Hiring guide · EMEA
How to hire in Germany
To hire in Germany you need a registered employer with a company number for social insurance and wage tax, or an Employer of Record that holds one. Employer social contributions add roughly 21% to gross salary, split across pension, health, unemployment and long-term care insurance.
- Currency
- EUR
- Payroll cycle
- Monthly
- Employer cost
- ~21%
- Notice
- 4 weeks, rising with service
The talent market in Germany
Germany is the largest talent market in Europe and the strongest for industrial software, embedded systems, automotive technology and enterprise infrastructure. Berlin, Munich and Hamburg carry the startup and product depth; the Rhine-Ruhr and Stuttgart corridors carry the engineering and manufacturing depth.
Employment protection is substantial. After six months in a business with more than ten employees, dismissal requires a legally recognised reason, and works council consultation applies where one exists. Written contracts in German, correct notice and documented grounds matter more here than in common-law markets.
Salary benchmarks in Germany
Indicative annual gross base salary in EUR for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | EUR 65,000 – 85,000 |
| Senior software engineer | EUR 85,000 – 115,000 |
| Account executive (SaaS) | EUR 60,000 – 80,000 base + variable |
| Customer support specialist | EUR 38,000 – 50,000 |
Employment rules and payroll in Germany
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
40 hours; 8 hours per day standard under the Working Time Act
Probation
Up to 6 months, with two weeks' notice during it
Notice period
4 weeks to the 15th or month-end, extending with length of service
Paid leave
20 days statutory minimum on a five-day week; 27–30 days is market
Public holidays
9 nationwide, up to 13 depending on the federal state
Payroll cycle
Monthly, with mandatory itemised payslips
Employer contributions
~21%: pension, health, unemployment, long-term care and accident insurance
Contractor, EOR employee or your own entity?
Three ways to engage someone in Germany. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in Germany
Scheinselbstständigkeit — false self-employment — is actively investigated by the Deutsche Rentenversicherung. A contractor who works mainly for one client, follows fixed hours and is integrated into the team is reclassified, and the client owes up to four years of back social contributions, both employer and employee shares, with criminal exposure in serious cases.
Work permits and right to work
EU, EEA and Swiss nationals need no permit. Non-EU nationals typically require an EU Blue Card, which needs a recognised degree and a salary above an annually set threshold, or a skilled-worker residence permit under the Skilled Immigration Act. Both are tied to a specific employer, so an EOR arrangement must be structured with the partner as the sponsor.
Hire in Germany without an entity
Our Employer of Record page for Germany covers statutory cost, compliance obligations and onboarding timelines in detail, through licensed in-country partners.
EOR in Germany- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in Germany: frequently asked questions
Can we hire in Germany without a GmbH?
Yes. A German Employer of Record employs the person under its own registration for wage tax and social insurance. Setting up a GmbH takes two to three months and EUR 25,000 of share capital, so an EOR is the usual route for the first few hires.
How much does a German employee cost above gross salary?
Approximately 21% in employer social contributions — pension, statutory health, unemployment, long-term care and accident insurance — with some elements capped at income thresholds. Add the EOR fee and any voluntary benefits such as a mobility allowance.
How hard is it to terminate an employee in Germany?
After six months in a business with more than ten employees, the Dismissal Protection Act requires a person-related, conduct-related or operational reason, correct notice and often a negotiated settlement. Exits are planned and costed in advance rather than executed at will.
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Get the Germany Hiring Cost Guide
A country brief covering fully loaded employment cost in EUR, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for Germany.