Find your employer of record in Germany

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Germany - EOR World Wide

Germany

currency

Euro (EUR)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 20.645

Employer Tax

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Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Berlin

Euro (EUR)

DD/MM/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

Germany famous place - EOR World Wide

Find your employer of record in Germany

Germany

currency

Euro (EUR)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 20.645

Employer Tax

Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Berlin

Euro (EUR)

DD/MM/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

0

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Overview

Euro (EUR)

CURRENCY

Berlin

CAPITAL

monthly

PAYROLL FRECUENCY

9

PUBLIC HOLIDAYS

0 to 20.645

EMPLOYER TAXES

13TH / 14TH SALARY

The 13th Salary in this region is usual and typically given at the end of the year.

Employee and employeer taxation in Germany

Employer

Business Payroll Contributions

- 7.90%

Health insurance (KV)

- 0.60%

TK-specific additional contribution rate

- 9.30%

Pension insurance (RV)

- 1.20%

Unemployment insurance (AV)

- 1.52%

Long-term care insurance (PV)

- 0.12%

Insolvency charge (effective when the individual reaches the age of 23, and is boosted to 1.775% for employees who do not have children)



0% - 20.64%

Total Employment Cost

Employee

Worker Payroll Contributions

7.90%- 7.90%

Health insurance (KV)

0.6%- 0.6%

TK-specific supplementary contribution rate

9.30%- 9.30%

Pension insurance (RV)

1.20%- 1.20%

Unemployment insurance (AV)

1.52%- 1.52%

Long-term care insurance (PV)

0%- 9%

Church tax (When registering in Germany, you must declare your region; if you are Protestant, Catholic, or Jewish, you must pay the church tax, which the tax department gathers on account of religious organizations in the region. It presently stands at 8% in Bavaria and Baden-Württemberg, and 9% in the remaining federal states. There will be no church tax to pay if there is no specified faith)


20.52% - 29.52%

Total Employee Cost



Employee Income Tax in Germany

Tax Rate for Married People:

0%


Germany famous place - EOR World Wide
Germany famous place - EOR World Wide
Minimum Wage in Germany
General

The Minimum Wage Act (Mindestlohngesetz- MiLoG) sets the National Minimum wage as 9.82 EUR on 1 Jan. 2022 and increases to 10.45 EUR on 1 July 2022. 


Furthermore, the earnings limit for mini-jobs will rise from 450 EUR to 520 EUR, and for midi-jobs to 1,600 EUR (from the current 1,300 EUR). (A mini-job is a position in Germany where the employee earns no more than a certain amount each month, allowing people to work fewer hours free of tax). 


However, many different minimum rates are depicted in industry-specific collective bargaining agreements. 

$1705 Minimum Wage per month

Germany famous place - EOR World Wide

Payroll Contributions in Germany

Payroll Cycle

Companies in Germany provide payroll every month and they usually pay it on the 25th of every month.

13th Salary

This extra payment is a custom in Germany and employers provide it on the December payroll date.

Employee Benefit in Germany

  • Travel insurance.
  • Car allowance.
  • Wellness allowance.
  • Internet and phone allowance.
  • Bonus for holidays and vacations.
  • Performance bonuses, and bonuses for good behavior.


Also, employees can use the Edenred Card, a tax-free benefits card, at stores, shops, and service stations.

Visa and work permit in Germany

To work in Germany, one needs a long-term national visa type D, which permits visitors to stay for more than 3 months. The minimal skill level required by the German government for applicants changed in 2020; it is now degree level, along with proficiency in the German language.

The various Visa categories are as follows:

  • An employee with an EU Blue Card is eligible to work across all of Europe. An application for an EU Blue Card must be a university graduate, have a job offer from the company hiring them, and earn less than the threshold of 50,800 EUR for other candidates and 39,600 EUR for IT professionals, mathematicians, and engineers.
  • A permanent home for important persons. Researchers, academics, and scientists who are well-known for their work are all affected.
  • Permission for experts with excellent qualifications. If you do have the necessary talents and earn 86,400 EUR per year, you can get a work visa for Germany.
  • Broader employment German work permits of this kind are in high demand. Education and specialty requirements are not particularly strict. Additionally, at the moment the request is made, the occupation must be in demand. You must verify your eligibility and present a signed job contract in order to make a visa application.
  • For job search. Getting a work visa for Germany in order to work there afterwards is a possibility. If permitted, a person may remain in the nation for a period of six months before having to reapply or get a resident permit.

VAT in Germany

In Germany, the typical VAT rate is 19.00%.

