- Country Guide
- Germany
Germany
Last Update by Federico, 29 Apr 2025
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Exchange Rate
05 Oct 2025
Cost of Living
Indicative value for a working adult in a city: Berlin
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (EUR) |
|---|---|
| McDonalds Set Meal | 11 |
| Monthly Train and Bus Tickets | 58 |
| 3 Bedrooms Rental (City Center) | 2,275 |
| 3 Bedrooms Rental (Outskirt) | 1,690 |
Current Inflation Rate
2.6%
Wage
Minimum Wages
- 12.82 EUR per hour
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (EUR) |
|---|---|
|
Entry-Level
Fresh Graduate
|
3,000 |
|
Mid-Level
5 Years
|
5,000 |
|
Experienced & Managerial Level
10 Years
|
>7,500 |
|
Specialized & Senior-Level
15 Years
|
>8,200 |
Annual Salary Growth
2.6%
Statutory Contribution
Both the employer’s contribution and the employee’s contribution must be transferred to the health insurance provider no later than 3 working days before end of the month
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Pension Insurance | 9.3% | 9.3% | Max. contribution base -8,050 EUR |
| Unemployment Insurance | 1.3% | 1.3% |
Max. contribution base - 8,050 EUR |
| Health Insurance | 7.3% | 7.3% |
The health insurance company may impose an additional commission, usually from 1.4% to 4.4%. Max. contribution base - 5,512.50 EUR |
| Care Insurance | 1.8% |
0.8%-2.4% (depends on the number of children) |
Max. contribution base - 5,512.50 EUR |
| U1 - Salary continuation insurance | 1%-4% | - | All businesses with fewer than 30 regular staff must participate |
| U2 - Maternity fee | 0.15% to 0.99% | - | All staff with 4 weeks continuous service |
| U3 - Bankruptcy fee | 0.09% | - | All employers are liable |
Other Benefit
Other common employment benefits in Germany include:
- Food voucher: Around 7,23 EUR / day (taxable if the amount is higher)
- Co-financing for sports activities: Around EUR 50
- Private health insurance: employer contributes 8.15% of staff gross monthly salary
For employees who exceed the annual limit
Capped at EUR 422 - Additional days off:
It is typical practice to provide employees with additional days of paid leave
Usually around 5-15 additional days
Income Tax
Residents
-
Tax Year: 1st Jan to 31st Dec
Tax filing period: 31st Jul (following year) - 28th Feb (second year of the following year)
Country Level
| Taxable Income | Rate |
|---|---|
| < 12,096 | 0% |
| 12,096 - 68,429 |
14% - 42% Geometrically progressive rates |
| 68,430 - 277,825 | 42% |
| > 277,826 | 45% |
Non-residents
- Depends on the double taxation agreement between countries. Typically, only income originating in German is taxed.
-
A tax resident is an individual who meets one of following criteria:
- Residence in Germany for at least 183 days in a calendar year
- Have their centre of life interests in Germany
Working Hours
Statutory
40 hours
8 hours a day, 5 days a week
Typical practice
40 hours
Some collective agreements will provide for shorter weekly working hours of 35-38 hours
Monday-Friday
Overtime
The number of working hours cannot exceed 48 hours per week. Both full time and part time employee should be entitled with overtime payment.
- Remuneration for overtime work is included in the employment contract or collective agreement.
Minimum: 100% of basic salary
Employment Contract
Permanent
Contract Format
In writing in German or in another language understandable to both parties.
