Employer of Record & Payroll Services

Employing In Germany

Employment law in Germany is not contained under a single law. Instead it is governed by statutory regulations codified in (among other laws) the German Civil Code, then furthermore governed by various federal acts such as the Part-time and Fixed-term Work Act, Employee Leasing Act, Holidays Act, Act on Maternity Protection and the Dismissal Protection Act. Furthermore, collective labour law through codetermination, trade unions and collective bargaining plays a role.

German employment law provides strong labor conditions and protections for employees, so employing people will generally be an important investment and commitment.

Temporary agencies are popular options for more flexible workforce arrangements. For these and many other reasons, the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Germany.

Minimum Wage

From January 1, 2025, the minimum wage is €12.82 gross per hour, or €26,768.16 annually for full-time employees.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Germany fast. The minimum onboarding time we need is only 5 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

9 Public holidays

2025-01-01
2025-04-18
2025-04-21
2025-05-01
2025-05-29
2025-06-09
2025-10-03
2025-12-25
2025-12-26

New Year's Day (Neujahr)
Good Friday (Karfreitag)
Easter Monday (Ostermontag)
Labor Day (Tag der Arbeit)
Feast of the Ascension of Jesus Christ (Christi Himmelfahrt)
Pentecost Monday (Pfingstmontag)
German Unity Day (Tag der Deutschen Einheit)
First Day of Christmastide (Erster Weihnachtsfeiertag)
Second Day of Christmastide (Zweiter Weihnachtsfeiertag)

Competitive benefits package in Germany

Health Insurance

Dental Insurance

Vision Insurance

Mental health support

Pension or 401(K)

Life and Disability Insurance

Local market insights

In Germany, only 10%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)

The country has a robust public health system, and while supplemental health insurance is not the norm today, it provides employees with access to a wider range of options for providers and specialists, as well as shorter wait times. Our plans also offer global coverage (excluding the US) to protect your employees when they are traveling outside their home country.

Our core benefits (which often include things like healthcare) are required in most countries where we hire. We do not require customers to offer benefits in Germany due to its strong public system and local laws that protect us (and you!) against claims of non-discriminatory hiring practices. However, we do recommend that employers in Germany offer benefits to their employees based on market standards. Note that we do not add a markup on any benefits premiums or administration costs.

If you'd like specific information about our benefits packages in Germany, start onboarding your first employee with Remote today.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Facts & Stats

Germany (German: Deutschland), officially the Federal Republic of Germany (German: Bundesrepublik Deutschland), is a country in Central and Western Europe. Germany is a great power with a strong economy; it has the largest economy in Europe, the world's fourth-largest economy by nominal GDP, and the fifth-largest by PPP. As a global leader in several industrial and technological sectors, it is both the world's third-largest exporter and importer of goods.

Capital City

Berlin

Currency

Euro

Languages

German

Population size

83,149,300

Ease of doing business

Very easy

Payroll frequency

Monthly

VAT - standard rate

19%

Risks of misclassification

Germany, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Germany may lead to fines and penalties for the offending company.

Payroll

29

per employee/month

Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution

Contractor Management

29

per contractor/month

Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility

Employer of Record

699 599