GERMANY PEO & EOR
Hire in Germany without
a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Germany today with Gibson Watts Global.
DID YOU KNOW
- Germany has 55 UNESCO World Heritage Sites, making it one of the countries with the most sites globally—ranking third after Italy and China—with 52 cultural and 3 natural sites.
- Germany is the world’s third-largest exporter, behind China and the United States, with machinery, vehicles, and chemicals among its top exports.
- Germany has one of the highest employment retention rates in Europe, supported by strong worker protections, collective bargaining coverage, and long-term contracts—making it an attractive market for companies seeking a stable, skilled workforce
Forget software,
this is expansion
with a human touch
Germany EOR SERVICES
Facilitating Seamless Hiring in Europe’s Economic Powerhouse
Germany’s central location, strong economy, and highly skilled workforce make it an attractive base for European expansion. As the EU’s largest economy and a leader in sectors like engineering, manufacturing, and technology, it offers direct access to major markets. However, navigating its detailed employment laws and social security system can be challenging without local expertise.
By partnering with Gibson Watts Global as your Employer of Record in Germany, you gain a compliant and reliable way to hire and manage employees—without needing to establish your own legal entity. We take care of payroll, compliance, social contributions, and more, freeing you to focus on your business growth.
Working in GERMANY
Financial Year Dates
Germany’s financial (tax) year mirrors the calendar year: January 1 to December 31.
Minimum wage
Since January 1, 2025, the minimum wage is €12.82 per hour (pre-tax)
Standard working hours
Standard full-time employment is typically 35–40 hours per week, often structured as five working days with core business hours around 9 AM to 5 PM.
Overtime
Overtime arrangements vary by sector and employment contract, often paid as overtime premiums. Standard German law doesn’t mandate specific overtime rates nationally; these are governed by contract or collective agreements.
Holiday Allowance
Employees are legally entitled to at least 20 working days (4 weeks) of paid annual leave, though many employers offer 25–30 days, especially under collective bargaining agreements.
Sick Leave
Employees receive full salary for up to 6 weeks through employer-paid sick pay (Entgeltfortzahlung). From the 7th week onwards, statutory health insurance provides Krankengeld, typically around 70% of gross pay (up to a cap).
Maternity/Paternity leave
- Maternity leave: 14 weeks total—6 weeks before and 8 weeks after childbirth.
- Parental leave: Up to 3 years per parent, with partially paid government support (Elterngeld), typically for up to 14 months shared between both parents.
Public holidays
Germany observes several national public holidays including—but not limited to:
- New Year’s Day
- Easter Monday
- May Day (Labor Day)
- German Unity Day (October 3)
- Christmas Day
- Second Christmas Day
Social Contributions
Employers:
- Pension Insurance: 9.3%
- Health Insurance: 7.3% + half of the average supplementary contribution (approx. 1.25%)
- Long-Term Care Insurance: 1.8%
- Unemployment Insurance: 1.3%
- Accident Insurance: Industry-dependent rate, employer-paid only
- Insolvency Levy: 0.15%
Employees:
- Pension Insurance: 9.3%
- Health Insurance: 7.3% + half of the average supplementary contribution (approx. 1.25%)
- Long-Term Care Insurance: 1.8% (with children) or 2.4% (without children)
- Unemployment Insurance: 1.3%
Income Tax
Germany’s personal income tax is progressive, with rates ranging approximately from 14% to 45%, depending on income (e.g., 0% up to ~€12,096, rising to 45% for incomes over €277,826).
Residents are taxed on worldwide income, while non-residents are taxed on Germany-sourced income only.
Health Care
Germany has a statutory health insurance (GKV) system, which is mandatory for most employees earning below the ceiling (about €73,800/year in 2025)—above which private insurance becomes an option.
It covers medical treatments, hospital services, dental care, and more. Sickness, maternity benefits, and parental support (Krankengeld, Mutterschaftsgeld) are provided via GKV.
Visas
Foreign nationals employed in Germany must obtain the appropriate permissions:
- Work Visa/Residence Permit: Required for non-EU nationals; often tied to specific job roles, qualifications, or salary thresholds.
- EU Blue Card: An option for highly skilled workers with relevant degrees and salary above a defined threshold.
- Family Reunification: Dependents may join the worker under certain conditions.
- Self-Employed/Business Visas: Available for those starting businesses, investments, or freelancers under specific criteria.
13th salary?
Germany does not have a statutory requirement for a 13th-month salary. However, many employers—especially in manufacturing, automotive, and large enterprises—offer 13th-month bonuses, typically at year-end.
For your reference on bonus practices: see Gibson Watts Global’s complete guide: 13th-14th salary guide.
Culture in Germany
Germany is a country with a rich and diverse cultural heritage, shaped by its history, geography, and the many communities that have lived there over centuries. It is renowned for its contributions to art, literature, philosophy, and music, while remaining open to new ideas and global influences. This combination makes Germany a vibrant destination for experiencing a wide range of customs and traditions.
Germany is also famous for its festivals and cultural events. Oktoberfest, the world’s largest beer festival, attracts visitors from around the globe, while Christmas markets and regional cultural celebrations highlight the country’s deep-rooted traditions.
Languages
The official language is German, spoken as a first language by over 95% of the population. Minority languages include Sorbian and North Frisian, and many Germans are highly proficient in English, often ranking among the best non-native speakers worldwide.
Religion
Germany is intercultural and multi-religious. Christianity is the largest religion, with around two-thirds of the population identifying as Christian, though active religious practice is lower. Other religions, including Islam, Judaism, and Buddhism, contribute to Germany’s diverse spiritual landscape.
