The German government has announced a direction for reforms that could significantly change the way work is done in that country.

Chancellor Friedrich Merz said that he wants to give employees and companies more freedom, more incentives to work, and greater flexibility in organizing working hours. The information is based on the official government statement that Merz delivered on May 14, 2025, before the Bundestag in Berlin.

Work after the age of 67 should be voluntary

In his speech, Merz particularly highlighted the concept of the so-called active retirement, that is, the possibility for people to voluntarily continue working even after the age of 67. According to him, the goal is not to force older workers to remain in the labor market, but to create conditions in which continuing to work would be more financially worthwhile for those who want it.

The German chancellor linked this measure to the broader principle that work, effort, and performance must be rewarded more. In other words, the government wants to send the message that staying longer in the world of work should not be only a personal decision of the individual, but also a decision that is reflected in income.

Weekly instead of daily working time limits

The part of the statement that drew the most attention was the one in which Merz announced greater flexibility in working hours. He said that the government would give employees and companies more room by introducing a weekly, instead of a daily, maximum working time.

This means that in the future working time would no longer necessarily be viewed through the strict daily rule of 8 hours, but through the total weekly pool of working hours. In practice, this could mean that in certain jobs one day is worked significantly longer, for example up to 13 hours, and another day shorter, provided that weekly limits, rest rules, and other legal protections for workers are respected. The current German Working Hours Act generally limits the working day to 8 hours, with the possibility of extending it to 10 hours if, over the prescribed period, the average is reduced again to 8 hours.

It is important to emphasize that Merz did not say in the speech that every worker protection would be abolished or that employees would automatically have to work longer. He spoke about replacing the daily limit with a weekly framework, which in practice would mean a different distribution of working hours. European rules still provide for a minimum of 11 hours of uninterrupted daily rest in every 24-hour period and a limit on average weekly working time of 48 hours, including overtime.

What applies under the current rules?

According to the German Working Hours Act, regular daily working time generally must not exceed 8 hours. It may be extended to 10 hours, but only if, over the prescribed period, the average is reduced again to 8 hours per working day.

That is why the announcement of a weekly limit is not just a technical change, but a potentially important political and labor issue. Employers see in it greater adaptation to the real needs of the job, while trade unions will likely focus especially on the issue of health protection, overtime, and the balance between work and private life.

Tax relief for lower and middle incomes

In the same part of the speech, Merz also announced targeted tax relief for people with lower and middle incomes. However, he added an important caveat. According to him, such a measure will depend on the financial capabilities of the state, with economic growth playing a decisive role.

This means that the tax changes were not presented as an immediate and unconditional measure, but as a goal that should be achieved when budgetary room allows it. The government is thus linking labor reform and tax relief with the recovery of the German economy.

A broader message from the new government?

Merz placed these announcements within a broader program through which the new German government wants to increase the competitiveness of the economy, reduce bureaucracy, and encourage investment. In the speech, he stated that Germany must become economically stronger again and that the reforms do not concern only companies, but also employees.

For Croatian workers who work in Germany or are considering leaving, this is a topic worth following. A possible change in working hours could affect work schedules, overtime hours, and shift organization, especially in sectors in which a large number of foreign workers are employed.

What comes next?

For now, this is a political announcement from an official government statement, not an already adopted law. The specific rules will become clear only when the German government presents a legislative proposal and when it becomes clear how worker protection, working time limits, and the conditions for voluntary work after the age of 67 will be regulated in it.

Merz's message nevertheless shows the direction in which the new German government wants to go. More flexibility for employers, greater incentives for workers, and a longer voluntary stay in the labor market are becoming an important part of German economic policy, but the final effect will depend on the details of the law and on whether the balance between the needs of the economy and the protection of employees will be preserved.