Overview

Capital
Berlin
Currency
Euro (€) (EUR)
Date Format
dd/mm/yyy

Taxes

Employer

Employer Payroll Tax

9.30%
Pension
7.30%
Health Insurance
1.25%
Unemployment Insurance
1.525%
Nursing Care Insurance
1.18%
Accident Insurance
20.56% Total Employment Cost
Employee

Employee Payroll Taxes

9.30%
Pension
7.30%
Health Insurance
1.25%
Unemployment Insurance
1.525%
Nursing Care Insurance
19.33% Total Employee Cost

Employee Income Tax

0.00%
Up to 9,000
14.00%
9,000 - 55,961
42.00%
55,961 - 265,327
45.00%
Over 265,327
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
Uruguay
Czech Republic
Germany
Chile
Myanmar
South Africa
66.17%
34.12%
34%
20.56%
3.35%
3%
2%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Netherlands
Montenegro
Germany
Indonesia
Azerbaijan
Myanmar
45%
27.65%
24%
19.33%
4%
3%
2%

Minimum Wage

General

Minimum wage in Germany is €9.35 per hour.   

Minimum wage (per month)
$2391
$2025
$1996
$1670
$49.14
$47
$41
Luxembourg
Victoria
New South Wales
Germany
Jamaica
Malawi
Ghana
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are paid monthly at the end of the month, typically around the 25th.  

Working Hours

General

A work week varies between 38-40 hours. Workdays are typically 8 hours and should not exceed 10 hours.

Overtime

Overtime payment is only required when stated in employees’ individual contracts or collective labor agreements.

Payroll Contributions

Social Security

Employers contribute 20.55% of workers wages. Employees contribute 19.37% of their salary.

Pension Fund

› First pillar: mandatory state pension insurance (gesetzliche Rentenversicherung). This is part of the basic social security system. All employees and employers pay a percentage of salaries into this system (about 9.5% dependent on the region). › Second pillar: voluntary occupational pension insurance. › Third pillar: private insurance. Common practice for private insurance is monthly employee contribution of up to 4% their gross salary and employer contribution of 4% of the gross salary by standard plus half the percentage of the employee’s contribution (maximum 6% employer contribution in total).

Leave

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Myanmar
Austria
Brazil
Germany
Trinidad & Tobago
Shanghai
Federal
30
16
46
30
13
43
30
13
43
24
9
33
13
13
11
11
10
10
Public Holidays

German holidays differ based on the state. However, there are 9 national holidays that all states follow.

Maternity Leave

Mothers are entitled to 6 weeks leave at full pay prior to their child’s birth, and eight weeks at full pay after birth. In the case of premature or multiple births, 12 weeks paid leave is permitted. After six weeks the insurance provider will cover the fees.

Maternity leave (days)
410
365
365
98
50
45
0
Bulgaria
Montenegro
Serbia
Germany
Qatar
United Arab Emirates
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Paternity leave falls under the parental leave.

Parental Leave

Parental leave is leave of 36 months till the child turns three. This leave can be divided as chosen between the parents. The eight weeks of maternity leave is counted towards this. During parental leave, parents can choose to work part-time up to 30 hours per week.

Termination

Termination Process

Termination is monitored by the German Employment Protection Act (Kündigungsschutzgesetz) and provides protection to employees by ensuring dismissals are justified. 

Notice Period

An employer must notify the employee with a written notice 4 weeks prior. If the employee has been in the company for over 20 years, the termination notification period becomes 7 months.

Severance Pay

Severance payment is not mandatory if a justified reason and proper notice is given for the termination.  However, severance payment must be given for termination caused by operational changes. When severance payment is given, it is a half month of the employee’s regular wage for every year the employee was in the company.

VAT

General

19% standard rate.

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