Looking to hire in Germany

Germany has a statutory minimum wage equivalent to EUR 26700 per year. Employers typically face social security contributions around 22.05%, covering pension, health, care, unemployment, and accident insurance, with some elements capped at specific income levels. Employees contribute to pension, health, care, and unemployment insurance at a combined headline rate of 20.85–21.45%, also subject to caps. Income tax is progressive, with typical headline rates between 27–45%, and is withheld through payroll.

We can help you get a new employee started in Germany fast. The minimum onboarding time we need is only 48 hours. Our team ensures fast, compliant employee onboarding and payroll processing. The onboarding timeline starts once the employee submits all required information via the NEO platform.

German payroll contributions are shared between employer and employee, with both sides funding pension, health, care, and unemployment insurance, and employers additionally covering accident insurance. Several contributions are subject to income caps, so the effective rate can vary by salary level.

A standard full-time work schedule in Germany is based on a 40-hour workweek spread across Monday to Friday. This pattern underpins most employment contracts and overtime calculations.

German employees are entitled to paid time off and sick leave under defined policies. Paid time off accrues annually, while sick leave is available up to a capped number of days and may require medical certification after a short absence.

Germany observes several nationwide public holidays each year. These fixed and moveable holidays should be factored into workforce planning and scheduling.

Employees in Germany must submit expenses promptly. Current-year expenses must be submitted within 60 days of the expense date or within 30 days after returning from a business trip, whichever is later, and prior-year expenses are not accepted after February 1 of the following year.

In Germany, allowances are one-time or recurring benefits paid in addition to salary and are treated as taxable income unless specifically stated otherwise. Employers can request that allowances be grossed up so the employee receives a target net amount, but this may require small corrections in later payrolls because gross calculations are only estimates.

All listed allowances are discretionary and may be offered to one or more employees at the employer’s choice. They are processed manually and are taxable.

German employment contracts typically include both a probationary period and a notice period for termination. Probation allows for more flexibility early in the relationship, while the standard notice period applies once probation has ended.