Interfisc UK | What you need to know about employment in Germany | Interfisc
10654
page-template-default,page,page-id-10654,ajax_updown_fade,page_not_loaded,boxed,wpb-js-composer js-comp-ver-6.2.0,vc_responsive

Practical information Germany

 

Foreign workers:

What you need to know about employment in Germany

Legal minimum wage

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 Germany and the associated costs, calculated on an annual basis.

The cost overview gives 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 will be happy to help you make a suitable offer for your employee, so you will be well prepared for negotiating with your employee.

Additional employer obligations in Germany

In view of the complexity and, possibly, inadequate internal knowledge of German legislation in your organisation, we recommend that you do not limit yourself to reviewing the financial side! Our fact sheets provide a detailed explanation of the sections that make up the cost overview. We also give an overall picture of the German rules concerning:

  • Employment law
  • Social security
  • Taxes
  • Employee benefits
  • Health & well-being
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 FIGURES IN GERMANY

For the exact information regarding German inflation please refer to the official site of the German government Statistisches Bundesamt, click here

MAXIMUM SOCIAL SECURITY CONTRIBUTIONS IN GERMANY

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 for year 2021

Do you want to know more about social security and employer’s costs in Germany? Then download our factsheets below!

NATIONAL HOLIDAYS IN GERMANY

2021 2022
New Year’s Day 1.1.2021 (Friday) 1.1.2022 (Saturday)
Epiphany (1) 6.1.2021 (Wednesday) 6.1.2022 (Thursday)
International Women’s Day (2) 8.3.2021 (Monday) 8.3.2022 (Tuesday)
Good Friday 2.4.2021 (Friday) 15.4.2022 (Friday)
Easter Day 4.4.2021 (Sunday) 17.4.2022 (Sunday)
Easter Monday 5.4.2021 (Monday) 18.4.2022 (Monday)
Labour Day 1.5.2021 (Saturday) 1.5.2022 (Sunday)
Ascension Day 13.5.2021 (Thursday) 26.5.2022 (Thursday)
Whitsunday 23.5.2021 (Sunday) 5.6.2022 (Sunday)
2nd Whitsunday 24.5.2021 (Monday) 6.6.2022 (Monday)
Corpus Christi (3) 3.6.2021 (Thursday) 16.6.2022 (Thursday)
Maria Ascension Day (1) 15.8.2021 (Sunday) 15.8.2022 (Monday)
Day of German Unity 3.10.2021 (Sunday) 3.10.2022 (Monday)
Reformation Day (4) 31.10.2021 (Sunday) 31.10.2022 (Monday)
All Saints (5) 1.11.2021 (Monday) 1.11.2022 (Tuesday)
Christmas 25.12.2021 (Saturday) 25.12.2022 (Sunday)
Boxing Day 26.12.2021 (Sunday) 26.12.2022 (Montag)

If an official holiday falls during the weekend, no substitute day off is given in Germany.

(1) only in Baden-Württemberg, Beieren and Sachsen-Anhalt
(2) only in Berlin
(3) only in Baden-Württemberg, Bayern, Hessen, Nordrhein-Westfalen, Rheinland-Pfalz, Saarland and in certain
municipalities of Sachsen and Thüringen
(4) only in Brandenburg, Mecklenburg-Vorpommern, Sachsen, Sachsen-Anhalt and Thüringen
(5) only in Baden-Württemberg, Bayern, Nordrhein-Westfalen, Rheinland-Pfalz and Saarland

SCHOOL HOLIDAYS IN GERMANY

2020 Christmas Winter Spring Ascension /
Pentecost
Summer Autumn
Baden-Württemberg 23.12 – 09.01.21 06.04 – 18.04 02.06 – 13.06 30.07 – 12.09 26.10 – 30.10
Bayern 23.12 – 09.01.21 24.02 – 28.02 06.04 – 18.04 02.06 – 13.06 27.07 – 07.09 31.10 – 06.11
Berlin 21.12 – 02.01.21 03.02 – 08.02 06.04 – 17.04 21.05 – 22.05 25.06 – 07.08 12.10 – 24.10
Brandenburg 21.12 – 02.01.21 03.02 – 08.02 06.04 – 17.04 25.06 – 08.08 12.10 – 24.10
Bremen 23.12 – 08.01.21 03.02 – 04.02 28.03 – 14.04 21.05 – 22.05 16.07 – 26.08 12.10 – 24.10
Hamburg 21.12 – 04.01.21 31-01 02.03 – 13.03 18.05 – 22.05 25.06 – 05.08 05.10 – 16.10
Hessen 21.12 – 09.01.21 06.04 – 18.04 06.07 – 14.08 05.10 – 17.10
Meckl.-Vorpommern 21.12 – 02.01.21 10.02 – 21.02 06.04 – 15.04 21.05 – 29.05 22.06 – 01.08 05.10 – 10.10
Niedersachsen ** 23.12 – 08.01.21 03.02 – 04.02 03.02 – 04.02 21.05 – 22.05 16.07 – 26.08 12.10 – 23.10
Nordrhein-Westfalen 23.12 – 06.01.21 06.04 – 18.04 02.06 29.06 – 11.08 12.10 – 24.10
Rheinland-Pfalz 21.12 – 31.12.21 17.02 – 21.02 09.04 – 17.04 06.07 – 14.08 12.10 – 23.10
Saarland 21.12 – 31.12.21 17.02 – 25.02 14.04 – 24.04 06.07 – 14.08 12.10 – 23.10
Sachsen 23.12 – 02.01.21 10.02 – 22.02 10.04 – 18.04 21.05 – 22.05 20.07 – 28.08 19.10 – 31.10
Sachsen-Anhalt 21.12 – 05.01.21 10.02 – 14.02 06.04 – 11.04 18.05 – 30.05 16.07 – 26.08 19.10 – 24.10
Schleswig-Holstein * 21.12 – 06.01.21 30.03 – 17.04 21.05 – 22.05 29.06 – 08.08 05.10 – 17.10
Thüringen 21.12 – 06.01.21 10.02 – 14.02 06-04 – 18.04 21.05 – 22.05 20.07 – 29.08 17.10 – 30.10

1) Indicated is respectively the first and last vacationday: additional changes, for some countries, are reserved.

* On the islands of Sylt, Föhr, Amrum and Helgoland as well as Haligen special arrangements apply for the summer and autumn holiday.

** On the Lower Saxony North Sea Islands special arrangements apply.