Germany is known for its beer, sausages and beautiful castles. Not only is it a robust economy, it’s also famous for Oktoberfest and music composers. Today, it’s home to a highly skilled and qualified workforce. Let us show you why and how you can hire and manage your remote team from Germany.
If you’re considering hiring your next candidate in Germany, you’ve landed in the right place. After helping hundreds of businesses onboard their remote hires, we have achieved excellent expertise in the country. Our team of experts and tech solutions will make this incredibly easy for you.
Fast-track your talent onboarding while ensuring 100% compliance with local regulations
Calculate net salary in Germany post deductions and compare it with the salary in other countries instantly
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Receive process support by an experienced team of experts & pay your talent on time and in their local currency
Easily onboard your remote talent in Germany through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
Germany's working professionals' greatness can be attributed to their expertise, precision, strong work ethic, collaborative nature, and commitment to continuous improvement. These qualities contribute to their economic success and its reputation as a global leader in various industries.
German professionals are known for their strong educational background and extensive training in their respective fields. The country's emphasis on quality education and vocational training produces highly skilled and knowledgeable professionals.
Germans are renowned for their precision and attention to detail, especially in industries like engineering, manufacturing, and automotive. This meticulous approach ensures the production of high-quality products and services.
Despite their reputation for precision, German professionals are also highly innovative and creative with a strong work ethic. They contribute to cutting-edge research and developments across various industries.
The Federal Republic of Germany is made up of 16 states (Bundesländer), that are guaranteed self-government except as otherwise provided by the Basic Law. Federal law takes precedence over state law. Geographically, Germany extends over 357,114 square kilometers. The country shares borders with Austria, Belgium, the Czech Republic, Denmark, France, Luxembourg, Netherlands, Poland, and Switzerland. Ranked fourth globally, Germany is the leading economic power in Europe. The services sector accounts for 72% of the workforce, followed by the industrial sector at around 26.8%.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Germany.
The national holidays mentioned below are valid for the year 2023.
The Public Holidays Acts of the individual federal states determine the dates of public holidays in those states. Nine public holidays are legally protected nationwide.
|January 1||New Year’s Day|
|April 7||Good Friday|
|April 10||Easter Monday|
|May 1||Labor Day|
|May 18||Ascension Day|
|May 29||Whit Monday|
|October 3||Day of German Unity|
The approximate time for sharing the contract with an employee in Germany is 4 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
is the maximum working time per week
is maximum allowed hours for expectant and nursing mothers, employees or trainees under 18 years
is the rest period per day
The statutory minimum leave entitlement is 24 days per calendar year for six-day workweeks. Based on office days (Arbeitstage), the minimum leave is 20 office days per calendar year, not counting Saturday, Sunday and public holidays.
Full entitlement to leave is acquired only after the employment relationship has been in existence for six months.
The following social security deductions are payable by the employer:
* The amounts vary by the industrial sector.
|Benefits||Employer Rate (% of total earnings)||Ceiling|
|Pension||9.3%||€7,300.00 per month (€7,100 for East Germany)|
|Unemployment insurance||1.3%||€7,300.00 per month (€7,100 for East Germany)|
|Health insurance||7.3%||€4,987.50 per month|
|Long-term care insurance||1.7%||€4,987.50 per month|
|Work Accident insurance||1.3% average*||-|
|Insolvency contribution||0.06%||€85,200 annually (€80,400 for East Germany).|
The services of the state health insurance system are normally provided as cash benefits or as benefits in kind. Insured parties are entitled to:
State accident insurance is compulsory for workers. It covers accidents at work, accidents on the way directly to and from work, and the consequences of occupational diseases. The premium is determined according to respective risk classes within an industry.
If unemployment is a result of an accident at work or an occupational disease, and the employee’s ability to work is curtailed by at least 20% for more than 26 weeks following the event leading to the claim, they are eligible to receive a pension.
After having worked for at least 12 months in the last 30 months in Germany, the employee is entitled to receive unemployment benefits to the amount of 60-70% of the previous average income from the Federal Employment Agency for six months. The amount depends on the extent of the reduction in the employee’s fitness for work and their earnings over the 12 calendar months prior to the insurance claim. The duration of payments can be longer depending on the length of service.
The statutory retirement age is gradually increasing and for those born in 1964 or later, the statutory retirement age is 67. A special service pension is paid with 45 years of contribution at age 65 for those born in 1964 or later.
Participation in the public retirement insurance system is mandatory for employees. Employees with less than five years’ contributions earn no benefit. According to the type of pension, the qualifying period for pension entitlement varies. Insured parties can apply for an early pension from the age of 63 if they can prove 35 years of qualifying pension contributions. As compensation for the longer pension period, for each month up to the statutory retirement age (severely disabled people, up to 65), the pension is reduced by 0.3%.
If an accident at work or an occupational disease leads to the death of the insured person, the insurance will pay the funeral expenses (funeral payment).
If an employee dies following an accident at work or an occupational disease, a survivor’s pension is paid to the surviving spouse or civil partner.
Due to the ongoing COVID -19 pandemic, parents with statutory health insurance will continue to receive sick pay for each child with statutory health insurance for up to 30 working days (single parents up to 60 working days) per year in 2023 if:
The entitlement is limited to a total of 65 working days or 130 working days for single parents. In the case of children with disabilities and those in need of help who are legally insured, the insured parents are entitled to sick pay without age limit.
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