It is possible to use a qualified electronic signature
Payroll Currency
EUR
Probation
Up to 6 months
Termination
The contract may be terminated by the employer, the employee or by mutual agreement
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
- 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
- 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
| Notice Period - Regular | - In writing rounded up to 15th or the end of a calendar month - 4 weeks minimum notice required |
- Up to 2 years - 4 weeks, rounded up to 15th or the end of a calendar month - 2-4 years - 1 month to the end of a calendar month - 5-7 years - 2 months to the end of a calendar month - 8-9 years - 3 months to the end of a calendar month - 10-11 years - 4 months to the end of a calendar month - 12- 14 years - 5 months to the end of a calendar month - 15-19 years - 6 months to the end of a calendar month - 20 years or longer -7 months to the end of a calendar month |
- Up to 2 years - 4 weeks, rounded up to 15th or the end of a calendar month - 2-4 years - 1 month to the end of a calendar month - 5-7 years - 2 months to the end of a calendar month - 8-9 years - 3 months to the end of a calendar month - 10-11 years - 4 months to the end of a calendar month - 12- 14 years - 5 months to the end of a calendar month - 15-19 years - 6 months to the end of a calendar month - 20 years or longer -7 months to the end of a calendar month |
| Severance Pay | - | - Common practice no statutory requirements - Half a months' salary for each year of service |
- Common practice no statutory requirements - Half a months' salary for each year of service |
Public Holiday
9 days + public holidays for a specific region
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 18 Apr | Good Friday |
| 21 Apr | Easter Monday |
| 01 May | Labour Day |
| 29 May | Ascension Day |
| 09 Jun | Whit Monday |
| 03 Oct | Day of German Unity |
| 25 Dec - 26 Dec | Christmas Day |
State/Province Level
Sachsen-Anhalt
| Date | Name |
|---|---|
| 06 Jan | Epiphany |
| 31 Oct | Reformation Day |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
20 days - employees working 5-day week 24 days - employees working 6-day week |
Staff with 6 months continuous service 1/12 holiday leave for each month of work |
| Sick Leave | Up to 6 weeks |
All staff Paid by employer - 100% salary After 6 weeks paid by government - 70% salary |
| Maternity Leave |
14 weeks 6 weeks before childbirth, 8 weeks after childbirth 18 weeks (preterm birth, multiple births or child disability) |
All expectant mothers Paid by government - Max. 13 EUR/day The remaining amount up to 100% of the salary is covered by the employer. |
| Parental Leave | Up to 3 years |
The leave can be divided between both parents. If the 36 months are not used by the child's 3rd birthday, a maximum of 24 months can be used between the child's 3rd and 8th birthday "Elterngeld" paid by government |
| Occasional Leave | Up to 4 days | Al staff for passing for a family member, relocation and mandatory medical treatment |
| Short-term care leave | 10 working days |
Care for a close relative in case of emergency Unpaid |
| Long-term care leave | 6 months |
Care for a close relative 10 business days' written notice to the employer |
Reference
- https://www.numbeo.com/cost-of-living/in/Berlin
- Gesetzliche Kündigungsfrist - Handelskammer Hamburg (ihk.de)
- https://www.gesetze-im-internet.de/burlg/BJNR000020963.html
- https://www.arbeitsrechte.de/urlaubsanspruch/
- https://www.bundesregierung.de/breg-de/themen/arbeit-und-soziales/beitragsbemessungsgrenzen-2024-2229320
