Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Germany

Your quick guide on talent and labor compliance norms in Germany
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Capital
Berlin
Currency
Euro
Languages
German and English
Payroll Frequency
Monthly
GDP per Capita
$54,653
Employer Tax
20.645%

Supplementary Guide for Employment and Expansion in Germany

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:

Technische Universität München

RANKING

Local : 1

World : 82

Ruprecht Karls Universität Heidelberg

RANKING

Local : 2

World : 99

Karlsruhe Institute of Technology (Universität Karlsruhe)

RANKING

Local : 3

World : 154

Ludwig Maximilians Universität München

RANKING

Local : 4

World : 163

Universität Hamburg

RANKING

Local : 5

World : 168

Salary Data

The table below provides the average salary data for Germany.

Job Title Average Salary (EURO) Average Salary (USD)
Business Development Manager 5,880 6,520.08
Accounting Manager 5,670 6,287.22
Human Resources Manager 5,400 5,987.83
Financial Analyst 4,690 5,200.54
Project Manager 4,630 5,134.01
Business Analyst 4,390 4,867.88

Talent Sourcing Tips

Top Local Job Boards:

Indeed, StepStone, Arbeitsagentur

Number of LinkedIn users:

13,330,000

Multiplier Recruitment Partner

iXceed

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

DateNameType
1 JanNew Year's DayNational holiday
6 JanEpiphanyObservance, Christian
6 JanEpiphanyCommon local holiday
22 JanFranco-German DayObservance
27 JanRemembrance DayObservance
14 FebValentine's DayObservance
16 FebHizir FastObservance
28 FebShrove MondayObservance
1 MarCarnival / Shrove Tuesday / Pancake DayObservance
2 MarCarnival / Ash WednesdaySilent Day
8 MarInternational Women's DayObservance
8 MarInternational Women's DayCommon local holiday
17 MarSt. Patrick's DayObservance, Christian
18 MarAnniversary of the March RevolutionObservance
20 MarMarch EquinoxSeason
21 MarAlevitic New YearObservance
27 MarDaylight Saving Time startsClock change/Daylight Saving Time
10 AprPalm SundayObservance, Christian
14 AprMaundy ThursdayObservance, Christian
14 AprMaundy ThursdaySilent Day
15 AprGood FridayNational holiday, Christian
16 AprHoly SaturdaySilent Day
16 AprFirst Day of PassoverObservance, Hebrew
17 AprEaster SundayObservance, Christian
17 AprEaster SundayChristian, Common local holiday
17 AprSecond Day of PassoverObservance, Hebrew
18 AprEaster MondayNational holiday, Christian
21 AprSixth Day of PassoverObservance, Hebrew
22 AprSeventh Day of PassoverObservance, Hebrew
23 AprGerman Beer DayObservance
28 AprGirls' Day / Boys' DayObservance
30 AprWalpurgis NightObservance
1 MayMay DayNational holiday
3 MayEid ul FitrObservance, Muslim
5 MayEurope Day (Council of Europe)Observance
8 MayMother's DayObservance
8 MayEnd of World War II AnniversaryObservance
9 MayEurope Day (European Union)Observance
23 MayConstitution DayObservance
26 MayFather's DayObservance
26 MayAscension DayNational holiday, Christian
1 JunInternational Childrens' DayObservance
3 JunEuropean Bicycle DayObservance
5 JunWhit SundayChristian, Common local holiday
5 JunWhit SundayObservance, Christian
5 JunFirst Day of ShavuotObservance, Hebrew
6 JunWhit MondayNational holiday, Christian
6 JunSecond Day of ShavuotObservance, Hebrew
16 JunCorpus ChristiChristian, Common local holiday
17 JunRemembrance of the Victims of SED InjusticeObservance
19 JunCar-free SundayObservance
21 JunJune SolsticeSeason
24 JunSt. JohnObservance, Christian
25 JunArchitecture DayObservance
29 JunSt Peter and PaulObservance, Christian
10 JulEid ul AdhaObservance, Muslim
8 AugPeace Festival in AugsburgLocal holiday
8 AugAshura (Tentative Date)Observance, Muslim
15 AugAssumption of MaryChristian, Common local holiday
15 AugAssumption of MaryObservance, Christian
1 SepAnti War DayObservance
10 SepGerman Language DayObservance
11 SepEuropean Heritage DaysObservance
20 SepGerman World Children's DayObservance
20 SepGerman World Children's DayCommon local holiday
23 SepSeptember EquinoxSeason
26 SepRosh HashanaObservance, Hebrew
27 SepSecond Day of Rosh HashanaObservance, Hebrew
1 OctGerman Food Bank DayObservance
2 OctHarvest FestivalObservance
3 OctDay of German UnityNational holiday
5 OctYom KippurObservance, Hebrew
9 OctGrandparents' DayObservance
10 OctFirst day of SukkotObservance, Hebrew
11 OctSecond Day of SukkotObservance, Hebrew
15 OctSixth Day of SukkotObservance, Hebrew
16 OctSeventh Day of SukkotObservance, Hebrew
17 OctShemini AtzeretObservance, Hebrew
18 OctSimchat TorahObservance, Hebrew
28 OctWorld Thrift DayObservance
30 OctDaylight Saving Time endsClock change/Daylight Saving Time
31 OctReformation DayCommon local holiday
31 OctReformation DayObservance, Christian
31 OctHalloweenObservance
1 NovAll Saints' DaySilent Day, public holiday
1 NovAll Saints' DayObservance, Christian
2 NovAll Souls' DaySilent Day
9 NovNight of Broken Glass Remembrance DayObservance
9 Nov9th of NovemberObservance
9 NovFall of the Berlin WallObservance
11 NovSt. Martin's DayObservance, Christian
13 NovNational Day of MourningSilent Day
16 NovRepentance DayChristian, Common local holiday
16 NovRepentance DayObservance, Christian
16 NovRepentance DaySilent Day
20 NovSunday of the DeadSilent Day
27 NovFirst Advent SundayObservance, Christian
4 DecSecond Advent SundayObservance, Christian
6 DecSaint Nicholas DayObservance, Christian
8 DecFeast of the Immaculate ConceptionObservance, Christian
11 DecThird Advent SundayObservance, Christian
18 DecFourth Advent SundayObservance, Christian
19 DecRemembrance Day for Roma and Sinti killed by GenocideObservance
21 DecDecember SolsticeSeason
24 DecChristmas EveSilent Day
25 DecChristmas DayNational holiday, Christian
26 DecBoxing DayNational holiday, Christian
31 DecNew Year's EveBank holiday

