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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 labour 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 instalments on or before the last working day of each calendar month, payable in arrears.

Onboarding

We can help you get a new employee started in Germany fast.

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.

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9 Public holidays

Competitive benefits package in Germany

health_insurance
Health Insurance
dental_insurance
Dental Insurance
vision_insurance
Vision Insurance
mental_health_support
Mental health support
pension_or_401(k)
Pension or 401(K)
life_and_disability_insurance
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 travelling 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%

Grow your team in Germany with Remote

Want to employ workers in Germany? Companies hiring in Germany are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in Germany and keep you compliant. Remote can hire, onboard, and pay your Germany team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Germany. Sign up now to get started or talk to an expert for more details.

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.

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Transparent Pricing in Germany

Payroll

27

per employee/month
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  • Powerful, transparent international payroll
  • Simple self-service platform
  • Personalised support from dedicated specialists
  • Adhere to local payroll regulations in every country
  • Integrated payroll, expense management, and HRIS solution
Contractor Management

27

per contractor/month
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  • Only pay for contractors you actively work with
  • Work with international contractors
  • Create, edit, and sign tailored, localised contracts
  • Approve contractor invoices with one click or auto-pay
  • Transparent payments with complete visibility
Employer of Record

645

per employee/month
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  • Hire without opening a local entity in 90+ countries
  • Onboarding with a dedicated specialist
  • Local payroll paid on time, every time
  • Compliance protections built-in
  • Competitive, flexible and localised benefits
  • Dedicated in-house experts for local support
  • Includes HR Essentials as standard