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Emergency

Employer pays wages too late: default, interest and leverage

Wages are due at a fixed time, usually at the end of the month or on a day named in the contract. If the employer pays too late, they fall into default. Then you can demand default interest and a flat rate, and in the case of persistent non-payment initiate further steps.

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Your chances of getting your money back

If the employer does not pay by the due date, they fall into default (§ 286 BGB). You can demand default interest, for consumers 5 percentage points above the base interest rate (§ 288 BGB).
For each case of default, a default flat rate of 40 euros can additionally apply. In the case of significant, persistent wage arrears, further leverage comes into consideration.

What you should do now

  1. 1

    1. Check the due date

    Look in the employment contract for when wages are due. Without a rule they are usually due at the end of the month.

  2. 2

    2. Send a written reminder

    Demand the outstanding wages in writing with a specific deadline and point out default interest and the flat rate.

  3. 3

    3. Calculate interest and flat rate

    Calculate the default interest from the due date and apply the default flat rate.

  4. 4

    4. Escalate

    If arrears remain, withholding of work performance (after announcement) or a lawsuit comes into consideration. Observe exclusion periods.

How to spot the scam

  • Wages come a few weeks too late month after month.
  • 'Liquidity problems' are cited again and again as the reason.
  • The contract contains short exclusion periods that endanger your claims.

Frequently asked questions

From when is the employer in default?

As soon as wages are due and not paid; a separate reminder is often not required for a calendar-determined due date (§ 286 BGB). Then default interest applies.

What interest and what flat rate can I demand?

Default interest of 5 percentage points above the base interest rate for consumers (§ 288 BGB) as well as a default flat rate of 40 euros per case of default. Send a written reminder for the wages.

May I refuse work if the wages fail to appear?

In the case of significant, not merely minor, arrears you can exercise a right of retention after a prior announcement. This is delicate, so announce it in writing and, if in doubt, seek advice.

Take action now

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.