Germany: Payroll & Employment Facts
Verified statutory employment facts for Germany, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Germany employer-of-record guide and the Germany country hub.
What is the minimum wage in Germany?
| National minimum wage |
€13.90 / hour
|
|---|---|
| Next review date |
2027-06-30
|
What employer social contributions apply in Germany?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
20.45%
|
|---|---|
| Pension |
9.30%
|
| Healthcare |
8.15%
|
| Unemployment Insurance (Arbeitslosenversicherung) |
1.30%
|
| Long-term Care Insurance (Pflegeversicherung) |
1.70%
|
| Accident Insurance (Gesetzliche Unfallversicherung) |
1.20%
|
| Maternity Leave Levy (Umlage U2) |
0.49%
|
| Insolvency Levy (Insolvenzgeldumlage) |
0.06%
|
| Annual contribution ceiling |
90,600 EUR
|
| Total employer burden |
22.20%
|
What notice and leave rules apply in Germany?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0 to 6 months | 2 weeks |
| 7 to 23 months | 4 weeks |
| 24 to 59 months | 4 weeks |
| 60 to 95 months | 8 weeks |
| 96 to 119 months | 12 weeks |
| 120 to 143 months | 16 weeks |
| 144 to 179 months | 20 weeks |
| 180 to 239 months | 24 weeks |
| 240+ months | 28 weeks |
| Payment in lieu of notice (PILON) |
Not permitted
|
|---|---|
| Minimum annual leave |
20 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
9 days
|
Is 13th-month pay required in Germany?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
No
|
|---|---|
| Profit sharing required |
No
|
| Holiday bonus required |
No
|
How is severance calculated in Germany?
| Formula |
0.5 months' pay for each year of service. A period of service of more than six months is rounded up to a full year.
|
|---|---|
| Per-year multiplier |
0.5 months of pay
|
| Minimum qualifying tenure |
6 months
|
| Calculation base |
Gross monthly remuneration
|
Worked example
An employee with 5 years of service and an annual gross salary of €30,000 is made redundant. The monthly gross salary is €2,500 (€30,000 / 12). The statutory severance offer would be calculated as: 5 years * 0.5 months/year * €2,500/month = €6,250.