German Employees Abroad Overpaid Millions for Months Due to Calculation Error

German federal employees stationed at 71 of 220 overseas service locations have been overpaid for months due to a significant calculation error. The issue, which affected payments from July 2025 to June 2026, resulted in an estimated five million euros being disbursed incorrectly.

The Foreign Office confirmed the overpayment, which was initially reported by Der Spiegel. According to an official report, the error originated from a simple sign mistake in the calculation of overseas allowances. These allowances are adjusted based on the cost of living at the duty station compared to Berlin.

In cases where the overseas location is less expensive than Berlin, a negative factor is typically applied. However, in the affected calculations, positive signs were consistently used, leading to inflated payments. The Foreign Office has stated that the federal government cannot reclaim these excess allowances.

Investigations are underway to determine if the service provider responsible for the calculation can be held liable for the financial loss. This article is being updated as more information becomes available.