG. Although the statutory minimum wage entitlement is a separate entitlement in addition to the previous basis for entitlement, it does not replace it. If the employer pays 1/12 of the annual special payment unconditionally and irrevocably in each calendar month, the minimum wage entitlement, which is calculated according to the hours actually worked, is fulfilled. However, this only applies to those remuneration components that represent consideration for the work performed. The plaintiff therefore had to accept the deduction of vacation and Christmas bonuses as well as bonuses for overtime and sunshine. Only the night bonus was not to be taken into account.

Date: 25. May 2016