Germany

Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
19.45%

About 

Germany

Germany, the largest economy in Europe and the fourth-largest in the world, is a global leader in engineering, manufacturing, fintech, and software. With a strong social security system, stable regulatory environment, and access to a highly skilled workforce, Germany is a top choice for global companies expanding into the EU. However, employment laws are complex and highly protective of workers, making compliance essential.

Overview

Population
~84 million
Language
German
Capital
Berlin
Currency
Euro (EUR)
Country code
+49
Min wage
12.41 EUR/hour
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Cycle

Monthly

Avg employer tax

19.45%

Taxation

Tax breakdown - Employer
Average Employer Contributions
~20%–22% of gross salary
Average Employee Contributions
~20%–22% of gross salary

Employer Contributions:

Health Insurance
7.3% (plus 1.7% supplemental average)
Pension Insurance
9.3%
Unemployment Insurance
1.3%
Long-term Care Insurance
1.525% (1.775% for employees without children)
Accident Insurance
~1.3% (varies by industry)

Personal Income Tax: Progressive

Up to EUR 11,604
0%
EUR 11,605 – 66,760
14%–42%
Above EUR 66,761
42%
Above EUR 277,825
45%
Plus Solidarity Surcharge (5.5%) and Church Tax (8–9%)
if applicable
VAT

19%

Holidays / PTO

Public holidays in 2024
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday        
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 26 May: Ascension Day        
  • 6 Jun: Whit Monday        
  • 3 Oct: Day of German Unity        
  • 25 Dec: Christmas Day        
  • 26 Dec: 2nd Day of Christmas
Sick days
  • Paid in full by the employer for up to 6 weeks
  • After 6 weeks: Health insurance pays 70% of salary (capped)
  • Medical certificate required after 3 consecutive sick days (or sooner if employer requests)
Maternity leave
  • 14 weeks paid: 6 weeks before and 8 weeks after birth
  • Paid at 100% of average net earnings (via employer + health insurance)
  • Job protection during pregnancy and up to 4 months after childbirth
Paternity leave
  • No standalone statutory paternity leave
  • Fathers may take parental leave under Elterngeld scheme

Parental Leave:

  • Up to 3 years per parent, unpaid
  • Can be split and used until child is 8 years old
  • Elterngeld (parental allowance) is paid up to 14 months (shared between both parents), covering up to 67% of salary (max ~EUR 1,800/month)

Termination Process

Termination Requirements

  • Must follow strict legal processes
  • Written notice is mandatory
  • Works councils (if present) must be consulted
  • Termination protection laws apply after 6 months of service in companies with >10 employees

Notice Period (by employer)

  • less than 2 years of service: 4 weeks
  • 2–5 years: 1 month
  • 5–8 years: 2 months
  • 8–10 years: 3 months
  • 10 years: Up to 7 months

Employees may terminate with 4 weeks’ notice

Severance Pay

  • Not automatic, but common in negotiated or redundancy-based terminations
  • Formula: 0.5 month’s salary per year of service (if negotiated or court-awarded)

Probation Period

  • Up to 6 months
  • Shorter notice period: 2 weeks

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Tax Calculation

*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
DE
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Germany

Germany, the largest economy in Europe and the fourth-largest in the world, is a global leader in engineering, manufacturing, fintech, and software. With a strong social security system, stable regulatory environment, and access to a highly skilled workforce, Germany is a top choice for global companies expanding into the EU. However, employment laws are complex and highly protective of workers, making compliance essential.
No items found.
Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
19.45%

Overview

Population
~84 million
Language
German
Capital
Berlin
Currency
Euro (EUR)
Country code
+49
Min wage
12.41 EUR/hour
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Monthly, typically paid by the last working day
Time-Based Employees
Monthly, typically paid by the last working day
Avg employer tax

19.45%

Tax Breakdown

Average Employer Contributions
~20%–22% of gross salary
Average Employee Contributions
~20%–22% of gross salary

Employer Contributions:

