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Talent Wiki - Germany

Your quick guide on talent and labor compliance norms in Germany




Euro (EUR)


Germany and English

Payroll Frequency


GDP per Capita


Employer Tax


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.

Local Universities

Top Local universities in Germany are:

Ludwig-Maximilians-Universität München


Local: 1

World: 93

Freie Universität Berlin


Local: 2

World: 104

Technische Universität München


Local: 3

World: 115

Ruprecht-Karls-Universität Heidelberg


Local: 4

World: 127

Ruhr-Universität Bochum


Local: 5

World: 151

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 6237.74
Accounting Manager 5,670 6014.96
Human Resources Manager 5,400 5728.54
Financial Analyst 4,690 4975.34
Project Manager 4,630 4911.69
Business Analyst 4,390 4657.09

Talent Sourcing Tips

Top Local Job Boards

Indeed, StepStone, Arbeitsagentur

Number of LinkedIn users


Multiplier Recruitment Partner


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 2023

Date Name Type
1 Jan New Year’s Day National holiday
7 Apr Good Friday National holiday, Christian
10 Apr Easter Monday National holiday, Christian
1 May Labor Day National holiday
18 May Ascension Day National holiday, Christian
29 May Whit Monday National holiday, Christian
3 Oct Day of German Unity National holiday
25 Dec Christmas Day National holiday, Christian
26 Dec Boxing Day National holiday, Christian

Employee Leaves

Type of Leave Duration Mandatory
Annual Leave 24 to 30 days Yes
Sick Leave 11 days Yes
Maternity Leave 14 weeks Yes


Payroll Cycle

According to Germany Statutory laws, the payroll cycle is Monthly.

Minimum Wage

The minimum wage in Germany is 12 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.


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


Employer Payroll Tax

Type of Contributions Contributions
Pension Insurance 9.3%
Unemployment Insurance 1.2%
Health Insurance 7.3%
Long term care insurance 1.525%
Insolvency Contribution 0.09%
Specific Supplementary Contribution 0.60%
Work Accident Scheme Depending on the type of industry, the employer has to contribute.

Employee Payroll Tax

Type of Contributions Contributions
Pension Insurance 9.3%
Unemployment Insurance 1.2%
Health Insurance 7.3%
Long term care insurance 1.525%
Specific Supplementary Contribution 0.60%
Church Tax 0% – 9%

Employee Income Tax

Annual income for Single Earning member (EUR) Annual income for Married Earning member (EUR) Tax Rate
0 – 10,347 0 – 21,264 0%
10,632 – 61,971 21,264 – 123,942 14%-42%*
61,971 – 277,825 123,942 – 555,650 42%
277,825 and above 555,560 and above 45%

*The taxable rate starts from 14% and progressively increases to 42%.


The Standard rate of Value Added Tax in Germany is 19%.

Offboarding & Termination

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;

  1. Personal situation (e.g., Long term Sickness)
  2. The behavior of the individual (e.g., fraud, theft)
  3. Business of the employer (if the employer decides to decrease the number of employees)

Four weeks of the notice period is mandatory for the employee. However, the number of days increases with years of service.

Years of Service Notice Period
Below 2 years 4 weeks
2 years to 5 years 8 weeks
5 years to 8 years 12 weeks
8 years to 10 years 16 weeks
10 years to 12 years 20 weeks
12 years to 15 years 24 weeks
More than 15 years 28 weeks

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 permit 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

Streamline payroll and compliance for your international workforce


Minimum Wage

Overtime Pay

Visa & Immigration