Statutory Requirements under the Vocational Education Act (BBiG)
The Vocational Education Act (BBiG) forms the legal basis for Vocational Training Compensation (Ausbildungsvergütung) in Germany. According to § 17 BBiG, the training company is obliged to pay a reasonable compensation. This compensation must be specified in the training contract and adjusted at least once annually during the training period.
Minimum Vocational Training Compensation (Mindestausbildungsvergütung)
Since January 1, 2020, a legally mandated minimum Vocational Training Compensation (Mindestausbildungsvergütung) has been in effect in Germany for companies that are not bound by collective agreements. This remuneration is adjusted annually and incrementally increases over the course of the training years:
- In the first training year: A fixed base amount (e.g., €620 in 2025)
- In the second training year: 18% increase compared to the first year
- In the third training year: 35% increase compared to the first year
- In the fourth training year: 40% increase compared to the first year
The statutory minimum Vocational Training Compensation (Mindestausbildungsvergütung) ensures that even in companies not bound by collective agreements, a reasonable financial remuneration for apprentices is guaranteed.
Collective Agreement Provisions
In companies bound by collective agreements, the level of Vocational Training Compensation (Ausbildungsvergütung) is determined by the respective applicable collective agreements. These contracts are negotiated between employers’ associations and trade unions and include binding provisions regarding the amount of compensation as well as its annual increases.
Industry-Specific Differences
The level of collective Vocational Training Compensation (tarifliche Ausbildungsvergütung) varies significantly between industries. For example, compensations in the metal and electrical industry as well as the chemical industry are considerably higher than in other sectors such as retail or hospitality. The following examples illustrate the collective compensation in various industries:
- Metal and Electrical Industry: 1st year approx. €1,100, 2nd year approx. €1,180, 3rd year approx. €1,260
- Construction Industry: 1st year approx. €1,200, 2nd year approx. €1,400, 3rd year approx. €1,600
- Retail: 1st year approx. €1,000, 2nd year approx. €1,100, 3rd year approx. €1,200
Binding Nature of Collective Agreements
For companies bound by collective agreements, the compensations specified in the collective agreements are binding. This means that companies may not deviate from the collective provisions, even if they wish to offer higher compensations. In industries without collective agreements, companies are free to set their compensation levels, but they must adhere to at least the statutory minimum Vocational Training Compensation (Mindestausbildungsvergütung).
Additional Benefits in Collective Agreements
In addition to the base compensation, collective agreements often regulate additional benefits for apprentices. These include:
- Holiday and Christmas bonuses
- Travel allowances
- Subsidies for educational materials
- Special payments for successful examinations
These additional benefits significantly enhance the financial attractiveness of Vocational Training (Ausbildung) in companies bound by collective agreements.
Monitoring Compliance
The compliance with collective and statutory regulations is monitored by the responsible chambers (Chamber of Industry and Commerce, Chamber of Crafts) as well as the Occupational Safety Offices. Violations of the regulations can lead to sanctions for the training company.
Important Notes
Apprentices should inform themselves before starting their training whether the training company is bound by collective agreements and what compensations are customary in their respective industry. The responsible chambers and trade unions provide comprehensive information on this topic. A fair and reasonable compensation is not only legally mandated but also a crucial factor for motivation and success during the training period.