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germany

Hiring In Germany

Payment Guide

Salary Calculator

To calculate the salary and taxes in Germany please click here.

Minimum wage

What are the minimum wage requirements?

The national minimum wage in Germany is EUR 1,744.

Contributions & Taxes

How much are the contributions & taxes?

Individual income tax rates:

IncomeTax rate
Less than 9.984 EUR0%
9.985 – 58.596 EUR14% to 42%
58.597 – 277.825 EUR42%
More than 277.826 EUR45%

Employer tax contribution:

Type of insuranceContribution in %
Pension9.30%
Health7.30%
Long-Term Care1.53%
Unemployment1.20%
Maternitybetween 0.14% and 0.88%
Insolvency fund0.12 %
Work accident incurance~1.6%

Payroll

What is the payroll cycle?

The pay cycle in Germany is monthly and it’s usually paid on the 25th of month.

Is there 13th salary in Germany?

There is no mandatory rule for 13th salary, it depends on the employer who can pay 13th at the end of the year.

Labor Rules

What are the main Labor Rules?

Working hours

Work week is usually between 36 and 40 hours per week, 7 to 8 work hours per day with 30 minutes to 1 hour break. Work hours are limited to 48 per week. Work on Sunday or during public holidays is legally prohibited, this not applies to workers in service industries.

Probation period 

In Germany, probation period is usually 6 months.

Termination of employment

Termination of employment is regulated by The German Employment Protection Act. Employers must provide notice of dismissal in writing; a verbal notice is not sufficient. Employees should continue work till the end of notice period and will be paid in the same payroll cycle.

Notice Period

Notice period in Germany depends on length of employment. It can go from 4 weeks to a few months. 

  • Two years – 1 month’s notice, effective at the end of the month.
  • Five years – 2 months’ notice, effective at the end of the month.
  • Eight years – 3 months’ notice, effective at the end of the month.
  • Ten years – 4 months’ notice, effective at the end of the month.
  • Twelve years – 5 months’ notice, effective at the end of the month.
  • Fifteen years – 6 months’ notice, effective at the end of the month.
  • Twenty+ years – 7 months’ notice, effective at the end of the month.

Severance for Employees

There is no statutory severance in Germany. Employees are usually only entitled to severance payments under collective bargaining agreements. In practice, however, employers often compensate dismissed employees to avoid protracted negotiations over dismissals. The severance payment is usually around 50% of the monthly salary per year you have worked at the company. The actual amount, however, will depend on the circumstances of your dismissal and your company.

Leave and Benefits

Leave and Benefits rules

Holidays

Employees receive 25-30 days of holiday. Employers can provide additional days off if an employee is providing dangerous or intense work.

Sick Leave

Employee can be paid full salary for up to 6 weeks if he proves his leave with required medical documentation. After 6 weeks an employee can be entitled to sickness benefits.

Maternity/Parental Leave

Maternity leave is fourteen weeks (at least six weeks before and eight weeks after childbirth). In case of premature birth, multiple births, or if your child is found to have a disability maternity leave will be eighteen weeks. Parental leave is a legal entitlement to time off work, given to both mother and father.

Insurance

Health Security & Private Insurance

Government health providers offer medical services directly to patients. Benefits include general and specialist care, hospitalization, laboratory services, dental care, maternity care, and transportation.

* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*

Visa

Relocation and Work Permits

Native Teams will act as your Employer of Record and apply for your work permit in the country. You will be able to upload all the needed documents in our app. Native Teams will support you by giving you regular updates on the progress until you get your work and residence permit.

How long is the Visa / Work Permit process?

Current work permit processing time is 1 to 3 months.

Types of Visa:

  • Temporary Residence Permit for Employment Purposes
  • The EU Blue Card
  • Permanent Residence Permit

Which documents do you need?

  • Your passport.
  • Passport-size pictures. They must follow the ICAO visa photo guidelines.
  • The application form for a residence permit. In German: Antrag auf Erteilung eines Aufenthaltstitels.
  • Declaration on the Employment Relationship. This is known as the Erklärung zum Beschäftigungsverhältnis and has to be completed by your employer. You can find it on the website of the German Federal Agency for Work (the form is in German).
  • Your work contract or offer. It must state your position, the duration of your employment, as well as your salary.
  • The Certificate of Registration (Meldebescheinigung).
  • The housing lease along with a written confirmation letter of residency from your landlord.
  • Your university or college diploma. Original copy.
  • Proof of health insurance. If you have statutory insurance, submit the electronic health card and a confirmation of health insurance. If you have private health insurance, you must submit a certificate from your health insurance provider, proving that you have paid your contributions and mentioning the details of your insurance. We would recommend DR-WALTER’s health insurance plans!
  • A Curriculum Vitae (CV).
  • Bank statements.
  • Cover letter. It must state the reason you are applying, the work you will do, and give an introduction of yourself.
  • Any other required documents that the Ausländerbehörde may ask for.