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Payroll and Benefits Guide Germany

Last updated: Mar 03, 2026

Currency
Euro (EUR)
Employer Taxes
21.84%
Payroll Frequency
Monthly
Employee Costs
20.30%
Capital
Berlin
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Payroll Contributions
7.3% + half of the Zusatzbeitrag (avg. ~0.85% each side in 2025; actual varies by fund).
Health insurance (KV), applied on salary up to 5,512.50 EUR per month (an additional percentage can apply depending on employee’s chosen insurance).
9.30%
Pension Insurance (RV), applied on salary up to 8,050 EUR monthly in all Federal States.
1.30%
Unemployment Insurance (AV), applied on salary up to 8,050 EUR monthly in all Federal States.
1.70% Long-Term Nursing Care Insurance (Pflegeversicherung – employer share), applied on salary up to €5,512.50 per month. The total PV rate is currently 3.4% for members with at least one child and 4.0% for childless members (the child-related differentiation applies on the employee side).
0.64%
Disability insurance (U1), Maternity insurance (U2), and Insolvency insurance (U3). The percentage is subject to change depending on the employing entity.
1.50%
Accident Insurance
22.70% (approx.)
Total Employment Cost (based on the example contribution rates above; actual cost varies by health fund, PV category and accident class)
Employee Payroll Contributions
7.30%+ 0.80%*
Health insurance (KV) Health insurance (KV), applied on salary up to 5,512.50 EUR per month (an additional percentage can apply depending on employee’s chosen insurance).
ER 1.7% (Saxony 1.2%); EE 1.7% (+0.6% childless); child-number reductions apply per statute. Long-Term Nursing Care Insurance (PV), applied on salary up to 5,512.50 EUR per month. The % varies with the number of children:

– For Employees without children – 2.40% (2.9% in Saxony)
– For employees with 1 child the rate is – 1.80% (2.3% in Saxony)
– For employees with 2 children the rate is – 1.55% (2.05% in Saxony)
– For employees with 3 children the rate is – 1.30% (1.8% in Saxony)
– For employees with 4 children the rate is – 1.05% (1.55% in Saxony)
– For employees with 5 children the rate is – 0.80% (1.3% in Saxony)
Self employed workers must pay – 3.40%
9.30%
Pension Insurance (RV), applied on salary up to 8,050 EUR monthly in all Federal States.
1.30%
Unemployment Insurance (AV), applied on salary up to 8,050 EUR monthly in all Federal States.
20.30% 
Total Employee Cost

 

Employee Income Tax
Single Persons Tax rate
0.00%
Up to 12,096 EUR
14.00%
12,096 EUR to 68,429 EUR
42.00%
68,430 EUR to 277,825 EUR
45.00%
277,826 EUR and over
Married Persons Joint Return Tax Rate
0.00%
up to 24,192 EUR
14.00%
from 24,194 to 136,960 EUR
42.00%
from 136,962 to 555,650 EUR
45.00%
more than 555,650 EUR
  • Church Tax (when registering in Germany, declaration of region is requested, should this be Protestant, Catholic or Jewish there is a liability to pay the church tax, which the tax office collects on behalf of religious organizations in Germany. It is currently 8% in Bavaria and Baden-Württemberg and 9% in all other federal states. If there is no declared religion, there is no church tax to pay).
  • Solidarity surcharge: 5.5% of the income tax if the income tax exceeds EUR 19,950 (single/Separately assessed taxpayers) or EUR 39,900 (married/joint tax assessment)

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

Germany’s minimum wage is €12.82 (Jan 1, 2025). It will rise to €13.90 on Jan 1, 2026, and €14.60 on Jan 1, 2027

However, many different minimum rates are depicted in industry-specific Collective Bargaining Agreements.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Germany the payroll frequency is monthly and paid typically on or around the 25th of the month.

13th Salary

13th-month salary payments are customary in Germany and are paid on the December pay date.

