Temporary agency work is a common part of Germany’s labour market.
International workers may encounter agency employment in sectors such as:
- Logistics
- Warehousing
- Production
- Manufacturing
- Packaging
- Hospitality
- Cleaning
- Automotive supply
- Industrial support
Agency employment can provide a route into the German labour market, but workers must understand who employs them, where they will work and how their wages are calculated.
From 1 July 2026, Germany introduced a new binding wage floor for temporary agency workers.
What is temporary agency work?
Temporary agency work is known in German as:
- Leiharbeit
- Zeitarbeit
- Arbeitnehmerüberlassung
In this arrangement, the employee signs an employment contract with an agency or staffing company.
The agency then assigns the employee to work temporarily at another business.
The Federal Employment Agency describes Arbeitnehmerüberlassung as an arrangement in which an employee works for a limited period in another company while remaining employed by the original employer. The agency is generally required to hold the appropriate permission for this activity.
This means that two companies may be involved:
- The company that legally employs and pays the worker
- The company where the worker performs the actual assignment
Understanding this distinction is essential before accepting the offer.
What is the new wage floor?
Germany’s Federal Ministry of Labour and Social Affairs states that the Seventh Ordinance on a Wage Floor in Temporary Agency Work entered into force on 1 July 2026.
It establishes the following gross minimum hourly rates:
- €14.96 gross per hour from 1 July 2026
- €15.33 gross per hour from 1 September 2026 to 31 March 2027
- €15.87 gross per hour from 1 April 2027 to 30 September 2027
The ordinance remains valid until 30 September 2027.
These amounts are hourly gross wages, not monthly salaries and not take-home pay.
Who is covered by the wage floor?
The wage floor is binding for temporary agency workers employed in Germany.
According to the ministry, it also covers workers posted to Germany by employers in the temporary-employment sector that are based outside Germany.
The protection is therefore relevant not only to German citizens or people recruited locally. International workers assigned to Germany through foreign-sector employers may also fall within its scope.
The individual employment structure must nevertheless be checked carefully.
The wage floor is not necessarily your final salary
The stated amount is a minimum floor.
A worker may be entitled to more because of:
- A higher contractual wage
- Occupational qualifications
- Work experience
- Shift or night-work supplements
- Overtime payments
- Industry-specific supplements
- Collective-agreement provisions
- A higher pay classification
- Assignment-specific conditions
An employer should not present the statutory floor as the highest wage that can be paid.
Candidates should compare the proposed wage with the job, location, shift system, required skills and local cost of living.
Understand the important German terms
Several German words may appear in an agency-work contract.
Leiharbeitnehmer
The Leiharbeitnehmer is the temporary agency worker.
Verleiher
The Verleiher is the agency or company that employs the worker and assigns them to another company.
Entleiher
The Entleiher is the client company receiving and using the worker’s labour.
Einsatzbetrieb
The Einsatzbetrieb is the company or workplace where the employee actually performs the assignment.
Arbeitnehmerüberlassungsvertrag
This is the agreement between the agency and the client company. It is different from the employment contract signed by the worker.
Arbeitsvertrag
The Arbeitsvertrag is the worker’s employment contract with the legal employer.
A worker should know the name and contact details of both the employer and the assignment company.
What should the employment contract show?
Before accepting an agency job, the candidate should check whether the documents clearly identify:
- Full legal name of the employer
- Employer’s registered address
- Job title or pay classification
- Gross hourly wage
- Guaranteed working hours
- Expected monthly working hours
- Assignment location
- Shift pattern
- Overtime rules
- Night, weekend and public-holiday supplements
- Working-time-account rules
- Probation period
- Notice period
- Annual leave
- Payment date
- Social-security arrangements
- Accommodation charges
- Transport deductions
- Work-clothing or equipment deductions
- Conditions between assignments
- Applicable collective agreement
Do not rely only on a recruiter’s verbal explanation.
Important financial and employment conditions should appear in the written agreement.
Gross wage is not take-home wage
The wage-floor figures are gross hourly amounts.
