Posting Workers to Germany — MiLoG, A1 and Practice (2026)

Legal framework

Posting of workers within the EU free movement of services is regulated on three levels — European, German and Bulgarian. Understanding this multi-layered framework is a precondition for lawfully sending workers to Germany.

European level

• Directive 96/71/EC on the posting of workers in the framework of the provision of services, as amended by Directive (EU) 2018/957 — introducing the principle of equal pay for equal work at the same place.
• Directive 2014/67/EU — enforcement rules, administrative cooperation, inspections and joint and several liability.
• Regulation (EC) 883/2004 — coordination of social security systems; determines the applicable legislation and introduces the A1 portable document.

Germany

• AEntG (Arbeitnehmer-Entsendegesetz) — the Posted Workers Act; introduces sectoral minimum conditions that become mandatory for posted workers as well.
• MiLoG (Mindestlohngesetz) — the Minimum Wage Act; applies universally to any work performed in Germany.
• SchwarzArbG (Undeclared Work Act) — § 2a defines the sectors subject to intensified inspection by Zoll/FKS.
• MiLoMeldV — the regulation on notifications under MiLoG, setting out the form and content of the declaration to Zoll.

Bulgaria

• Article 121a of the Labour Code — conditions for posting and sending workers in the framework of the provision of services.
• Ordinance on the conditions and procedure for posting and sending workers within the provision of services — the minimum conditions the Bulgarian employer must guarantee the posted worker.

For the general framework of Bulgarian labour law, see our employment law page and our article on hiring employees.

Minimum wage under MiLoG 2026

The key fact every Bulgarian employer must know before posting workers to Germany: from 1 January 2026 the statutory gross minimum hourly rate under MiLoG is EUR 13.90 per hour. The German legislator has already enacted the next step — from 1 January 2027, the rate will rise to EUR 14.60 per hour.

MiLoG is a universal law — it applies to every job performed on German territory, regardless of the origin or seat of the employer. Bulgarian posted workers are entitled to the same minimum hourly rate as German workers. Wages must be paid by the end of the banking business day of the month following the month in which the work was performed (§ 2 MiLoG).

Sectoral minimum wages (AEntG)

In addition to the universal MiLoG, higher sector-specific minimum rates apply in a number of industries, declared generally binding under the AEntG. They are mandatory for posted workers from other Member States as well. The most important sectors are:

• Construction (BAU-AEntG) — often higher rates, with different tariffs for skilled and unskilled labour;
• Electrical trades;
• Building cleaning;
• Care services (elderly and disabled);
• Roofing;
• Painting and varnishing;
• Meat processing industry.

Each Bulgarian employer must check in advance the applicable collective agreement for the specific activity in Germany. Paying the "standard" MiLoG rate when a higher sectoral rate applies is an infringement subject to the same sanctions.

A1 certificate — social security

The A1 portable document certifies that the posted worker remains covered by Bulgarian social security rather than German social security. The legal basis is Article 12 of Regulation (EC) 883/2004.

Issuing authority and duration

In Bulgaria, A1 certificates are issued by the National Revenue Agency (NRA). The standard maximum duration of an A1 under Article 12 is 24 months. Extension beyond this period is possible only through an exception agreement under Article 16 of Regulation 883/2004, which requires a joint agreement between the competent institutions of Bulgaria and Germany.

Substantive conditions

For the issuance of an A1 under Article 12, all of the following conditions must be met:

• The employer carries out substantial activities in Bulgaria (not a mere letterbox) — at least 25% of turnover, staff and contracts in Bulgaria;
• Continuity of the employment relationship — the employment contract between the Bulgarian employer and the worker remains in force throughout the posting;
• The posted worker does not replace another posted worker in the same position;
• The worker has been covered by Bulgarian social security for at least one month prior to posting.

Procedure

The application is submitted via form OKd-236, available in the NRA e-services. The standard processing time is up to 30 days, though in practice it is often shorter with well-prepared files. The original or electronically certified document must physically be present on site at every inspection — Zoll checks A1 availability first, and its absence is treated as a presumption that German social security is applicable.