Payroll

Payroll Cycle

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

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Minimum Wage

The minimum wage in Germany is 9.82 EUR per hour and is subjected to change to 10.45 EUR per hour after 1st July 2022.

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Overtime Pay

Overtime pay is to be determined by the employer. However, the overtime is limited to 60 hours per week.

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Health Examination Clause

Bonus

13th Month Pay

There are no laws for 13th-month pay. The employer can determine to pay in mutual agreement.

Employee Benefits

German employees get to avail of the following benefits during their employment:

  • ~Social Security
  • ~Healthcare and Insurance
  • ~Maternity and Paternity leave
  • ~Pension scheme
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Taxes

Employer Payroll Tax

Details Contributions
Pension Insurance 9.3%
Unemployment Insurance 1.2%
Health Insurance 7.3%
Long term care insurance 1.525%
Insolvency Contribution 0.12%
Specific Supplementary Contribution 0.60%
Work Accident Scheme Depending on the type of industry, the employer has to contribute.

Employee Payroll Tax

Details 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 Annual income for Married Earning member Tax Rate to contribute
Ranges from 0 - 9,744 Ranges from 0 - 19,488 0%
Ranges from 9,745 - 57,918 Ranges from 19,489 - 115,836 14%-42%*
Ranges from 57,919 - 274,612 Ranges from 115,837 - 549,224 42%
274,612 and above 549,224 and above 45%

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

VAT

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

Offboarding & Termination

Termination Process

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)

Notice Period

Four weeks of 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

Severance Pay

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
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