Working Hours in Germany
General

In Germany, the usual working week is 48 hours each week, 8 hours each day.


This can be increased to 10 hours daily if the total average work schedule does not surpass 8 hours per day within 6 months or 24 weeks.

Overtime

Overtime work must adhere to the limit working hours set in the worker contract/collective agreement, for example.

There are two forms of overtime. The first is Mehrarbeit, which relates to work hours that exceed the Working Hours Act's statutory restriction of 48 hours a week (8 hours each day during a 6-day work week). This can be increased to 10 hours daily if the employee's total labor hours average 8 hours per day for the previous six months.

The second, Überstunden, is legally acceptable and must typically be compensated. It is regarded as any hours worked in excess of one's contractually stipulated hours.

Working Week

Monday to Saturday

Employee Termination in Germany
Termination Process

The termination procedure can change depending on the employment and collective agreement that are in place and how is the termination politics on it. After the first 6 months of contract go by, employees have protection from the German Termination Protection Act.

Notice Period

Generally, the German notice period is of four weeks, this is established in the contract and it will depend on the length of service of the employee. 


  • 8 to 10 years: 4 months’ notice
  • 10 to 12 years: 5 months’ notice
  • 12 to 15 years: 6 months’ notice
  • Over 15 years: 7 months’ notice

Severance Pay

Only when an employer ends an employment relationship with no prior notice is severance pay applicable; in this scenario, the severance payment might be equal to the amount the worker would have earned with notice.


If operational changes at the company are the reason for the termination, the employer is required to provide severance compensation, which is typically equal to two weeks of regular salary for every year of service.

Probation Period

Periods of trial or probation are typically outlined in collective bargaining agreements. However, up to six months is a typical practice in Germany.

Employee Leaves in Germany
Paid Time Offs

The Bundesurlaubsgesetz - the Federal Holidays Act - establishes a statutory minimum entitlement to annual leave of 24 working days each year. Many collective bargaining agreements raise this right to 30 days of work, and individuals who work in hazardous or high-risk workplaces are frequently eligible to supplementary leave.

Germany famous place - find your EOR
Public Holidays

There are 9 national holidays throughout the year.

Vacation Holidays

There are 24 vacation holidays throughout the year.

Sick Days

Employees who qualify (those who have worked for four weeks prior to taking sick leave) are entitled to sick pay at 100% of regular salary for a maximum period of six weeks (Entgeltfortzahlung bei Krankheit oder Kur). For incapacity brought on by the same illness, measured from the beginning of the illness, the healthcare insurance plan (Krankengeld) provides from 70.00% to 90.00% of the usual wage after six weeks, depending on the insured employee's fund level, for a maximum of 78 weeks over three years.


The employee is required to notify the employer as promptly as possible if they will be unable to work and for how long. An employee must provide a doctor's confirmation no later than the next business day if an illness lasts more than three days.

Paternity Leave


Paternal Leave

In order to be eligible for unpaid parental leave (Elternzeit), new parents must submit a written request at least 7 weeks before the start time. Paternity leave falls under this type of leave.


The 36 months of parental leave, which also includes the 8 weeks of postpartum leave, can be split between the parents. However, the first three years of parental leave must be spent by the parents for at least 12 months; the remaining time can thereafter be used, with the employer's approval, at any time between the child's second and seventh birthdays. With prior approval from the employer, parents are also able to work a part-time schedule of a maximum of 30 hours a week while on parental leave.

Other Leave

According to the collective employment contract, employees can enjoy of additional leave once their employer approves them (this includes family care time or Pflegezeitgesetz). Family care time gives employees a maximum of ten unpaid leave days to resolve family emergencies.

Maternity Leave in Germany

According to the Mutterschutzgesetz (MuSchG), a pregnant worker is eligible to 14 weeks of maternity leave payment, which can be extended to 18 weeks in cases of complex or multiple births.


Prenatal leave, which must be taken at least six weeks before the projected due date, and Postpartum leave, which must be taken for the remaining 8 weeks starting on the day the child is born, make up the two halves of maternity leave.


The maternity payment is provided by the national health insurance fund. The payment is equal to the average of the net salaries paid by the employee's public insurance (or the government in the case of employees with private health insurance, up to 210 EUR) and the company for the 3 months prior to the pregnancy.


Maternity benefits (Mutterschaftsgeld) are only paid by public medical insurance up to a daily maximum of 13 EUR. A stipend (Zuschuss Zum Mutterschaftsgeld) must be paid by the employer if the daily net wage over the previous three months was higher.

There are 98 leave throughout the year.

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