Overview

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

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Taxes

Employer
9.30% - Pension
7.30% - Health Insurance
1.50% - Unemployment Insurance
1.28% - Nursing Care Insurance
1.18% - Accident Insurance
Employee
9.30% - Pension
7.30% - Health Insurance
1.50% - Unemployment Insurance
1.28% - Nursing Care Insurance
0.00% - Up to 9,000
14.00% - 9,000 - 55,961
42.00% - 55,961 - 265,327
45.00% - Over 265,327

Minimum Wage

General
The minimum wage is 1,473 EUR. ($1728.63)

Working Hours

General
Full time work is considered 40 hours weekly.

VAT

General
19% standard rate.

Mandatory Benefits

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

Payroll

General
Salaries are paid on monthly basis, unless stated otherwise in the employment contract, the pay date is the last day of each month.

Termination

Termination Process
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.
Advance Notice
Advance notice must be minimum 4 weeks.
Severance Pay
Half month of the regular wages are paid for every year the employee was in the company.