Practical information Germany
Remote employees: What you need to know about employment in Germany
What legislation?
Employers are expected to be fully aware of and apply human resources legislation and regulations. This is not always possible, especially when employees are stationed abroad. In that case, you must be able to count on a solid partner who has all the knowledge in-house. At Interfisc, we take care of your employees across the border, allowing you to fully focus on your core business.
Local employees in Germany, with or without a registered place of business
In several countries, it is possible to offer your products or services through a local employee without the need to have your own registered office there for this purpose. This can, however, often be subject to certain restrictions as to the nature of your activities as a foreign company without a registered office in the country in question.
Please also note that, in principle, German social security will apply to your employees residing in Germany, whether they work exclusively or partially in that country. In addition, German tax regulations will apply to the income they earn in Germany and you will be obliged to observe German employment law.
Payroll costs in Germany
One of the first questions you could be confronted with before taking on an employee in Germany, is the high level of payroll costs in the country.
In our factsheet Personnel in Germany, available for downloading below, please find an overview of the employee benefits package that is customary in Germnay and the associated costs, calculated on an annual basis.
The overview of the costs gives you an insight into the terms and conditions of employment that are customary in Germany, based on which you can decide whether it is worth having an employee in Germany. As soon as you make this decision, we are happy to help you make a suitable offer to your employee. This means that you will be well-prepared for negotiating with your employee.
Additional employer obligations in Germany
In view of the complexity of and, possibly, inadequate internal knowledge of German legislation in your organisation, we recommend that you do not limit yourself to the financial aspects only. Our factsheets provide you a detailed explanation of everything involved.
We provide you with an overall picture of these German rules:
- Employment law in Germany
- Social security in Germany
- Taxes in Germany
- Employee benefits in Germany
- Health & well-being in Germany
Download our factsheet ‘Personnel in Germany’, with information on regulations, payroll costs, employer insurance and payroll accounting in Germany!
Official bodies in Germany
Official bodies: | Information about: |
---|---|
Deutscher Industrie- und Handelskammertag e.V. | Industry & Trade |
Euregio Rhein-Waal | The Netherlands - Germany |
GTAI Trade & Invest | Foreign investments |
Inflation in Germany
For the exact information regarding German inflation please refer to the official site of the German government Statistisches Bundesamt.
Click here > https://www.destatis.de/DE/Startseite.html
Just like in the Netherlands, social security contributions in Germany have a maximum premium ceiling.
Concerning German pensions and unemployment, there is a difference in the premium ceiling between the old federal states (Berlin-West, Hamburg, Schleswig-Holstein, Niedersachsen, Nordrhein-Westfalen, Rheinland-Pfalz, Saarland, Hessen, Baden-Württemberg, Bayern) and the new federal states (Brandenburg, Mecklenburg-Western Pomerania, Saxony-Anhalt, Saxony, Thuringia).
Click here for an overview > https://www.lohn-info.de/sozialversicherungsbeitraege2025.html#google_vignette
Minimum wage in Germany
Germany, like the Netherlands, also has a statutory minimum hourly wage. This legal minimum wage was introduced in Germany in 2015 with an hourly wage of € 8,50 and is €12.82 gross since January 2025.
Note: As in most neighbouring countries, a collective agreement or Tarifvertrag may also apply in Germany, with its own salary agreements. Incidentally, as a derivative of the minimum wage, Germany also has an income limit for a so-called ‘Minijob’. This is a side job where an employee is allowed to earn a maximum amount per month without owing taxes and/or contributions on it. This income limit is € 556,- per month as of 1 January 2025.
For the exact information regarding German minimum wage please refer to the official site of the German Government .
Click here > https://www.bmas.de/DE/Arbeit/Arbeitsrecht/Mindestlohn/mindestlohn.html
National holidays in Germany
For the exact information regarding German national holidays please refer to the following website(s) :
– www.schulferien.org/deutschland/feiertage/
– www.feiertage-deutschland.de/2025/
School holidays in Germany
For the exact information regarding German school holidays please refer to the following website:
– www.schulferien.org/deutschland/ferien/2025/
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Together, solution-oriented and caring
Since 1972, Interfisc has offered international HR & Payroll solutions in the Netherlands, Belgium, Germany, France, the United Kingdom, and Italy. We do this from our offices in the Netherlands and Belgium, and with an international team of around 45 committed and caring employees.
- Thorough knowledge of local rules on employment law, social security, taxes, employee benefits and health & safety
- We keep you informed of changes in local legislation, supplemented with practical solutions
- One point of contact for all your questions
- Expert in cross border payroll solutions since 1972
- We speak your language!
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Maximum social security contribution in Germany