Employer of Record in Germany (EOR in Germany)

When you work with a reliable EOR in Germany to manage all important HR responsibilities, including payroll, contract administration, and guaranteeing tax compliance, the cost is calculated as a monthly fee calculated as a portion of the co-employed workers’ salary. 

 Working with an EOR will allow you to hire or relocate people in Germany in a safe, practical, and legal manner. You can use this outsourcing option on a short-term or long-term basis while setting up your own business structure abroad. 

When an employee is managed by an EOR or Professional Employer Organization (PEO) in Germany, they have access to a number of benefits, including full legal protection, local understanding of all employer responsibilities, quick and accurate payment, improved employee perks, and more. 

While maintaining complete control over their work process, contractors who interact with consumers through a PEO have access to all the same employment perks and protections as regular employees. 

Yes, an EOR in Germany takes into consideration any differences in local or regional employment regulations to give you global protection wherever you are. 

Payroll expenses must account for indirect expenditures like social insurance contributions, bonuses, or incentives in addition to wages and any payments made to recruiting firms or experts. 

Also, while signing incentives are optional, they could make you stand out to potential new coworkers and therefore should be factored into recruitment costs if chosen. 

With certain EOR organizations, there may be a minimum or maximum number of employees you may hire. However, with INS Global, you may co-employ as many or as few employees as your development strategy demands. 

Like many other countries, Germany has effectively adjusted to employee remote work options since the COVID-19 outbreak. The alternative between a physical workspace and a home office should be available to employees of a German-based corporation both for fair employment practices and as a competitive incentive. 

Our recruiting team members are familiar with regional best practices, have access to professional networks, and are informed about both offline and online business resources. 

In Germany, professional staffing companies or recruitment agencies frequently charge a hiring fee that is calculated as a portion of the new hire’s first gross monthly salary.  

Yes, the recruitment, PEO, and Employer of Record services INS Global offers are advantageous to both German nationals and foreign residents. 

Employees in Germany are required to be paid at least once per month with a written pay slip provided as proof that breaks down gross pay and all relevant payroll deductions.  

Currently, the German federal minimum wage is 12 euros per hour. 

As a member of the EU, those seeking to live and work in Germany for longer than 90 days are subject to largely the same types of visa as are available in other EU countries.  

Currently, applicants can choose between a Temporary Residence Permit, an EU Blue Card, an EC Long-Term Stay Permit, and a Permanent Settlement Permit. These generally include the ability to travel and move within the Schengen Area. 

All employee salaries are subject to social security contributions based on a percentage of the employee’s gross salary. These contributions are shared equally between employer and employee.  

Employer contribution amounts are for Pension (9.3%), Unemployment (1.2%), Long-Term Care (1.525%), and Healthcare (7.3%).  

Thanks to a robust social security system, workers in Germany are eligible for all the usual statutory employee benefits like parental leave, healthcare, annual and sick leave, and more.  

In addition, to remain competitive many companies in Germany now offer fringe benefits like a flexible schedule, wellness packages, and home office support.  

All changes to employee contracts must be made through the agreement of both employer and employee to be counted as valid. Written contract benefits may not go below statutory federal minimums.  

Everyone who pays social security as part of their salary in Germany pays into their public health insurance fund. Should an employee need to receive treatment or take paid sick leave, this is at least partially paid for via their health insurance.  

While there are no mandated guidelines for severance in Germany, in order to avoid a termination dispute employees can expect around 50% of a month’s salary per year of service with a company as part of a severance package. 

Aside from the German Basic Law Code, which includes a lot of regulations concerning labor practices, there are also labor courts at local, regional, and federal levels that act as the arbitrators and guarantors of most labor requirements.  

Depending on the state, there are around 10-13 days of public holidays per year in Germany. These are paid holidays in addition to annual leave, with workers requested to perform duties on them being expected to receive an additional salary even though this is not mandated by law.