Since 2023, employers are required to obtain A1 before the posting begins. Subsequent issuance remains possible but is subject to heightened scrutiny and may lead to sanctions for failure to pre-pay social contributions.

Notification to Zoll (Meldepflicht)

Every foreign employer posting workers to Germany in certain sectors must submit a prior notification to the German customs authority (Zoll / Finanzkontrolle Schwarzarbeit — FKS) BEFORE work begins for each worker. The legal basis is § 16 MiLoG and MiLoMeldV, and for sectors covered by § 2a SchwarzArbG, additionally § 18 AEntG.

Notifications are submitted exclusively online through www.meldeportal-mindestlohn.de. The portal is free, available in German and English, and supports both one-off notifications and framework notifications (Einsatzplanung) for sectors with frequently changing sites (e.g. transport).

The notification must contain details of: the employer and authorised representative in Germany, name and date of birth of each worker, the start and expected duration of work, the site/address, the contractual relationship with the German client, and a declaration of compliance with MiLoG.

There is no minimum threshold — notification is mandatory regardless of duration, including for a single working day. Failure to notify or submitting incorrect data constitutes a separate administrative offence.

Sectors with mandatory notification (§ 2a SchwarzArbG)

In all other sectors MiLoG still applies, but without the notification obligation under § 16 MiLoG. However, this does not exempt the employer from the obligations to document, pay the minimum rate, and keep records on site.

Equal treatment principle (12 + 6 months)

Following the transposition of Directive (EU) 2018/957, the principle of "equal pay for equal work at the same place" is at the heart of the regime. The German client and the Bulgarian posting employer must ensure that the posted worker is covered by German rules on:

• Minimum remuneration — not only the basic rate, but all mandatory components (night-work allowances, overtime, hazardous-work premiums, 13th-month pay where mandatory under a generally binding collective agreement, etc.);
• Working time, rest periods and night work;
• Paid annual leave — the more favourable regime applies;
• Health and safety at work;
• Protection of pregnant women and young workers;
• Equal treatment between men and women and non-discrimination;
• Accommodation conditions, when provided by the employer;
• Reimbursement of travel, daily and overnight expenses for business trips within the host country.

The regime has two stages. Up to 12 months from the start of the posting, only the "hard core" of German labour law applies (the items listed above). After the 12th month (with a possible 6-month extension upon a reasoned notification to Zoll, i.e. up to 18 months), the full body of German labour law applies — including rules on termination, dismissal protection, supplementary occupational pension and all generally binding collective agreements, with the only exceptions being the procedures for concluding and terminating the employment contract and supplementary pension schemes.

On-site documentation (in German)

Under § 17 MiLoG and § 19 AEntG, the employer must keep and make available to Zoll upon inspection a set of documents translated into German or originally drafted in German. The documents must be physically available on German territory — normally at the authorised representative or on site.

• A1 certificate for every posted worker (original or certified copy);
• Employment contract and any posting annex;
• Payslips (Lohnabrechnungen) for the entire posting period;
• Working-time records — start, end and duration of each working day. These must be drawn up no later than the end of the 7th day following the day on which the work was performed;
• Proof of payment of remuneration (bank statements, payment orders);
• Confirmation of Zoll notification (printout from meldeportal-mindestlohn.de);
• Posting annex — signed by both parties, clearly stating the rate, place of work, duration and additional terms.

Retention period: 2 years from the start of the posting. Documents must be produced on first request by Zoll/FKS inspectors. Refusal or delay in production is treated as a separate infringement with its own sanction.

Sanctions

Administrative fines for infringements of MiLoG and AEntG are among the highest in the EU. Fines are imposed by Zoll/FKS and are separate for each breach and each worker.

The additional consequences are often more serious than the fine itself. Where a fine of EUR 2,500 or more is imposed, the employer is excluded from public procurement in Germany for up to 3 years and is recorded in the Wettbewerbsregister (Competition Register). In cases of systematic infringement, criminal liability under § 266a StGB (non-payment of social contributions) may also be triggered.

