Extension of recovery overtime until the end of 2025

What are recovery overtime hours?

Recovery overtime consists of an additional package of 120 voluntary overtime hours per calendar year, on top of the existing statutory quota of 100 hours. They offer attractive benefits for both employers and employees:

• No obligation to pay an overtime premium

• Not included in the internal limit for overtime

• Exempt from social security contributions and taxes

For employers, this provides a fiscally advantageous way to have extra work carried out flexibly, without incurring additional wage costs.

Extended until the end of 2025

The measure was originally valid until 30 June 2025, but has since been extended until 31 December 2025 through the Programme Act of 17 July 2025. While the term has been extended, the maximum of 120 recovery overtime hours per employee remains unchanged.

The extension took effect on 1 July 2025 and will run until 31 December 2025. Thanks to this prolongation, employers have six additional months to make use of this advantageous scheme.

Looking ahead to 2026

The coalition agreement of the Arizona coalition includes a further expansion of the system. From 2026 onwards, the recovery overtime quota could potentially be increased to 240 hours per year. A draft bill on this matter is expected after the summer.

What does this mean for you?

In 2025, you can have up to 120 recovery overtime hours performed per employee, spread across the entire calendar year. These hours can be paid net, without additional social security contributions or taxes. The extension therefore gives you more flexibility and financial breathing space, especially during peak workload periods.

Do you have further questions about recovery overtime? Don’t hesitate to contact your file manager, we’ll be happy to help.