- Beitragsberechnung Grundlagen | AOK-Arbeitgeberservice
- https://www.gesetze-im-internet.de/sgb_5/__257.html
- https://www.bmfsfj.de/bmfsfj/meta/en/publications-en/parental-allowance-and-parental-leave-the-federal-parental-allowance-and-parental-leave-act-139912
- https://interlinks.euro.centre.org/model/example/CareLeaveAct
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Contact UsCountry Guide - Germany
Last updated: 29 Apr 2025
Exchange Rate
Currency (EUR)
- 1 CNY = 0.185 EUR
- 1 USD = 1.32 EUR
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Berlin
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (EUR) |
|---|---|
| McDonalds Set Meal | 11 |
| Monthly Train and Bus Tickets | 58 |
| 3 Bedrooms Rental (City Center) | 2,275 |
| 3 Bedrooms Rental (Outskirt) | 1,690 |
Current Inflation Rate
2.6%
Wage
Minimum Wages
- 12.82 EUR per hour
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (EUR) |
|---|---|
|
Entry-Level
Fresh Graduate
|
3,000 |
|
Mid-Level
5 Years
|
5,000 |
|
Experienced & Managerial Level
10 Years
|
>7,500 |
|
Specialized & Senior-Level
15 Years
|
>8,200 |
Annual Salary Growth
2.6%
Statutory Contribution
Both the employer’s contribution and the employee’s contribution must be transferred to the health insurance provider no later than 3 working days before end of the month
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Pension Insurance | 9.3% | 9.3% | Max. contribution base -8,050 EUR |
| Unemployment Insurance | 1.3% | 1.3% |
Max. contribution base - 8,050 EUR |
| Health Insurance | 7.3% | 7.3% |
The health insurance company may impose an additional commission, usually from 1.4% to 4.4%. Max. contribution base - 5,512.50 EUR |
| Care Insurance | 1.8% |
0.8%-2.4% (depends on the number of children) |
Max. contribution base - 5,512.50 EUR |
| U1 - Salary continuation insurance | 1%-4% | - | All businesses with fewer than 30 regular staff must participate |
| U2 - Maternity fee | 0.15% to 0.99% | - | All staff with 4 weeks continuous service |
| U3 - Bankruptcy fee | 0.09% | - | All employers are liable |
Other Benefit
Other common employment benefits in Germany include:
- Food voucher: Around 7,23 EUR / day (taxable if the amount is higher)
- Co-financing for sports activities: Around EUR 50
- Private health insurance: employer contributes 8.15% of staff gross monthly salary
For employees who exceed the annual limit
Capped at EUR 422 - Additional days off:
It is typical practice to provide employees with additional days of paid leave
Usually around 5-15 additional days
Income Tax
Residents
-
Tax Year: 1st Jan to 31st Dec
Tax filing period: 31st Jul (following year) - 28th Feb (second year of the following year)
Country Level
| Taxable Income | Rate |
|---|---|
| < 12,096 | 0% |
| 12,096 - 68,429 |
14% - 42% Geometrically progressive rates |
| 68,430 - 277,825 | 42% |
| > 277,826 | 45% |
Non-residents
- Depends on the double taxation agreement between countries. Typically, only income originating in German is taxed.
-
A tax resident is an individual who meets one of following criteria:
- Residence in Germany for at least 183 days in a calendar year
- Have their centre of life interests in Germany
Working Hours
Statutory
40 hours
8 hours a day, 5 days a week
Typical practice
40 hours
Some collective agreements will provide for shorter weekly working hours of 35-38 hours
Monday-Friday
Overtime
The number of working hours cannot exceed 48 hours per week. Both full time and part time employee should be entitled with overtime payment.
- Remuneration for overtime work is included in the employment contract or collective agreement.
