GERMANY PEO & EOR
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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 is particularly famous for its Automotive market, creating leading brands such as Volkswagen, BMW, Porsche, Mercedes-Benz
- The German language is the most widely used language in the European Union, with Austria, Belgium and Luxembourg also using it as their official language
- Germany is a mixed economy, with strong public services including healthcare, insurance and education provided
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Germany PEO Services
The market of international brands
Germany is the largest economy in the European Union and the fourth largest in the world after the USA, China, and Japan. The German economy is highly innovative and focuses on exports, with a number of well-known international brands including Volkswagen, Mercedes, BMW, Adidas, Siemens, and Deutsche Bank. The German economy also houses a large portion of specialised small-to-medium sized businesses, and oversees the fast growth of many innovative start-ups.
These accolades, coupled with Germany’s stable trading economy, offers a highly developed political and economic framework for companies looking to do business in Germany. Germany’s position in the European Union also opens a diverse broad European market for Germany businesses. International businesses can enter the German and European market with the use of a PEO or EOR model.
With capacity as a Germany PEO, Gibson Watts Global can provide a cost-effective, transparent and quick route for international businesses to hire staff in Germany, and start benefiting from this country’s unique economy.
Working in GERMANY
Financial Year Dates
Germany’s financial year runs from 1st January to 31st December
Minimum wage
As of January 2024, minimum wage is currently €12.41
Standard working hours
A typical work week is Monday to Friday, with working hours 9am till 5pm. Employees work between 36 and 40 hours split between the 5 days. Sunday and public holidays are generally prohibited from working with some exceptions. If an employee works on either a Sunday or public holiday, then the employer must compensate the employee with time off over the coming weeks.
Overtime
There are currently no regulations on overtime pay, meaning employees working additional hours are compensated at their standard rate. Maximum working weekly hours in Germany cannot exceed 48 hours.
Holiday Allowance
Employees who work a 5-day week are entitled to a minimum of 20 days’ holiday per year. However, most employers offer additional holiday entitlement as part of their employment contracts. Typically, this would be between 25 and 30 days.
Sick Leave
After an employee has been employed for 4 weeks, they are entitled to 6 weeks paid sick leave over the year. Multiple sick leave is permitted so long as the length of leave does not exceed 6 weeks. Any additional leave is provided though the health insurance fund, which is a sickness benefit known as Krankengeld. Krankengeld generally pays employees between 70-90% of their standard salary and covers up to 78 weeks leave in a 3-year period.
Maternity/Paternity leave
New mothers in Germany are automatically given six weeks of compulsory full paid leave before the birth, and eight weeks afterwards.
From 2024, fathers in Germany will automatically receive paid Vaterschaftsurlaub (paternity leave) for two weeks following the birth of their child. Previously, there was no guaranteed time off apart from the day of birth.
Public holidays
German holidays fall a little short compared to its neighbours in other European countries, with around 9 public holidays on average.
- New Year’s
- Good Friday
- Easter Monday
- Ascension Day
- Whit Monday/Pentecost Monday
- 1st May
- Day of German Unity
- Christmas Day
- Boxing Day
Social Contributions
In Germany, social security contributions are split between the employee and the employer, and are paid as a percentage.
Social Security | Total Contribution | Employees share of total contribution | Employers share of total contribution |
Health insurance | 14.6% | 7.3% | 7.3% |
Long term care insurance: No children 1 child 2 children 3 children |
4% 3.4% 3.15% 2.9% |
2.3% 1.7% 1.45% 1.2% |
1.7% 1.7% 1.7% 1.7% |
Pension Insurance | 18.6% | 9.3% | 9.3% |
Unemployment Insurance | 2.6% | 1.3% | 1.3% |
Income Tax
| 2024 tax bracket annual income | Tax rate |
| Up to €11,604 | 0% |
| €11,605–66,760 | 14-42% |
| €66,761–277,825 | 42% |
| €277,826 and above | 45% |
Health Care
Germany has a highly rated Public Healthcare system offered to all residents, which is funded through social security contributions and government top ups. The system covers a wide range of services, including:
- Preventative Services
- Inpatient and outpatient hospital care
- Physician Services
- Mental Healthcare
- Dental Care
- Prescription Medication
- Medical Aids
- Rehabilitation
- Hospice and Palliative Care
Maternity Care
Visas
Anyone who wishes to seek employment in Germany is required to obtain a residence permit in the form of a visa. It’s important to note that the German work visa is officially called a residence permit for the purpose of employment, but the terms work visa, work permit, and residence permit are used interchangeably.
A D visa allows non-EU nationals to enter Germany and then apply for a work visa.
A Job-Seeker Visa is also an option if you want to go to Germany and find a job. This visa is valid for six months, during which time you have to look for and find work.
Taxes
If you earn less than 10,908 EUR per year, you don’t pay income tax. The median income tax rate is around 18% and the maximum income tax rate is 45%.
Culture in Germany
Germany is a country with a rich and diverse culture that has been shaped by its history, geography and the many different ethnic groups that have lived there over the centuries. The culture of Germany is often associated with its famous contributions to art, literature, philosophy and music.
In addition to its rich cultural heritage, Germany is also a country that is open to new ideas and cultural influences, making it a melting pot of cultures and a great place to experience a wide range of different customs and traditions.
Germany is also famous for its festivals and cultural events, such as Oktoberfest, which is the largest beer festival in the world, and the famous Christmas markets that many travel from afar to visit.
Languages
Naturally, the official language of Germany is German, with over 95% of the population speaking German as their first language. Some minority languages include Sorbian and North Frisian. Citizens of Germany have often been named some of the best non-native English speakers in the world.
Religion
Germany is an intercultural and multi-religious country. The main religion in Germany is Christianity, with around two-thirds of the population identifying as Christian, but the number of practicing Christians is significantly lower.
