When are social security contributions due in Germany?

Contributions for a month are due on the third-to-last banking day of that same month, before many employers run payroll. Payroll teams estimate the amount and correct it the next month. Wage tax follows by the 10th of the next month.

What protection do employees in Germany have after probation?

Once an employee has 6 months of service at a company with more than 10 staff, the Dismissal Protection Act applies. A dismissal then needs a reason tied to conduct, capability, or business needs. Many exits end in a negotiated settlement.

How does Good Balance Global hire employees in Germany?

As your Employer of Record (EOR), we employ your hire under a German contract that meets the Evidence Act requirements. We register the employee with a health fund, run payroll in euros, and pay social security and wage tax on time.

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Payroll and benefits guide

Germany

CapitalBerlin

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyEUR (Euro)

Payroll FrequencyMonthly

Employer Taxesapprox. 21.3% – 24%

Employee Costs21.15% – 21.75%

Overview

Languages: German
Income tax: 0% – 45%
VAT: 19%; Reduced rates: 7%

Contributions

Employer

9.3%

Pension insuranceUp to EUR 101,400/year (2026)

1.3%

Unemployment insuranceUp to EUR 101,400/year (2026)

8.75%

Health insurance7.3% general rate plus half of the average 2.9% supplementary rate; up to EUR 69,750/year (2026)

1.8%

Long-term care insuranceUp to EUR 69,750/year (2026)

0.15%

Insolvency levyUp to EUR 101,400/year (2026)

Varies

Sickness and maternity pay levies (U1/U2) and accident insuranceSet by the health fund and the sector accident insurer

approx. 21.3% – 24%

Total employer cost

Employee

9.3%

Pension insuranceUp to EUR 101,400/year (2026)

1.3%

Unemployment insuranceUp to EUR 101,400/year (2026)

8.75%

Health insuranceIncludes half of the supplementary rate, which varies by fund

1.8% – 2.4%

Long-term care insurance2.4% for childless employees aged 23+; lower for parents of 2+ children under 25

21.15% – 21.75%

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

Tax office (Finanzamt)

Paid To

Wage tax, solidarity surcharge, and church tax

Due Date

10th day of the following month

Method

Electronic wage tax return via ELSTER and bank transfer

Authority Payment

Employee's statutory health insurance fund

Paid To

All social security contributions

Due Date

Third-to-last banking day of the current month

Method

Electronic contribution statement and bank transfer or direct debit

Minimum Wage & Working Hours

Minimum wage: EUR 13.90 / Hourly; Effective 1 January 2026; scheduled to rise to EUR 14.60 on 1 January 2027
Standard working hours: 8 hours per day, typically 38–40 hours per week; Daily hours may extend to 10 if the 6-month average stays at 8
Overtime: No statutory overtime premium; pay or time off is set by the contract or collective agreement

Leave

Annual leave20 working days (5-day week)Most employers offer 25–30 days
Sick leaveFor the length of certified illnessEmployer pays 100% of salary for 6 weeks; the health fund then pays sickness benefit of 70% of gross (capped at 90% of net)
Maternity leave6 weeks before and 8 weeks after birth12 weeks after premature or multiple births; the health fund pays up to EUR 13/day and the employer tops up to net pay
Paternity leaveNo statutory paternity leaveFathers use parental leave (Elternzeit)
Parental leaveUp to 3 years per parentUnpaid by the employer; the state pays parental allowance (Elterngeld) of 65–67% of net income, capped at EUR 1,800/month
Public holidays9 national days plus state holidays (10–13 in total)

Leave type	Duration	Notes
Annual leave	20 working days (5-day week)	Most employers offer 25–30 days
Sick leave	For the length of certified illness	Employer pays 100% of salary for 6 weeks; the health fund then pays sickness benefit of 70% of gross (capped at 90% of net)
Maternity leave	6 weeks before and 8 weeks after birth	12 weeks after premature or multiple births; the health fund pays up to EUR 13/day and the employer tops up to net pay
Paternity leave	No statutory paternity leave	Fathers use parental leave (Elternzeit)
Parental leave	Up to 3 years per parent	Unpaid by the employer; the state pays parental allowance (Elterngeld) of 65–67% of net income, capped at EUR 1,800/month
Public holidays	9 national days plus state holidays (10–13 in total)

Termination

Probation period: Up to 6 months, with 2 weeks of notice
Notice period: 4 weeks to the 15th or end of a month; employer notice rises with service to 1 month (2 years), 2 months (5 years), and up to 7 months (20 years)
Severance pay: No general statutory severance; settlements commonly use 0.5 months of salary per year of service as a benchmark
13th salary: Not mandatory; Christmas bonuses are common through contracts or collective agreements
Notes: After 6 months, the Dismissal Protection Act applies at companies with more than 10 employees; notice must be in writing

Benefits

Statutory social insuranceMandatory
Health, pension, unemployment, long-term care, and accident insurance
Company pension (bAV)Mandatory
Employees have a right to salary conversion; employers add at least 15% when they save social security
Public transit ticket subsidyCommon
Tax-free employer contribution, often to the Deutschlandticket
Meal allowanceCommon
Tax-advantaged meal vouchers or digital lunch benefits

Visas & Work Permits

EU Blue Card
Duration
Up to 4 years
Requirements
Recognized degree and a job offer meeting the salary threshold
Lower threshold for shortage occupations and recent graduates
Skilled worker residence permit
Requirements
Recognized vocational or academic qualification and a job offer
Approval from the Federal Employment Agency is usually needed
Opportunity Card
Duration
Up to 1 year
Requirements
Points-based eligibility
Allows job search and part-time work

FAQ

Sources

Last updated: November 1, 2026

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