Hire employees in Germany, hassle-free

Onboard a new employee with Deel in less than 1 business day, with just a few clicks. First, the client signs the Master Service agreement on Deel, their employee’s onboarded by the EOR, and that's it. Now you’re hiring compliantly.

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Employee - Germany

Hire employees in Germany No entity needed.

Usually, to hire in Germany,  your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months. 

‍Germany also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Germany quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Germany built right in

Deel allows you to provide localized benefits for employees in Germany within minutes. All in one manageable online dashboard.
  • Health Insurance
  • Pension
  • Worker Compensation Insurance
  • Unemployment Insurance
  • Nursing Care Insurance

Contents


    Speak to our team about how to compliantly hire in Germany

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    Quick Overview

    Currency: Euro (EUR)

    Capital: Berlin

    Official language: German

    Payroll Cycle: Monthly

    Statutory Holidays

    Paid Time Off

    Full time employees are entitled to 20 days of paid holiday. However, It is common practice to grant 5 or even 6 weeks of annual paid leave. Deel grants 25 days of paid time off.

    Public Holidays

    • New Year’s Day
    • Good Friday
    • Easter Monday
    • Labor Monday
    • Ascension Day
    • Whit-Monday
    • German Unity Day
    • Christmas Day
    • St. Stephen's Day

    Between 10 and 13 bank holidays. Additional regional holidays may also apply.

    General Taxation

    Individual Income Tax

    For the individual income tax, the average ranges up to 45% and depends on many variables, such as marital status, level of income, and other categories.

    Employer Cost

    Employer tax is approximately 21% of employee salary.

    Additional information

    Employment Contract Details

    There are no specific rules governing the language for employment contracts as long as the employee understands the contract language. A bilingual contract is recommended.

    Contracts must be in writing and detail certain aspects of employment including any reference to applicable collective bargaining agreements.

    Probation Period

    The maximum probation period is 6 months.

    Minimum Wage Requirements

    The minimum wage is EUR 1,664 gross per month.

    Maximum working hours and overtime

    An average working week is considered to be 38-40 hours. Workdays are typically 8 hours and should not exceed 10 hours.

    There is a statutory maximum of 48 work hours per week as average in any 6-month period.

    Bonus and Expense Payment

    Bonuses are common and should be specified in the contract.

    Parental Leave

    Parents are entitled up to 3 years of parental leave, which is paid by the government for 12 months. It can reach to 14 months if the other parent accepts a pay cut up to 67% of their net pay. An additional 24 months of unpaid parental leave possible with full protection of the workplace and right to return to work.

    • Maternity leave: starts 6 weeks before birth paid at full salary by the employer. A further maternity leave period of 8 weeks after childbirth, is paid as a maternity allowance from the statutory health insurance fund or the Federal Insurance Office. If the employee’s net remuneration of the last 3 months exceeds the maternity allowance, the employer must pay the difference to the employee.
      The employer may be able to recover certain amounts from the authorities.
    • Paternity leave: one day off with continued pay for the birth of his child, funded by the employer. Further provisions regarding parental allowance plus apply to both female and male employees.

    Sick Leave

    Employees are entitled to receive the full remuneration from their employer for up to 6 weeks of sickness, subject to certain conditions. Afterwards they can apply for sick pay with the statutory health insurance for up to 78 weeks.

    Termination requirements for employees in

    During probation period the contract may be terminated by either party at will by giving two weeks notice.

    Dismissal for a serious cause subject to certain conditions is allowed. However, a justification for dismissal must exist otherwise the employee can challenge the dismissal in court.

    Severance costs are generally 0.5 months salary for each year worked. Additionally, any not taken holidays must be paid out upon termination.

    Notice Period

    The notice period highly varies and is based on the length of the labor relationship, the minimum is 2 weeks notice. After 20 years of employment it can reach to 7 months notice.

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    5 Stars

    Deel is the best!!

    “Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”

    Manuela Echeverry
    Nov 20, 2020
    5 Stars

    A contracting life-changer!

    "This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."

    Kix Panganiban
    Dec 3, 2020
    5 Stars

    Great service offering!!

    "The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."

    Michael US
    Oct 28, 2020
    5 Stars

    Terrific service

    "Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"

    Nunzio Martinello
    Dec 15, 2020
    5 Stars

    Deel is a game-changer for distributed teams

    "Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"

    Jeremie Habib
    Nov 16, 2020
    5 Stars

    Great app with great customer service

    "Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!"

    Felipe Marote
    Jan 29, 2021