Germany Employment Basics

From public holidays and vacation to employer cost, sick leave, and notice periods — the practical basics of employment in Germany.

€
Employment Cost (ER)
0,00 €
EOR Fee (BEST)
599,00 €*
EOR Service Fee 599,00 €
Grand Total / Mo. 0,00 €
Security Deposit: A one-time fully refundable deposit (1.5x employment costs) of 0,00 € is required.

Germany at a Glance

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Public Holidays

10-13

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Statutory Vacation

20 Days Minimum

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Working Hours

35-40 per Week

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Employer Social Cost

+21-25%

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Sick Leave Pay

6 Weeks

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Probation Period

6 Weeks

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Minimum Wage

13.90€ per Hour

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Payroll Frequency

Monthly

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Contract Language

German / Bilingual

Navigating German Labor Law

German labor law requires comprehensive documentation. Our contracts ensure full compliance with statutory regulations for all employment relationships.

Evaluation Phase

Probation Period

Probationary periods are optional but widely used by German employers, offering both parties an opportunity to evaluate the employment relationship. The maximum legally permissible duration is 6 months.

Daily Operations

Working Hours

The standard work week in Germany runs from Monday to Friday, with typical office hours from 8:00/9:00 AM to 5:00 PM. German law sets clear limits on daily and weekly working hours.

Remuneration

Overtime Compensation

Unlike some jurisdictions, overtime compensation is not automatically mandated by German law. Instead, regulations are typically defined in employment contracts.

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Statutory Obligations — Germany

Employer Social Security Contributions

Pension Insurance 9.3%

Finances the statutory pension system for employees.

Health Insurance 8.9%

Covers comprehensive statutory health insurance benefits.

Long-term Care Insurance 1.8%

Support for employees in cases of chronic illness.

Unemployment Insurance 1.3%

Financial protection in the event of job loss.

Additional Levies (U1, U2, U3) ~ 3.0%

Paid Time Off

01

Paid Annual Leave

Employees working a standard five-day week are entitled to a minimum of 20 paid vacation days per year, excluding public holidays. This represents the legal minimum — many German employers offer 25-30 days as part of competitive benefits packages.

Legal minimum: 20 days
02

Sick Leave Protection

Employers must continue full salary payments during an initial sick phase (typically up to six weeks), after which remuneration transitions to statutory health insurance benefits. Medical certificates are usually required after three days of absence.

Six weeks full salary
03

Maternity & Parental Leave

Germany offers exceptional protective provisions, including mandatory maternity protection periods, paid paternity benefits, and extended parental leave of up to three years with a legal right to return to an equivalent position.

Job security guaranteed
04

Public Holidays

Between 9 and 13 paid public holidays depending on the federal state. Employers must record applicable holidays based on the employee's place of work and ensure proper remuneration or compensatory time off.

State-dependent
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Termination & Protection

The German Standard

Unlike "at-will" jurisdictions, German labor law provides high levels of protection for employees after their probation period. Understanding these rules is key to a compliant partnership.

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Protection Act (KSchG): Once an employee has been with a company for more than 6 months (and the company has more than 10 employees), termination is only legally valid if it is socially justified.
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Notice Periods: Statutory notice periods range from 4 weeks up to 7 months, depending on the length of service. Most professional contracts in Germany settle on a standard of 3 months to the end of a quarter.
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Three Grounds for Dismissal: A contract can generally only be terminated based on personnel-related (e.g., long-term illness), conduct-related (e.g., breach of contract), or operational (e.g., restructuring) reasons.
worknow Tip: We always recommend a mutual termination agreement (Aufhebungsvertrag) as a cleaner, faster alternative to unilateral dismissal, often involving a severance payment.
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