Working Hours

General

The standard working week in Germany is 40 hours per week, 8 hours per day. The work week can be no longer than 48 hours, 10 hours per day if, within six months or 24 weeks, the overall average working time does not exceed eight hours per day.

Overtime

The Arbeitszeitgesetz sets the legally permissible maximum working time, which applies to all overtime hours worked:

Maximum Daily Hours: Employees may not work more than 8 hours per day.

Extension Limit: The daily working time may be extended to 10 hours only if the average working time does not exceed 8 hours per day within a reference period of six calendar months or 24 weeks.4

    • Note: Assuming a six-day work week (the legal basis for the ArbZG), this means the maximum weekly limit is 48 hours on average.

Rest Periods: An employee must be granted a minimum continuous rest period of 11 hours after the end of daily work.6

Employer Obligation: Employers are legally required to record all hours worked by employees, including overtime, to ensure compliance with these limits.7

Overtime Compensation

Unlike many other countries, there is no statutory law that dictates a mandatory premium pay rate (e.g., 150%) for standard overtime hours.8

  • Source of Compensation: Compensation for overtime (Überstunden) is determined by:

    1. Collective Bargaining Agreements (Tarifverträge): These agreements often stipulate specific overtime compensation (either pay or time off) and premium surcharges (e.g., 25%).9 Where applicable, they take precedence.

    2. Works Agreements (Betriebsvereinbarungen):10 Agreements made between the employer and the works council.11

    3. Individual Employment Contracts: If no collective agreement applies, the contract must define how overtime is compensated.12

  • Compensation Method: Overtime must generally be compensated, either through:

    • Financial Payment: At the employee’s regular hourly wage, unless a premium surcharge is agreed upon.13

    • Compensatory Time Off (Freizeitausgleich): The employee receives paid time off to make up for the hours worked.14 This must be agreed upon.

  • Exclusion Clauses (Salaried Employees): For employees earning above a high annual salary threshold (which is adjusted periodically and tied to the social security contribution ceiling) or for senior managerial staff, employment contracts may legally state that a certain amount of overtime is compensated by the regular monthly salary.15 However, general clauses that attempt to dismiss all overtime payment without specifying a clear limit are often held to be void by labour courts.

Special Premiums (Statutory Exceptions)

The Arbeitszeitgesetz does provide specific protections and compensation requirements for non-standard work:

Work Condition Compensation Principle Formal Note
Sunday Work Generally prohibited (with specific industry exceptions like healthcare, catering, etc.). Must be compensated with a full day of rest within two weeks. Premium pay is not legally mandated but is common via agreements.
Public Holiday Work Generally prohibited (with specific industry exceptions). Must be compensated with a full day of rest within eight weeks. Premium pay is not legally mandated but is common via agreements.
Night Work (11 PM to 6 AM) Entitlement to an “appropriate” number of paid days off or an “appropriate” pay bonus (Nachtarbeitszuschlag). The rate is often set at 25% of the hourly wage through agreements.

Leave

Annual Leave (vacation)

The statutory minimum entitlement of annual leave is 20 working days per year for employees working a regular 5-day week, and 24 working days per year for those working a regular 6 day week, as set by the Bundesurlaubsgesetz – the Federal Holidays Act.

Entitlement for paid vacation is called Urlaubsanspruch. The Urlaubstage number is listed in the employment contract or collective agreement (Tarifvertrag), depending on the type of industry.

Many collective agreements increase this entitlement to 30 working days, and employees that work in dangerous or high-risk environments are often entitled to additional leave.

PTO carryover

In Germany, statutory annual leave must generally be taken in the same year, but unused leave carries over automatically if it couldn’t be taken for valid reasons (e.g., illness, operational needs). Carried-over leave must usually be used by 31 March of the following year — and if the employer failed to properly inform the employee and enable leave-taking, the leave may not expire at all.

  • For GoGlobal, PTO carryover is allowed
  • For Global People, employees are entitled to 20 days of vacation per year. The carried‑over vacation must be used by March 31 of the following year, otherwise it is forfeited

Public Holidays

Public holidays that fall on the weekend are usually lost.

Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
6 January 2026 Tuesday Epiphany
8 March 2026 Sunday International Women’s Day
3 April 2026 Friday Good Friday Standard holiday
5 April 2026 Sunday Easter Sunday
6 April 2026 Monday Easter Monday Standard holiday
1 May 2026 Friday Labour Day Standard holiday
14 May 2026 Thursday Ascension Day Standard holiday
24 May 2026 Sunday Whit Sunday
25 May 2026 Monday Whit Monday Standard holiday
4 June 2026 Thursday Corpus Christi
8 August 2026 Saturday Augsburg Peace Festival
15 August 2026 Saturday Assumption of Mary
20 September 2026 Sunday World Children’s Day
3 October 2026 Saturday German Unity Day Standard holiday
31 October 2026 Saturday Reformation Day
1 November 2026 Sunday All Saints’ Day
18 November 2026 Wednesday Repentance and Prayer Day
25 December 2026 Friday Christmas Day Standard holiday
26 December 2026 Saturday Second Day of Christmas Standard holiday

Sick Days

Eligible employees (those who have been employed for four weeks before starting sick leave) are entitled to sick pay of 100% of the regular income for up to 6 weeks (Entgeltfortzahlung bei Krankheit oder Kur). After six weeks, the health insurance fund (Krankengeld) pays between 70% and 90% of the regular salary, based on the insured employee’s fund level, for up to 78 weeks in three years for incapacity caused by the same illness, calculated from the first day of sickness.

The employee must inform the employer of their incapacity for work and the anticipated duration of the incapacity as soon as possible. If an illness lasts longer than three days, an employee must submit a doctor’s certificate no later than the following working day. Working incapacity certificates are digital and transmitted electronically by the doctor.

Maternity Leave

A pregnant employee is entitled to 14 weeks of paid maternity leave (Mutterschutzgesetz – MuSchG), which can increase to 18 weeks with complicated/multiple births.

Maternity leave consists of two periods: Prenatal leave, which requires the employee to take a minimum of 6 weeks before the expected due date, and Postnatal leave, which requires an employee to take the remaining eight weeks of leave starting from the date of the birth of the child.

The public health insurance fund pays the maternity payment. The payment is equivalent to the average sum of the net wages for the three months before the pregnancy paid by the employee’s public health insurance (or the state in the case of private health insured employees, maximum 210 EUR) and the employer.  The public health insurance pays the maternity benefit (Mutterschaftsgeld) only up to a maximum of 13 EUR a day. If the daily net wage of the last three months is higher, the employer must pay a grant (Zuschuss Zum Mutterschaftsgeld) for the difference.

Paternity Leave

Paternity leave falls under the parental leave.

Parental Leave

New parents are legally entitled to unpaid parental leave (Elternzeit) and must request the leave in writing at least seven weeks before the start date.

Parental leave is 36 months (including the eight weeks of postnatal leave) and can be shared between the parents. However, the parents must take at least 12 months of parental leave within the first three years; the remainder, with permission from the employer, can be used at any point between the child’s second and seventh birthday. Parents can also choose to work part-time up to 30 hours per week with prior permission from the employer during parental leave.

Other Leave

  • Child Sick Leave Day – parents are eligible for up to 15 fully paid sick days per child to care for a sick child. This benefit is available to both parents, with single parents receiving 30 days per child.
  • Family Care Time (Pflegezeitgesetz) – this leave entitles employees to up to 10 days unpaid leave to assist a seriously ill family member or family emergency.

Where a Collective Agreement is in place, employees might be entitled to additional leave types.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to the employment agreement and collective agreement, and is based on the type of contract and reason for termination. After the first six months of employment, employees are protected by the German Termination Protection Act.

Mutual agreements are very common in Germany for terminating employment.