General contractor liability (Generalunternehmerhaftung)

One of the most distinctive features of the German regime is the strict joint and several liability of the general contractor (and client) for the obligations of subcontractors along the chain. The legal basis is § 13 MiLoG, which via a cross-reference to § 14 AEntG extends the Bürgenhaftung mechanism to the minimum wage.

Practical consequence: if a Bulgarian subcontractor fails to pay the minimum hourly rate to its workers, the workers may claim directly from the German general contractor (and from every intermediate contractor in the chain) the unpaid wages, including social security contributions. Liability is strict — it does not depend on fault or knowledge of the general contractor.

Because of this risk, virtually all large German contractors require Bulgarian subcontractors to produce copies of A1 certificates, proof of MiLoG payment, payslips, compliance declarations, and to agree to contractual recourse clauses and bank guarantees.

Transport sector — special rules (Mobility Package I)

For road haulage and passenger transport the regime is specific. From 2 February 2022, Directive (EU) 2020/1057 (part of Mobility Package I) harmonises posting rules in international transport and replaces national notification regimes for certain operations.

Practical consequences for Bulgarian carriers operating in/through Germany:

• The MiLoG notification to Zoll does not apply to road transport — it is replaced by a declaration through the IMI Public Interface (postingdeclaration.eu);
• Exemptions from the posting regime: pure transit through Germany without loading/unloading, and certain bilateral operations (to/from the state of establishment, with up to two additional loading points per leg);
• Always covered by posting: cabotage (domestic transport in Germany by a non-resident carrier) and cross-trade (transport between two states other than the state of establishment).

The IMI declaration is valid for up to 6 months and covers all drivers the employer intends to post during this period. The driver must carry a copy of the declaration, the employment contract and tachograph records for the last 28 days.

Tax consequences — the 183-day rule

Alongside labour and social security obligations, posting workers to Germany creates tax risks — both for the worker (Lohnsteuer) and for the employer (risk of a permanent establishment, Betriebsstätte). The key reference is the Bulgaria-Germany Double Tax Treaty (DTT).

183-day rule

Employment income of the posted worker remains taxable only in Bulgaria if the following three conditions are met CUMULATIVELY:

1. The worker's presence in Germany does not exceed 183 days in any 12-month period beginning or ending in the tax year concerned;
2. The remuneration is paid by an employer not resident in Germany (i.e. the Bulgarian employer);
3. The remuneration is not borne by a permanent establishment that the employer has in Germany.

If even one of the three conditions is not met, the income is taxable in Germany with Lohnsteuer from day one. For long-term projects (particularly construction), the third condition is the most risky: a construction or installation site lasting more than 12 months is treated as a permanent establishment under Article 5 of the DTT, which automatically brings the entire remuneration within German taxation.

For a more detailed discussion of the concept of "permanent establishment", see our article on permanent establishment and tax risks.

Practical checklist

The following 10 steps summarise the obligations of a Bulgarian employer on every posting of workers to Germany. Missing even one significantly increases the risk of penalties and loss of contracts.

1. Bilaterally signed posting annex, clearly stating the rate (at least MiLoG or the applicable sectoral rate), site, duration and additional terms.
2. A1 certificate application to the NRA (form OKd-236) at least 30 days before posting begins.
3. MiLoG/AEntG notification to Zoll before the first working day — via meldeportal-mindestlohn.de.
4. Prepare documents in German: employment contract, payslips, working-time records.
5. Appoint an authorised agent for service in Germany (Zustellungsbevollmächtigter) to receive official correspondence from Zoll.
6. Record working time no later than the end of the 7th day following the day on which the work was performed.
7. Check the applicable rate — universal MiLoG or the higher sectoral AEntG rate for the specific activity.
8. Assess PE risk and the 183-day rule for every long-term project.
9. For road transport — declaration through IMI Public Interface (postingdeclaration.eu) for all drivers.
10. Brief the workers: they must always carry the A1 certificate and ID card/passport on site and know the name of the authorised representative.

See also our related resources on hiring employees, disciplinary dismissal and compensation for unused annual leave.

Frequently asked questions