Health Insurance
7.3% (plus 1.7% supplemental average)
Pension Insurance
9.3%
Unemployment Insurance
1.3%
Long-term Care Insurance
1.525% (1.775% for employees without children)
Accident Insurance
~1.3% (varies by industry)

Personal Income Tax: Progressive

Up to EUR 11,604
0%
EUR 11,605 – 66,760
14%–42%
Above EUR 66,761
42%
Above EUR 277,825
45%
Plus Solidarity Surcharge (5.5%) and Church Tax (8–9%)
if applicable

VAT

VAT

19%

Tax Calculation for Germany
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
DE
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Germany typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be written and signed before the start date
  • Must include job role, salary, benefits, working hours, notice period, and reference to collective agreement if applicable
  • Must be in German or dual-language

Social Security & Tax Registration

  • Obtain employee’s Tax ID, Social Security Number, and Health Insurance info
  • Register with:
    • Tax Office (Finanzamt)
    • Health insurance provider (public or private)
    • German Pension Insurance (DRV)

Payroll Setup

  • Calculate and deduct income tax, church tax, solidarity surcharge, and all social contributions
  • Submit monthly declarations via ELSTER and DEÜV systems

Bank & Payslip Setup

  • Collect IBAN, employment eligibility documents, and digital payslip consent
  • Payslips must be itemized and provided monthly

Orientation & Workplace Rules

  • Share internal policies, GDPR notice, health and safety procedures
  • Outline probation expectations and appraisal timelines
  • For remote workers: clarify home office allowances and policies

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Germany
When drafting an employment contract for employees in Germany, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Paid in full by the employer for up to 6 weeks
  • After 6 weeks: Health insurance pays 70% of salary (capped)
  • Medical certificate required after 3 consecutive sick days (or sooner if employer requests)
Maternity leave
  • 14 weeks paid: 6 weeks before and 8 weeks after birth
  • Paid at 100% of average net earnings (via employer + health insurance)
  • Job protection during pregnancy and up to 4 months after childbirth
Paternity leave
  • No standalone statutory paternity leave
  • Fathers may take parental leave under Elterngeld scheme

Parental Leave:

  • Up to 3 years per parent, unpaid
  • Can be split and used until child is 8 years old
  • Elterngeld (parental allowance) is paid up to 14 months (shared between both parents), covering up to 67% of salary (max ~EUR 1,800/month)
9 Public holidays in Germany

Note: Additional holidays (e.g., Corpus Christi, Epiphany) apply in certain federal states.

1st
New Year’s Day
28th
Good Friday
31st
Easter
1st
Labor Day
9th
Ascension Day
3rd
German Unity Day
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday        
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 26 May: Ascension Day        
  • 6 Jun: Whit Monday        
  • 3 Oct: Day of German Unity        
  • 25 Dec: Christmas Day        
  • 26 Dec: 2nd Day of Christmas

Termination Process

Termination Requirements

  • Must follow strict legal processes
  • Written notice is mandatory
  • Works councils (if present) must be consulted
  • Termination protection laws apply after 6 months of service in companies with >10 employees

Notice Period (by employer)

  • less than 2 years of service: 4 weeks
  • 2–5 years: 1 month
  • 5–8 years: 2 months
  • 8–10 years: 3 months
  • 10 years: Up to 7 months

Employees may terminate with 4 weeks’ notice

Severance Pay

  • Not automatic, but common in negotiated or redundancy-based terminations
  • Formula: 0.5 month’s salary per year of service (if negotiated or court-awarded)

Probation Period

  • Up to 6 months
  • Shorter notice period: 2 weeks

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Germany with RemotePass

Hiring in Germany can be complex but with RemotePass, it’s seamless. We help you compliantly hire employees or contractors without setting up a local entity. From generating German employment contracts to managing payroll, taxes, social security, and offboarding—we handle it all so you can focus on growth.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Germany.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Germany

العملة
Euro (EUR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
19.45%

عن 

Germany

Germany, the largest economy in Europe and the fourth-largest in the world, is a global leader in engineering, manufacturing, fintech, and software. With a strong social security system, stable regulatory environment, and access to a highly skilled workforce, Germany is a top choice for global companies expanding into the EU. However, employment laws are complex and highly protective of workers, making compliance essential.

