Reduced number of employees putting in extra hours of work
In Germany, overtime work has been a topic of interest, with varying trends across different industries and sectors. According to data from the Federal Statistical Office, around 4.4 million German employees, representing 11% of the workforce, regularly work overtime.
One of the industries with the highest documented overtime is law enforcement, particularly the Federal Police. The surge in border controls and immigration enforcement has led to increased workloads, with the Federal Police recording over 720,000 hours of overtime by May 2025, and totals reaching 2.8 million additional hours by June [2].
Contrary to this, broader labor market trends in Germany show a general decline in average working hours per capita and weekly working hours over recent years, including the period around the COVID-19 pandemic. This decline is primarily due to worker preferences for part-time employment rather than regulatory changes, and there is no widespread evidence of increased overtime in most sectors [3].
However, the growth of the shadow economy, which includes economic activities operating outside official regulation and not reporting labor hours or paying taxes, has been a concern. The shadow economy, estimated at €482 billion in undeclared work in 2024, potentially includes unregulated overtime but operates outside official labor statistics and oversight [1].
Recent government developments aim to address this issue. Plans are underway to formalize minimum wage increases and clarify overtime recording and tax exemptions for overtime pay, which could impact employer practices on overtime going forward [4].
Interestingly, overtime is most common in financial and insurance services, with 71% of those who work overtime using a work-time account, which can be balanced out as free time later. Overtime is least common in the hospitality industry [5].
The majority of overtime workers in Germany (45%) work no more than 5 hours per week. One in seven (15%) overtime workers works more than 15 hours per week, while 16% of those who work overtime are directly compensated for their overtime [6].
It's also worth noting that 19% of overtime workers in Germany work unpaid overtime, and this figure is particularly high among men (13%) compared to women (10%) [7].
In summary, while law enforcement and certain sectors experience high rates of overtime, general trends in Germany show a decline in regular working hours and no widespread rise in overtime. The growth of the shadow economy suggests a large segment of unreported labor and possible overtime outside official channels. New labor laws may impact overtime regulation and compensation in the near future.
- In contrast to the high overtime rates in some sectors like law enforcement and financial services, the overall trend in Germany indicates a decline in average working hours, with no widespread evidence of increased overtime in most industries, apart from the unreported labor in the shadow economy.
- The financial and insurance services sector stands out as it has the highest rate of overtime, with 71% of overtime workers utilizing a work-time account, while the hospitality industry has the least documented overtime.