Salary payment interval / date Final payment on termination Bank account payment requirement
The contract must state the pay period. Wages must be paid in legal tender and “on time, as agreed in the contract.” Upon termination, the employer must pay all earned remuneration and deferred pay; if no notice is required, payment must be made by the next working day after termination. Wages are required to be paid in legal tender at the workplace or agreed place.

Notice Period

In general, notice periods in Germany are four weeks but are stipulated within the employment contract/collective agreement and are linked to the employee’s length of service as below:

Up to 2 years 4 weeks (per the 15th or last day of the month)
2 to 4 years 1 month
5 to 7 years 2 months
8 to 9 years 3 months
10 to 11 years 4 months
12 to 14 years 5 months
15 to 19 years 6 months
20 years + 7 months

Severance Pay

There is no general statutory right to severance pay in Germany. Severance is usually based on:
– collective agreements or social plans in larger redundancies, or
– individual agreements (e.g., mutual termination, court settlements under the Termination Protection Act).

A common rule-of-thumb in practice is:

Severance ≈ 0.5 × monthly gross salary × years of service

but the final amount is always subject to negotiation and case-by-case assessment.

Probation Period

Probation or trial periods are generally set within the collective agreements. The common practice in Germany is up to 6 months.

Minimal Statutory Termination Costs

Notice Period during Probation of 6 months or less: 2 weeks

Notice Period:
6 months to 1 year: 4 weeks
2 years to 4 years 1 month
5 years to 7 years: 2 months
8 years: 3 months

Employee resignation: 4 weeks

Severance: Minimum severance is 0.5 monthly salaries per started employment year must be offered if you want worker to sign MTA

Setting Up a Business

Setting up a legal entity

1. Register with the Trade Office in the municipality in which the business is to be established. To this you need:

  • A valid ID document or passport
  • Depending on the activity, a permit or approval
  • A crafts card if you are planning to set up a business in the skilled crafts sector
  • A trade card for activities similar to those in the skilled crafts sector
  • A residence permit that also allows you to pursue a self-employed commercial activity
  • Between ten and forty euros for the registration fee
  • A police clearance certificate or information from the Central Commercial Register may be required.

Describe the activity in as much detail as possible. This will usually take a few days to be processed.

Except for liberal professions, skilled crafts and agriculture, businesses will automatically become a member of the Chamber of Industry and Commerce. This is a legal requirement, and the founder will receive a letter from their local Chamber of Industry and Commerce with all the necessary information.

Before going to the Trade Office, you must know:

  • The type of business
  • Whether a permit is required
  • Where the business will be set up
  • The legal structure of the business

2. Apply for a tax number:

After registering, you will automatically receive the “Questionnaire for tax registration” from your Tax Office (Finanzamt).

Businesses must be registered in the electronic Commercial Register. This is normally carried out by a notary.

Registration as an Employer

Apply for a company number (Betriebsnummer)

As an employer, you submit social security reports for your employees who are subject to social security contributions. In order to be able to take part in this notification procedure, you need a company number for each of your employment companies. In this way, you as an employer are clearly identifiable to the social security agencies. This is important, for example, so that your contribution payments can be assigned to your account.

The company number is assigned by the company number service according to certain principles. A decision scheme shows you when a company number is required.
The company number is standardized in paragraphs 18i to 18n, Book Four of the Social Security Code (SGB IV).
The company number service of the Federal Employment Agency assigns company numbers and records the necessary company data. You are legally obliged to apply for the company number electronically.

New Employee Registration

By law, German employees must have a written employment contract that reflects the key aspects of the employment relationship (parties bound by the contract, work to be performed by the employee, gross salary and benefits, annual leave entitlement, start date of employment, working location and notice periods). There will also be detailed terms and conditions found in Collective Bargaining Agreements.

It is the employer’s responsibility to register all new employees for social insurance. The registration of the new employee with a health insurance company must be done within 6 weeks of hiring the new employee.