ملخص

التركيبة السكانية
~84 million
اللغة
German
العاصمة
Berlin
العملة
Euro (EUR)
رمز الاتصال الدولي
+49
الحد الأدنى للأجور
12.41 EUR/hour
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

موعد صرف الرواتب

Monthly

متوسط ​​ضريبة صاحب العمل

19.45%

تحصيل الضرائب

التوزيع الضريبي - صاحب العمل
Average Employer Contributions
~20%–22% of gross salary
Average Employee Contributions
~20%–22% of gross salary

Employer Contributions:

Health Insurance
7.3% (plus 1.7% supplemental average)
Pension Insurance
9.3%
Unemployment Insurance
1.3%
Long-term Care Insurance
1.525% (1.775% for employees without children)
Accident Insurance
~1.3% (varies by industry)

Personal Income Tax: Progressive

Up to EUR 11,604
0%
EUR 11,605 – 66,760
14%–42%
Above EUR 66,761
42%
Above EUR 277,825
45%
Plus Solidarity Surcharge (5.5%) and Church Tax (8–9%)
if applicable
ضريبة القيمة المضافة

19%

العطل / PTO

العطلات الرسمية في عام 2024
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday        
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 26 May: Ascension Day        
  • 6 Jun: Whit Monday        
  • 3 Oct: Day of German Unity        
  • 25 Dec: Christmas Day        
  • 26 Dec: 2nd Day of Christmas
الإجازات المرضية
  • Paid in full by the employer for up to 6 weeks
  • After 6 weeks: Health insurance pays 70% of salary (capped)
  • Medical certificate required after 3 consecutive sick days (or sooner if employer requests)
إجازة الأمومة
  • 14 weeks paid: 6 weeks before and 8 weeks after birth
  • Paid at 100% of average net earnings (via employer + health insurance)
  • Job protection during pregnancy and up to 4 months after childbirth
إجازة الأبوة
  • No standalone statutory paternity leave
  • Fathers may take parental leave under Elterngeld scheme

Parental Leave:

  • Up to 3 years per parent, unpaid
  • Can be split and used until child is 8 years old
  • Elterngeld (parental allowance) is paid up to 14 months (shared between both parents), covering up to 67% of salary (max ~EUR 1,800/month)

إنهاء العقد

عملية الإنهاء

Termination Requirements

  • Must follow strict legal processes
  • Written notice is mandatory
  • Works councils (if present) must be consulted
  • Termination protection laws apply after 6 months of service in companies with >10 employees

Notice Period (by employer)

  • less than 2 years of service: 4 weeks
  • 2–5 years: 1 month
  • 5–8 years: 2 months
  • 8–10 years: 3 months
  • 10 years: Up to 7 months

Employees may terminate with 4 weeks’ notice

Severance Pay

  • Not automatic, but common in negotiated or redundancy-based terminations
  • Formula: 0.5 month’s salary per year of service (if negotiated or court-awarded)

Probation Period

  • Up to 6 months
  • Shorter notice period: 2 weeks
فترة الإشعار

Notice periods in Germany are linked to length of service as listed below:

  • Under 2 years: 1 month's notice
  • 2 to 5 years: 2 months’ notice
  • 5 to 8 years: 3 months’ notice
  • 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

مكافأة نهاية الخدمة

If an employer ends a contract without notice, severance pay must be paid for the same amount that the employee would have earned while working his/her notice period. If an employee's contract is terminated on account of operational changes in a company, severance pay must be given, normally amounting to two weeks' salary per year of service.

فترة الاختبار

Typical probation periods in Germany are six months. However, the exact length of such a period is normally determined by collective agreements.

ازدهار القوى العاملة عن بعد في _

تحديات التوظيف عن بعد في _

تبسيط التوظيف عن بعد في _ باستخدام ريموت باس

حساب الضريبة

*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
DE
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري
GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي
GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
طلب عرض أسعار مفصل