Germany

Last Update by Katie, 28 May 2024

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Exchange Rate

13 Jun 2024

 

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 10
Monthly Train and Bus Tickets 50
3 Bedrooms Rental (City Center) 2,430
3 Bedrooms Rental (Outskirt) 1,730

Current Inflation Rate

3.7%

Wage

Minimum Wages

  • 12.41 EUR per hour
  • Apprentices in the first year of apprenticeship: minimum 585 EUR per month

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

Country Level

Type Employer Rates Employee Rates Notes
Pension Insurance 9.3% 9.3% Max. contribution base - 7,550 EUR
Unemployment Insurance 1.3% 1.3% Max. contribution base
West - 7,550 EUR
East - 7,450 EUR
Health Insurance 7.3% 7.3% The health insurance company may impose an additional commission, usually from 0.39% to 1.7%.
Max. contribution base - 5,175 EUR
Care Insurance 1.7% 1.7% The amount of Care Insurance will be reduced for staff with children
U1 - salary continuation insurance 1%-4% - All businesses with fewer than 30 regular staff must participate
U2 - Maternity fee 0,15% - 0,99% - All staff with 4 weeks continuous service
U3 - Bankruptcy fee 0,06% - All employers are liable

Other Benefit

Other common employment benefits in Germany include:

  • Inflation relief bonus: up to EUR 3,000
  • Food voucher: Around 7,23 EUR / day (taxable if the amount is higher)
  • Co-financing for sports activities: Around EUR 50
  • Private Health Insurance : 8.15% gross monthly salary capped at 422 EUR

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
< 11,604 0%
11,604 - 17,005 (income-11,604)/10,000
17,006 - 66,760 (income - 17,005)/10,000
63,515 - 277,825 42%
> 277,826 45%

Non-residents

  • Depends on the double taxation agreement between countries. Typically, only income originating in German is taxed.

Working Hours

Statutory

40 hours
8 hours a day, 5 days a week

Typical practice

40 hours
Monday-Saturday

Overtime

The number of working hours cannot exceed 48 hours per week

  • Remuneration for overtime work is included in the employment contract or collective agreement.

Employment Contract

Permanent

Probation

Up to 6 months

Termination

  • Notice period:
    Up to 2 years - 4 weeks, to the fifteenth or to 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: Termination by the employer
    Half a months' salary for year year of service.

Public Holiday

9 days + public holidays for a specific region

Country Level

Date Name
01 Jan New Year's Day
06 Jan Epiphany
08 Mar Wome's day
29 Mar Good Friday
31 Mar Easter Sunday
01 Apr Easter Monday
01 May Labor Day
09 May Feast of the Ascension of Jesus Christ
19 May Whit Sunday
20 May Pentecost Monday
30 May Corpus Christi
08 Aug Peace holiday
15 Aug Assumption of Mary
20 Sep Children's Day
03 Oct Germany Unity Day
31 Oct Church reformation day
01 Nov All the saints
20 Nov Day of repentance
25 Dec - 26 Dec Christmas Day

Leave

Leave Type Entitlement Notes
Annual Leave 20 / 24 working days Staff with 6 months continuous service
1/12 holiday leave for each month of work
Sick Leave Up to 6 weeks All staff
First 6 weeks paid 100% of salary by employer
After 6 weeks paid by health insurance
Maternity Leave 14 weeks
6 weeks before childbirth, 8 weeks after childbirth
Expectant mothers
Paid by health insurance fund
Parental leave Up to 3 years Expectant fathers
Paid by parental benefit

Reference

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