If the new employee has private health insurance, he/she must provide copies of their membership documentation from the private health insurer, confirming his/her monthly private health and nursing care insurance contribution amounts for the current calendar year. The documents which the employee must provide are:

‘Bescheinigung für Vorsorgeaufwendung’
‘Bescheinigung zur Erlangung des Arbeitgeberzuschusses für die private Krankenversicherung nach § 257 Abs. 2s Satz 1 SGB V’‘Bescheinigung zur Erlangung des Arbeitgeberzuschusses für die private Pflegeversicherung nach § 61 SGB XI’
Employers are responsible for collecting a capital bond or ‘capital formation savings payment’ (Vermögenswirksame Leistungen) on behalf of the employee, via the payroll. This is referred to as ‘VWL’. Employees can set these up with an insurer of their choice. Some employers offer a monthly contribution to such saving schemes and others do not. Nevertheless, the employer is obliged to deduct the employee’s monthly saving amount from his/her salary and submit the contributions to the insurer on behalf of the employee. A copy of the employee’s VWL contract must be provided when the employee joins the organisation.

New employees must be registered with ELStAM (Electronic Payroll Tax Deduction Characteristics) data prior to the employee’s first live pay run. Employees must provide their personal tax identification number and date of birth as these items of data are required for the reporting of employee tax to the tax office as per the ELStAM process.

International assignees posted to Germany should also ensure they have the appropriate right to work visa/permit as well as a certificate of coverage for Social Security purposes.

Common Benefits

  • Transportation/commuter allowance
  • Wellness allowance
  • Phone and internet allowance
  • Vacation and Christmas bonus, performance bonuses
  • Car allowance
  • Travel insurance
  • Edenred Card: a tax-free benefits card that employees can use at shops, supermarkets, and gas stations
  • House cleaning allowance

Immigration

A long-term (national) German visa type D is required to work in Germany as it allows a foreigner to stay in the country for more than three months. In 2020 the German legislation changed in terms of the required minimum level of skills of the applicant; this is now diploma level, together with being competent in the use of the German language.

The different types of Visas are as follows:

  • The EU Blue Card allows highly qualified employees to work in Germany (and under conditions in other EU countries). To qualify, the applicant generally needs a university degree, an employment contract, and a minimum annual gross salary.

    From 2024, indicative thresholds are roughly:
    – around €43,800 for shortage occupations (e.g. IT, maths, engineering), and
    – around €48,300 for other professions,

    with exact amounts updated annually by the authorities.

  • Permanent residence for valuable personnel. This condition applies to scientists known for their work, researchers, and professors.
  • Permission for highly qualified specialists. Obtaining a work visa to Germany is possible if you have the appropriate skills and a salary of 86,400 EUR annually.
  • General employment. This is the most demanded type of German work permit. There are no strict requirements for education and specialty. Also, the profession must be in demand at the time of the request. To apply for a visa, you must confirm your qualifications and have an employment contract on hand.
  • For job search. This is for the option of obtaining a work visa to Germany for future employment. If approved, a person can stay in the country for six months, after which it is necessary to re-register or obtain a residence permit.

VAT

General

The standard VAT rate in Germany is 19.00%.

Stay up to date on payroll & employment law changes

Version History

February 1, 2024
There are changes in payroll contributions effective in 2024
June 1, 2023
Social Security cost of Long-Term Care Insurance contributions will change for the Employer and the Worker.
February 28, 2022
The national minimum wage increased to 9.82 EUR on 1 Jan. 2022 and will increase to 10.45 EUR on 1 July 2022.
Payroll contributions and personal income tax rates have been updated.
December 29, 2021
Minimum wage rises to €9.82
July 1, 2021
Minimum wage increases to 9.60 EUR per hour
January 1, 2021
Additional statutory health insurance increases to 1.3%.
More

Questions & Answers

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Robyn W.
Robyn W.
5 years ago

Is it mandatory to provide employees with private health insurance?

Erez Greenberg
Erez Greenberg
5 years ago
Reply to  Robyn W.

