Germany

Currency Euro (€) (EUR)
Payroll Frequency monthly/last day of each month
Capital Berlin
Date Format dd/mm/yyy
VAT 19% standard rate

Employer of record Services
TopSource offers complete payroll, EOR and contractor management services for Germany. TopSource provides Employer of Record services to global companies establishing a presence in Germany that do not wish to be burdened with the complications of Germany employment regulations.
TopSource serves as an outsourced Global Employment Solutions provider. We provide comprehensive employment services such as payroll, payroll related compliances, leave and attendance administration, HR management, and assistance with employer compliances.
If you have an established presence in Germany, our payroll bureau services are available. But if you are seeking to avoid the complications of a subsidiary—or wish to establish a presence quickly an convert to a subsidiary later—our EOR service is ready to support you today.

Services we offer

Payroll Processing
• Payroll bureau solutions for your German entity
EOR
• Employment solutions/leasing • Providing documents associated with employment
• Employee on-boarding process and documentation • Monthly salary calculation
• Salary disbursement to employee’s account • Pay slip generation (If applicable)
• Employee statutory benefits administration and deduction
Supplementary services
• Foreign exchange and money transfer services for payment of employees and 3rd parties

Company formation in Germany
We can help with company registration, company incorporation along with all the necessary documentation in Germany. We can also assist foreign companies to smoothly setup a company anywhere in Germany.

Statutory Compliances
We offer high-quality corporate statutory compliance services in Germany. Our services meet highest standards and meet all your compliance requirements.

  • Minimum Wage

    The minimum wage is 1,473 EUR. ($1728.63)

  • Taxes
    Employer
    9.30% – Pension 7.30% – Health Insurance
    1.50% – Unemployment Insurance 1.28% – Nursing Care Insurance
    1.18% – Accident Insurance
    Employee
    9.30% – Pension 7.30% – Health Insurance
    1.50% – Unemployment Insurance 1.28% – Nursing Care Insurance
    0.00% – Up to 9,000 14.00% – 9,000 – 55,961
    42.00% – 55,961 – 265,327 45.00% – Over 265,327
About Employment in Germany

Working Hours

Full time work is considered 40 hours weekly.

Vacation Days

Employees are entitled to a minimum of 24 days leave, however 30 is common.

Sick days

Employee is entitled to 6 weeks of paid sick days. Following, health insurance covers 70% of your last salary until you either return to work or have to retire because of your health.

Maternity Leave

Mothers are entitled to 6 weeks leave at full pay prior to their child’s birth, and eight weeks at full pay after birth. In the case of premature or multiple births, 12 weeks paid leave is permitted.

Paternity Leave

Leave for both parents fall under the same system of “elternzeit” (parental leave), allowing both mothers and fathers job protection until their child turns 3. This includes step-parent sharing in the child’s care.

Parental Leave

New parents are entitled to 12-14 months with 67% payments, unpaid leave and job security for up to 3 years (or until child reaches 3).

Pension Fund

First pillar: mandatory state pension insurance (gesetzliche Rentenversicherung). This is part of the basic social security system. All employees and employers pay a percentage of salaries into this system (about 9.5% dependent on the region).
Second pillar: voluntary occupational pension insurance.
Third pillar: private insurance. Common practice for private insurance is monthly employee contribution of up to 4% their gross salary and employer contribution of 4% of the gross salary by standard plus half the percentage of the employee’s contribution (maximum 6% employer contribution in total).

Termination/Severance/Social Security

4 weeks written notice must be given to the employee. If the employee has been with the company for over 20 years then the notice period increases to 7 months.
Advance notice must be a minimum of 4 weeks.
For every year an employee was employed by a company 50% of the average monthly wage is paid in severance pay.
Employers contribute 20.55% of workers’ wages. Employees contribute 19.37% of their salary.
To learn more, contact us now.

Contact Sales

0203 6915303
contactus@topsource.co.uk

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