The worker’s net salary may be lower after deductions such as:
- Income tax
- Pension insurance
- Health insurance
- Unemployment insurance
- Long-term-care insurance
- Other lawful deductions
The final take-home amount depends on several factors, including tax category, working hours, health-insurance status and personal circumstances.
A recruiter should not describe the gross wage as the amount that will automatically reach the worker’s bank account.
Check accommodation and transport deductions
International workers may be offered accommodation or transport by the agency.
Before accepting, ask:
- Is accommodation compulsory?
- What is the monthly rent?
- Is the room private or shared?
- Are utilities included?
- Is the deposit deducted from salary?
- How far is the accommodation from the workplace?
- Who pays for transport?
- Can the cost change between assignments?
- What happens to the accommodation if the assignment ends?
- Can the worker choose independent accommodation?
A reasonable hourly wage can become financially unattractive if the deductions are excessive or unclear.
What happens between assignments?
A temporary worker is normally employed by the agency, not separately hired by each client company.
The contract should therefore explain what happens when one assignment ends and the next has not yet started.
Ask:
- Does the employment relationship continue?
- Are guaranteed hours still paid?
- Can the worker be assigned to another city?
- How much notice is given before relocation?
- Who pays additional travel or accommodation costs?
- Can accumulated working-time-account hours be used?
These points are particularly important for workers recruited from abroad who may depend on the employer for accommodation and residence-related administration.
Warning signs in an agency-work offer
Candidates should ask further questions when:
- The hourly wage is below the applicable floor
- Only a monthly “up to” salary is mentioned
- Guaranteed hours are not stated
- The legal employer is unclear
- The assignment company is presented as the employer when it is not
- Large deductions are not written into the contract
- Accommodation charges are disclosed only after arrival
- The worker is asked to pay recruitment fees without a clear legal basis
- The recruiter refuses to provide the full contract before travel
- The candidate is told that German worker protections do not apply to foreigners
- Important documents are available only in a language the worker cannot understand
A legitimate offer should withstand basic questions about wages, working hours, employer identity and deductions.
Why this matters for international workers
International candidates may be unfamiliar with German employment terminology and may assume that the company where they work is also their legal employer.
This can create confusion about:
- Salary responsibility
- Leave approval
- Sick-pay procedures
- Contract termination
- Assignment changes
- Accommodation
- Workplace complaints
Before moving to Germany, candidates should understand the complete employment chain.
Agency work can be a legitimate employment model. But it should be based on transparent contracts, lawful wages and clearly explained responsibilities.
Final takeaway
Germany’s new temporary-agency wage floor gives workers an important benchmark.
From 1 July 2026, the gross hourly floor is €14.96. It rises to €15.33 from 1 September 2026 and to €15.87 from 1 April 2027.
But the hourly rate is only one part of the offer.
Workers should also examine guaranteed hours, shifts, overtime, accommodation, transport, deductions, assignment conditions and the identity of their actual employer.
Agency work can provide access to the German labour market—but workers should understand the full contract before accepting, travelling or paying any money.
FAQ
What is temporary agency work in Germany?
It is an employment arrangement in which a worker is employed by an agency but assigned to work temporarily at another company.
What is the temporary-agency wage floor from July 2026?
The wage floor is €14.96 gross per hour from 1 July 2026.
When will the rate increase?
It increases to €15.33 gross per hour from 1 September 2026 and €15.87 from 1 April 2027.
Does the wage floor apply to foreign workers?
It applies to temporary agency workers employed in Germany, including covered workers posted by sector employers based outside Germany.
Is the gross hourly rate the amount workers receive in their bank account?
No. Taxes, social-security contributions and other lawful deductions can reduce the final net amount.
Who is my employer in Leiharbeit?
The staffing agency, or Verleiher, is generally the legal employer. The Entleiher or Einsatzbetrieb is the company where the assignment is performed.
Temporary Agency Work Germany Leiharbeit Germany Zeitarbeit Germany Wage Floor Germany Agency Workers Germany Arbeitnehmerüberlassung Worker Rights Germany
Written by Admin Team
We help international workers understand German employment terminology, wage rules and the practical conditions they should check before accepting an offer.
Understand the complete offer
A salary figure should always be evaluated together with working hours, deductions, accommodation, assignment conditions and the written employment contract.