Expand your global workforce in Germany
Your guide to the employment landscape, working customs and local labor laws in Germany
Capital
Berlin
Currency
Euro (EUR)
Languages
Germany and English
GDP per Capita
$54,200
Employer Tax
20.015%
Payroll Frequency
Monthly
Talent overview
Germany has the largest economy in the whole of Europe. Also, Germany holds the position of the 4th-largest economy by nominal GDP and the 5th-largest by PPP. The country holds the best and growing industries within years, having the largest domestic market in the EU.
Major economic hubs:
Berlin, Hamburg, Munich, Frankfurt am Main
Skills in demand:
Software developers, architects, programmers; Electrical engineers, Nursing professionals, IT Consultants, and analysts.
Germany
Top local universities in Germany
Ludwig-Maximilians-Universität München
Ranking
Local: 1
World: 88
Freie Universität Berlin
Ranking
Local: 2
World: 115
Technische Universität München
Ranking
Local: 3
World: 130
Ruprecht-Karls-Universität Heidelberg
Ranking
Local: 4
World: 136
Ruhr-Universität Bochum
Ranking
Local: 5
World: 151
Top Local Job Boards
Indeed, StepStone, Arbeitsagentur
Number of LinkedIn users
15,910,000
Multiplier Recruitment Partner
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
The table below provides the average salary data for Germany:
| Job Title | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
| Business Development Manager | 5,880 | 6,541 |
| Accounting Manager | 5,670 | 6,307 |
| Human Resources Manager | 5,400 | 6,007 |
| Financial Analyst | 4,690 | 5,217 |
| Project Manager | 4,630 | 5,150 |
| Business Analyst | 4,390 | 5,432 |
Employ in Germany
Employing in Germany
Onboarding employees in Germany will require employers to have knowledge of employment laws, statutory regulations, benefits, leaves, and allowances. This section will have the necessary information on the items previously mentioned.
Employee Contract
According to the German statutory laws, employment contracts are mandatory and to be provided by the employer with one month of employment. This contract will include all the information about the terms and conditions along with the benefit details to the employee. Employment contracts may be in any language but a German translation must always be provided and readily available.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 18 | Good Friday | National Holiday |
| April 21 | Easter Monday | National Holiday |
| May 1 | May Day | National Holiday |
| May 29 | Ascension Day | National Holiday |
| June 9 | Whit Monday | National Holiday |
| October 3 | Day of German Unity | National Holiday |
| December 25 | Christmas Day | National Holiday |
| December 26 | Boxing Day | National Holiday |
Local Holidays
| Date | Name | Localities |
| January 6 | Epiphany | BW, BY, ST |
| March 8 | International Women’s Day | MVP, B |
| April 20 | Easter Sunday | BB |
| May 8 | Anniversary of the End of World War II | B |
| June 8 | Whit Sunday | BB |
| June 19 | Corpus Christi | BW, BY, HE, NRW, RLP, SL, SN (community), TH (community) |
| August 15 | Assumption of Mary | SL, BY (community) |
| September 20 | German World Children’s Day | TH |
| October 31 | Reformation Day | BB, MVP, SN, ST, TH, SH, HH, NDS, HB |
| November 1 | All Saints’ Day | BW, BY, NRW, RLP, SL |
| November 19 | Repentance Day | SN |
Employee Leaves:
| Type of Leave | Duration | Mandatory |
| Annual Leave | 20 to 24 days | Yes |
| Sick Leave | 6 weeks | Yes |
| Maternity Leave | 14 weeks | Yes |
Leave Compliance
Payroll in Germany
Minimum wage
The minimum wage in Germany is 12.82 EUR per hour.
Overtime pay
The standard working hours in Germany are 8 hours per day and 48 hours per week. Overtime pay is to be determined by the employer.
How taxes work
Employer Payroll Tax
| Scheme | Employer’s Contribution |
| Health insurance | 7.3% |
| Pension insurance | 9.3% |
| Unemployment insurance | 1.3% |
| Long-term care insurance | 1.70% |
| LTC 1 Child | 1.70% |
| LTC 2 Children | 1.70% |
| LTC 3 Children | 1.70% |
| LTC 4 Children | 1.70% |
| LTC 5+ Children | 1.70% |
Employee Payroll Tax
| Scheme | Employee’s Contribution |
| Health insurance | 7.3% |
| Pension insurance | 9.3% |
| Unemployment insurance | 1.3% |
| Long-term care insurance | 1.525% |
| LTC 1 Child | 2.30% |
| LTC 2 Children | 1.70% |
| LTC 3 Children | 1.45% |
| LTC 4 Children | 1.20% |
| LTC 5+ Children | 0.70% |
Employee Income Tax
| Taxable Income (Euros) | Income Tax Rate |
| Up to 12,096 | 0% |
| From 12,097 to 68,480 | 14% – 42% |
| From 68,481 to 277,825 | 42% |
| Above 277,826 | 45% |
VAT
The Standard rate of Value Added Tax in Germany is 19%.
Bonus
13th Month Pay
There are no laws for 13th-month pay. The employer can determine to pay in mutual agreement.
Employee Benefits
- Social Security
- Healthcare and Insurance
- Maternity and Paternity leave
- Pension Scheme
- Unemployment Insurance
Employee offboarding
The employer has to provide a valid reason for termination of the employment. Moreover, after 6 months of employment, the employee is protected by the German Termination Protection Act. According to this act, an employee can be terminated based on the following categories;
- Personal situation (e.g., Long term Sickness)
- The behavior of the individual (e.g., fraud, theft)
- Business of the employer (if the employer decides to decrease the number of employees)
The notice period in Germany depends on the years of service provided by the employee;
| Length of Employment | Length of Notice Period |
| Less than 2 years | 4 weeks |
| 2-4 years | 1 month |
| 5-7 years | 2 months |
| 8-9 years | 3 months |
| 10-11 years | 4 months |
| 12-14 years | 5 months |
| 15-19 years | 6 months |
There are no statutory laws for severance pay. However, the employer has to give severance pay if the employee was terminated without notice.
Visa and
immigration
A Long term visa is mandatory for any individual. If the individual has an employment offer based in Germany, they can avail of a work authorization and residence permit. However, the following countries can directly apply for residence permits in Germany;
- EEA and EU Members
- Canada
- Israel
- Australia
- Japan
- New Zealand
- Korea
- Switzerland
Expand into
150+ countries
Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.
Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration