Minimum wage director

In Germany, a director (Geschäftsführer) of a GmbH has an arrangement that the salary must be reasonable and in line with the market (“Die Zahlung eines angemessenen Gehalts”). What is reasonable depends on the circumstances, such as, for example, in which sector activities are performed, whether the GmbH is newly established and whether the director is also a shareholder.

In certain cases it would therefore be possible that the director does not receive (minimum) remuneration, but that depends on the circumstances. Similar legislation as applicable in the Netherlands, whereby a minimum wage of EUR 43,000 is prescribed (Article 12a of the LB Act), therefore does not apply in Germany.