6 % of German employees on fixed‑term contracts in 2025 as reforms extend limits to 48 months
Six percent of German workers held fixed‑term contracts in 2025, down from seven percent in 2015. The coalition has voted to raise the maximum total duration to 48 months and allow up to six extensions, with the measure set to expire at the end of 2030.
Six percent of German employees aged 15‑64 held fixed‑term contracts in 2025, down from seven percent in 2015 (Statistisches Bundesamt, cited by Handelsblatt).
Labour‑market figures
The Statistisches Bundesamt released the latest labour‑market statistics on 14 August 2026, confirming that 2.2 million people – six percent of the employed population aged 15‑64 – were on a fixed‑term contract in 2025. The share fell by one percentage point, a 14.3 % relative decline.
Coalition reform
In early July 2026 the governing coalition agreed to double the permissible total duration of sachgrundlos (reason‑less) fixed‑term contracts to 48 months and to allow up to six extensions. The amendment carries an expiry clause that will end the measure on 31 December 2030.
"The hiring brakes must now be lifted quickly," said Steffen Kampeter, employer‑association representative, after the reform was announced.
Implications
The extension aims to increase flexibility in a labour market that has shown a gradual shift away from temporary work. Employers argue that longer horizons will reduce administrative churn, while critics warn the temporary‑work surge could re‑emerge once the four‑year ceiling is reached.
Share of fixed‑term contracts
| Year | Share |
|---|---|
| 2015 | 7 % |
| 2025 | 6 % |
| Source: Handelsblatt quoting Statistisches Bundesamt | |
The reform will be reviewed before its 2030 expiry, and the Federal Ministry of Labour is expected to publish an impact assessment later this year.
