Germany

Last Update by Marta, 13 Dec 2024

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Exchange Rate

22 Jan 2025

 

Cost of Living

Indicative value for a working adult in a city: Berlin

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (EUR)
McDonalds Set Meal 10
Monthly Train and Bus Tickets 50
3 Bedrooms Rental (City Center) 2,275
3 Bedrooms Rental (Outskirt) 1,690

Current Inflation Rate

1.9%

Wage

Minimum Wages

  • 12.41 EUR per hour

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (EUR)
Entry-Level
Fresh Graduate
 3,000
Mid-Level
5 Years
 5,000
Experienced & Managerial Level
10 Years
 >7,500
Specialized & Senior-Level
15 Years
 >8,200

Annual Salary Growth

2.6%

Statutory Contribution

Both the employer’s contribution and the employee’s contribution must be transferred to the health insurance provider no later than 3 working days before end of the month

Country Level

Type Employer Rates Employee Rates Notes
Pension Insurance 9.3% 9.3% Max. contribution base - 7,550 EUR
Unemployment Insurance 1.3% 1.3% Max. contribution base
West - 7,550 EUR
East - 7,450 EUR
Health Insurance 7.3% 7.3% The health insurance company may impose an additional commission, usually from 0.39% to 1.7%.
Max. contribution base - 5,175 EUR
Care Insurance 1.7% 1.7% Supplement for childless people aged 23 and over
U1 - Salary continuation insurance 1%-4% - All businesses with fewer than 30 regular staff must participate
U2 - Maternity fee 0.15% to 0.99% - All staff with 4 weeks continuous service
U3 - Bankruptcy fee 0.06% - All employers are liable

Other Benefit

Other common employment benefits in Germany include:

  • Inflation relief bonus: up to EUR 3,000
  • Food voucher: Around 7,23 EUR / day (taxable if the amount is higher)
  • Co-financing for sports activities: Around EUR 50
  • Private health insurance: employer contributes 8.15% of staff gross monthly salary
    For employees who exceed the annual limit
    Capped at EUR 422
  • Additional days off:
    It is typical practice to provide employees with additional days of paid leave
    Usually around 5-15 additional days

Income Tax

Residents

  • Tax Year: 1st Jan to 31st Dec
    Tax filing period: 31st Jul (following year) - 28th Feb (second year of the following year)

Country Level

Taxable Income Rate
< 11,604 0%
11,604 - 66,760 14% - 42%
Geometrically progressive rates
63,515 - 277,825 42%
> 277,826 45%

Non-residents

  • Depends on the double taxation agreement between countries. Typically, only income originating in German is taxed.
  • A tax resident is an individual who meets one of following criteria:
    - Residence in Germany for at least 183 days in a calendar year
    - Have their centre of life interests in Germany

Working Hours

Statutory

40 hours
8 hours a day, 5 days a week

Typical practice

40 hours
Some collective agreements will provide for shorter weekly working hours of 35-38 hours
Monday-Friday

Overtime

The number of working hours cannot exceed 48 hours per week

  • Remuneration for overtime work is included in the employment contract or collective agreement.
    Minimum: 100% of basic salary

Employment Contract

Permanent

Contract Format

In writing in German or in another language understandable to both parties

Payroll Currency

EUR

Probation

Up to 6 months

Contract Period

No minimum duration

Termination

The contract may be terminated by the employer, the employee or by mutual agreement

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation - 2 weeks - 2 weeks - 2 weeks
Notice Period - Regular - In writing rounded up to 15th or the end of a calendar month

- 4 weeks minimum notice required		 - Up to 2 years - 4 weeks, rounded up to 15th or the end of a calendar month

- 2-4 years - 1 month to the end of a calendar month

- 5-7 years - 2 months to the end of a calendar month

- 8-9 years - 3 months to the end of a calendar month

- 10-11 years - 4 months to the end of a calendar month

- 12- 14 years - 5 months to the end of a calendar month

- 15-19 years - 6 months to the end of a calendar month

- 20 years or longer -7 months to the end of a calendar month		 - Up to 2 years - 4 weeks, rounded up to 15th or the end of a calendar month

- 2-4 years - 1 month to the end of a calendar month

- 5-7 years - 2 months to the end of a calendar month

- 8-9 years - 3 months to the end of a calendar month

- 10-11 years - 4 months to the end of a calendar month

- 12- 14 years - 5 months to the end of a calendar month

- 15-19 years - 6 months to the end of a calendar month

- 20 years or longer -7 months to the end of a calendar month
Severance Pay - - Common practice no statutory requirements

- Half a months' salary for each year of service		 - Common practice no statutory requirements

- Half a months' salary for each year of service

Public Holiday

9 days + public holidays for a specific region

Country Level

Date Name
01 Jan New Year's Day
18 Apr Good Friday
21 Apr Easter Monday
01 May Labour Day
29 May Ascension Day
09 Jun Whit Monday
03 Oct Day of German Unity
25 Dec - 26 Dec Christmas Day

State/Province Level

Baden-Württemberg

Date Name
06 Jan Epiphany
19 Jun Corpus Christi
01 Nov All Saint's Day

Leave

Leave Type Entitlement Notes
Annual Leave 20 days - employees working 5-day week
24 days - employees working 6-day week 		Staff with 6 months continuous service
1/12 holiday leave for each month of work
Sick Leave Up to 6 weeks All staff
Maternity Leave 14 weeks
6 weeks before childbirth, 8 weeks after childbirth 		All expectant mothers
Parental Leave Up to 3 years All staff who is a parent
Occasional Leave Up to 4 days Al staff for passing for a family member, relocation and mandatory medical treatment

Reference

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