Remote’s guide to employing in

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  • Capital city


  • Currency

    Euro (€, EUR)

  • Languages


  • Population size


Services available in this country:
Global Employment ServicesContractor Management

Facts & Stats

Germany Map Illustration
  • Capital city


  • Currency

    Euro (€, EUR)

  • Languages


  • Population size


  • Ease of doing business

    Very easy

  • Cost of living index

    $$$$ (32 of 139 nations)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    1.425% (2018 est.)

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.

Grow your team in Germany with Remote

Looking to employ workers in Germany? Companies hiring in Germany must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Germany on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Germany team. You can also pay contractors now in Germany with Remote.

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.

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

The minimum hourly wage stipulate by law for 2023 is €12. A higher minimum is often set by collective bargaining agreements, which are enforceable by law.

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 4 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

Sunday, January 1, 20231New Year's Day (Neujahrstag)
Friday, April 7, 20232Good Friday (Karfreitag)
Monday, April 10, 20233Easter Monday (Ostermontag)
Monday, May 1, 20234Labour Day (Tag der Arbeit)
Thursday, May 18, 20235Ascension Day (Christi Himmelfahrt)
Monday, May 29, 20236Whit Monday (Pfingstmontag)
Tuesday, October 3, 20237Germany Unity Day (Tag der Deutschen Einheit)
Monday, December 25, 20238Christmas Day (Weihnachstag)
Tuesday, December 26, 20239St. Stephen’s Day (Zweiter Weihnachtsfeiertag)

Competitive benefits package in Germany

Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe. Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they call home.

Our benefits packages in Germany are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • 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.

Taxes in Germany

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Germany.

  • 9.30%


  • 7.95%

    Health Insurance

  • 1.7%

    Nursing Care Insurance

  • 1.25%

    Unemployment Insurance

  • 1.18%

    Accident Insurance

  • 2.75%

    Sickness/maternity leave allocation

Types of Leave

All full-time workers are entitled to 10 paid public holidays per years. Full-time workers are also entitled to at least 20 days of paid time off if they work five-day work weeks or 24 days of paid time off if they work six-day work weeks. Employers may offer additional paid vacation days at their discretion.

Employment termination

Termination process

Germany employers in general can provide any fair reasons for termination of an employee. Any dismissal from the end of the employer for an employee that has been employed longer than six months has to be "socially justified" by the following:

  • Person-related reasons, such as long-term illness;

  • Termination with consent of the employee through a termination agreement; or

  • Conduct-related reasons, for example repeated breaches of employment terms after prior warning or serious misconduct

Notice period

The statutory notice period for an employer depends on the duration of employment, with a two-week notice during a six-month probation period, and after probation period, a minimum of four weeks for those employed within 2 years of service and up to 7 months for those employed more than 20 years.

Probation periods

The maximum length of a probationary period is 6 months.

During the probationary period, the applicable statutory notice period can be reduced to a minimum of two weeks, except as otherwise provided in other applicable regulations (e.g. a collective bargaining agreement). During the probationary period, the employer does not need a reason for termination to dismiss the employee. A termination during the probationary period is only ineffective if it is immoral or contrary to faith.