Health insurance coverage is mandatory but it can be either public or private insurance
and typically depends on the salary and personal preference of the employee.

Klaus Lutz
Klaus Lutz
5 years ago

What are the rules on vacation carry over? 

Emily Kuhnert
Emily Kuhnert
5 years ago
Reply to  Klaus Lutz

Leave in Germany is supposed to be continuous unless the leave would interfere with the employer’s urgent operations.
In this case, leave can be split up, with one vacation being at least 12 consecutive days. In general, leave must be taken within the same calendar year that it is accrued, however, if operations of the company or personal reasons of the employee prevent the leave being taken, leave can be carried over to the next year but must be used within the first 3 months.

Leon
Leon
4 years ago

If my employee and I agree to terminate an employment contract early, it is necessary to put the termination date in writing?

Alex Margolin
Alex Margolin
4 years ago
Reply to  Leon

A contract can be ended early if both parties agree. However, it is highly recommended that you draw up a new contract with the agreed terms signed by both parties so that there are no grounds for legal action later in case the employee misunderstood the full ramifications.

Valentin Guadarrama
Valentin Guadarrama
4 years ago

What is the so called “Direct insurance” in Germany?

Erez Greenberg
Erez Greenberg
4 years ago

Hi, “Direct Insurance” is a supplementary occupational pension scheme that allows for the employer to be the direct policyholder who transfers the contributions directly to the insurance company. Direct insurance can be both employer-financed, employee-financed, or mixed. This scheme is intended to provide a wide range of benefits towards pension.

Melisa
Melisa
4 years ago
Reply to  Erez Greenberg

Does an employer need to have a legal entity in order to take over an employee’s insurance
scheme?

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  Melisa

Hi, What kind of insurance scheme are you referring to? The rules might differ depending on if it is mandatory or optional. Typically, when it comes to an employer insurance e.g. accident coverage, an entity is required.

Melisa
Melisa
4 years ago
Reply to  Erez Greenberg

Hi Erez – A private health insurance and private pension scheme. I would assume yes an entity needs to be established but couldn’t find anything online to confirm that.

Hernan Chiosso
Hernan Chiosso
4 years ago

Are there any restrictions regarding the duration of third party employment through a PEO? I heard somewhere that one could only use a PEO for a maximum of 18 months

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  Hernan Chiosso

Hi Hernan, That is correct, the maximum limit a company can hire through a PEO is 18 months.

Hernan Chiosso
Hernan Chiosso
4 years ago
Reply to  Erez Greenberg

Thanks, and what happens if you change the PEO after 18 months? Is that a possibility? Or would the company need to establish business in Germany?

Alja Cokan
Alja Cokan
4 years ago
Reply to  Erez Greenberg

Which other countries have the (18-month) duration limit for the PEO?

Emily Kuhnert
Emily Kuhnert
4 years ago
Reply to  Alja Cokan

Hi Alja, thank you for your question. Croatia has a 3-year limit, however, the contract may be renewed for an additional 3 years so long as the worker’s job title and scope of work is significantly different.

Daniela Mercado
Daniela Mercado
4 years ago

Hi– is there a cap on the employer contributions when an employee reaches a certain income?

Erez Greenberg
Erez Greenberg
4 years ago

Hi Daniela, The two different caps for the social contributions are as follow:

The cap of 58,200 Euro for these elements:
Pension insurance
Unemployment Insurance
Accident insurance
Insolvency Contribution

The cap of 58,050 Euro for these elements:
Health Insurance
Long-term care insurance

Please note these caps are for 2021, we are still pending if there will be a change in 2022.

Abigail Aldouri
Abigail Aldouri
4 years ago

Hi how is part time holiday allowance managed? If someone is working 32 hours per week across 5 days. Would the allowance be the same as a full time worker (31 days) as they will be working 5 days, or does it need to be pro-rated on an hourly rate? Also do we need to pro-rata the bank holidays also?