Minimum: 100% of basic salary
Employment Contract
Fixed-Term
Fixed-Term contracts without an objective reason
Probation
Up to 6 months
Termination
The contract may be terminated by the employer, the employee or by mutual agreement
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
- 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
- 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
| Notice Period - Regular | - Rounded up to 15th or the end of a calendar month - 4 weeks minimum notice required |
- Up to 2 years - 4 weeks, rounded up to 15th or the end of a calendar month - 2-4 years - 1 month to the end of a calendar month - 5-7 years - 2 months to the end of a calendar month - 8-9 years - 3 months to the end of a calendar month - 10-11 years - 4 months to the end of a calendar month - 12- 14 years - 5 months to the end of a calendar month - 15-19 years - 6 months to the end of a calendar month - 20 years or longer -7 months to the end of a calendar month |
- Up to 2 years - 4 weeks, rounded up to 15th or the end of a calendar month - 2-4 years - 1 month to the end of a calendar month - 5-7 years - 2 months to the end of a calendar month - 8-9 years - 3 months to the end of a calendar month - 10-11 years - 4 months to the end of a calendar month - 12- 14 years - 5 months to the end of a calendar month - 15-19 years - 6 months to the end of a calendar month - 20 years or longer -7 months to the end of a calendar month |
| Severance Pay | - | - Common practice no statutory requirements - Half a months' salary for each year of service |
- Common practice no statutory requirements - Half a months' salary for each year of service |
Permanent
Probation
Up to 6 months
Termination
The contract may be terminated by the employer, the employee or by mutual agreement
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
- 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
- 2 weeks - The notice period during the probation period begins on the date the notice of termination is received. |
| Notice Period - Regular | - In writing rounded up to 15th or the end of a calendar month - 4 weeks minimum notice required |
- Up to 2 years - 4 weeks, rounded up to 15th or the end of a calendar month - 2-4 years - 1 month to the end of a calendar month - 5-7 years - 2 months to the end of a calendar month - 8-9 years - 3 months to the end of a calendar month - 10-11 years - 4 months to the end of a calendar month - 12- 14 years - 5 months to the end of a calendar month - 15-19 years - 6 months to the end of a calendar month - 20 years or longer -7 months to the end of a calendar month |
- Up to 2 years - 4 weeks, rounded up to 15th or the end of a calendar month - 2-4 years - 1 month to the end of a calendar month - 5-7 years - 2 months to the end of a calendar month - 8-9 years - 3 months to the end of a calendar month - 10-11 years - 4 months to the end of a calendar month - 12- 14 years - 5 months to the end of a calendar month - 15-19 years - 6 months to the end of a calendar month - 20 years or longer -7 months to the end of a calendar month |
| Severance Pay | - | - Common practice no statutory requirements - Half a months' salary for each year of service |
- Common practice no statutory requirements - Half a months' salary for each year of service |
Public Holiday
9 days + public holidays for a specific region
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
20 days - employees working 5-day week 24 days - employees working 6-day week |
Staff with 6 months continuous service 1/12 holiday leave for each month of work |
| Sick Leave | Up to 6 weeks |
All staff Paid by employer - 100% salary After 6 weeks paid by government - 70% salary |
| Maternity Leave |
14 weeks 6 weeks before childbirth, 8 weeks after childbirth 18 weeks (preterm birth, multiple births or child disability) |
All expectant mothers Paid by government - Max. 13 EUR/day The remaining amount up to 100% of the salary is covered by the employer. |
| Parental Leave | Up to 3 years |
The leave can be divided between both parents. If the 36 months are not used by the child's 3rd birthday, a maximum of 24 months can be used between the child's 3rd and 8th birthday "Elterngeld" paid by government |
| Occasional Leave | Up to 4 days | Al staff for passing for a family member, relocation and mandatory medical treatment |
| Short-term care leave | 10 working days |
Care for a close relative in case of emergency Unpaid |
| Long-term care leave | 6 months |
Care for a close relative 10 business days' written notice to the employer |
Reference
- https://www.numbeo.com/cost-of-living/in/Berlin
- Gesetzliche Kündigungsfrist - Handelskammer Hamburg (ihk.de)
- https://www.gesetze-im-internet.de/burlg/BJNR000020963.html
- https://www.arbeitsrechte.de/urlaubsanspruch/
- https://www.bundesregierung.de/breg-de/themen/arbeit-und-soziales/beitragsbemessungsgrenzen-2024-2229320
- Beitragsberechnung Grundlagen | AOK-Arbeitgeberservice
- https://www.gesetze-im-internet.de/sgb_5/__257.html
- https://www.bmfsfj.de/bmfsfj/meta/en/publications-en/parental-allowance-and-parental-leave-the-federal-parental-allowance-and-parental-leave-act-139912
- https://interlinks.euro.centre.org/model/example/CareLeaveAct
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000