Erez Greenberg
Erez Greenberg
4 years ago

This kind of benefit is usually in place if there is a collective agreement, or if there is a company practice. Usually, a fixed payout month is determined.
Part-time employees are also entitled to receive pro-rated holiday pay.

Aarav Singh
Aarav Singh
4 years ago

Is there a limit how long a employee in Germany can be hire for

Erez Greenberg
Erez Greenberg
4 years ago
Reply to  Aarav Singh

Hi, I would require more information in order to assist you with this question.

Tessa J.
Tessa J.
3 years ago

What are Germany’s final pay (voluntary and involuntary) & PILON laws?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Tessa J.

In the event of termination, an employee must receive at least a half month’s salary for each year of service. Normally, Pilon is not allowed in Germany and is only permitted if it has been agreed upon or if there are exceptional circumstances.

Michael
Michael
3 years ago

HI is there any additional payment if an employee works on Holidays / Sundays ?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Michael

The law in Germany requires an employee to work no more than an average of 40 hours within a 6-month timeframe. Work on Sundays and public holidays is generally prohibited. There are exceptions but work on Sundays has to be compensated for by corresponding time off within the next two weeks (or eight weeks in the case of work on public holidays). Also, employers would have to get permission from the local authorities for an employee to work on Sundays with a reason as to why work on Sundays is required.

Nicholas
Nicholas
3 years ago

Are there rules around how prorated monthly salary is calculated, e.g. if an employee has worked only 10 days in a month, is salary = 10/number of days in month, or salary = 10/number of work days in month?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Nicholas

In Germany, the monthly salary is always based on 30 days, even if the month has 31 days. This means that if an employee has worked from November 1st to November 10th, their monthly salary will be divided by 30 and multiplied by 10 (even if the month has 31 days).

Nicholas
Nicholas
3 years ago
Reply to  Erez Greenberg

Hi Erez, my question was about something different. Let’s say you worked 5 days in a month, but there is a weekend in between, you would be paid more prorated than someone who worked Monday to Friday?

Natalie C
Natalie C
3 years ago

if a german national who is working for an Uk employer in england now wants to work remotely from Germany, how does this affect the UK employer liabilites?

Erez Greenberg
Erez Greenberg
3 years ago
Reply to  Natalie C

This is a specific legal issue you should seek guidance for, but in most cases, the worker should be on a contract according to where they are based.

Egor
Egor
3 years ago

Hello! If I am a foreign (non-EU) student at a university in Germany and a company from another country wants to hire me remotely, is it possible to do this with PapayaGlobal?

ryan
ryan
2 years ago
Reply to  Egor

Papaya Global has a minimum requirement for hiring remotely via our EOR solution.

Jip
Jip
2 years ago

Are there also state specific employers taxes? Or is employers tax only on national level?

Enny Shmurin
Enny Shmurin
2 years ago
Reply to  Jip

There are no state specific taxes, just national level.

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Payroll and Benefits Guide
in Germany

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

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Public Holidays Calendar

Germany
Download:
CSV
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Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
6 January 2026 Tuesday Epiphany
8 March 2026 Sunday International Women’s Day
3 April 2026 Friday Good Friday Standard holiday
5 April 2026 Sunday Easter Sunday
6 April 2026 Monday Easter Monday Standard holiday
1 May 2026 Friday Labour Day Standard holiday
14 May 2026 Thursday Ascension Day Standard holiday
24 May 2026 Sunday Whit Sunday
25 May 2026 Monday Whit Monday Standard holiday
4 June 2026 Thursday Corpus Christi
8 August 2026 Saturday Augsburg Peace Festival
15 August 2026 Saturday Assumption of Mary
20 September 2026 Sunday World Children’s Day
3 October 2026 Saturday German Unity Day Standard holiday
31 October 2026 Saturday Reformation Day
1 November 2026 Sunday All Saints’ Day
18 November 2026 Wednesday Repentance and Prayer Day
25 December 2026 Friday Christmas Day Standard holiday
26 December 2026 Saturday Second Day of Christmas Standard holiday