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Germany · EOR
Employ staff in Germany without a German GmbH. We become the legal employer — handling employment contracts, payroll, social insurance, EU Blue Card sponsorship and compliance with German labour law.
German employment law is codified, procedural and strongly employee-protective once probation ends. These are the rules foreign employers hit first.
German employment contracts must be in writing.
Fixed-term contracts of up to 2 years need no objective justification (maximum 4 renewals within that window). Beyond 2 years, objective justification is required or the contract is treated as indefinite.
Probation runs to a maximum of 6 months.
Statutory annual leave is 20 days on a five-day week; market standard is 25–30 days and you will lose candidates below it.
Sick pay is 6 weeks at 100%, employer-paid. After that the health insurer takes over for up to 72 weeks.
Maximum 8 hours per day, extendable to 10 if the average stays within 8 over six months.
Maximum 48 hours per week averaged over a six-month reference period.
€13.90 per hour in 2026, rising to €14.60 from January 2027.
It applies regardless of contract type and is enforced by customs authorities, not the labour courts.
Contributions are split roughly evenly between employer and employee, and each one stops at a ceiling — so the effective employer rate falls as salary rises.
Social insurance — 2026
| Contribution | Employer | Employee | Annual ceiling |
|---|---|---|---|
| Pension (Rentenversicherung) | 9.3% | 9.3% | €101,400 |
| Unemployment (Arbeitslosenversicherung) | 1.3% | 1.3% | €101,400 |
| Health — base (Krankenversicherung) | 7.3% | 7.3% | €69,750 |
| Health — average additional (Zusatzbeitrag) | 1.45% | 1.45% | €69,750 |
| Long-term care (Pflegeversicherung) | 1.7% | 1.7% | €69,750 |
| Accident insurance (Unfallversicherung) | ~1.5% | — | — |
Leave and working time
| Obligation | Details |
|---|---|
| Annual leave (statutory) | 20 days minimum; market standard 25–30 days |
| Sick leave | 6 weeks at 100% employer-paid, then the health insurer for up to 72 weeks |
| Minimum wage | €13.90/hour (2026), rising to €14.60 from January 2027 |
| Working hours | Max 8 hrs/day (extendable to 10); max 48 hrs/week averaged over 6 months |
Rates verified for the 2026 tax year. Figures are indicative — your quote is calculated on the actual salary and contract type.
We support EU Blue Card applications for non-EU nationals, including the employment contract, salary-threshold check and the employer-side documentation the authorities require.
Timelines depend on consulate processing in the employee's country of residence, which is the variable you cannot compress. Everything on the German side runs in parallel.
The Kündigungsschutzgesetz applies once an employee passes 6 months' service in a business above the size threshold. From that point dismissal must be justified on one of exactly three grounds.
Misconduct. Almost always requires a prior written warning (Abmahnung) for the same behaviour.
Long-term incapacity or loss of a required qualification. A high evidentiary bar and rarely used.
Redundancy. Requires a genuine business decision plus social selection (Sozialauswahl) across comparable roles.
Statutory notice runs from 2 weeks during probation to 7 months at 20+ years of service, and lengthens with tenure automatically.
There is no statutory severance entitlement in Germany. In practice, most disputed dismissals settle at 0.5–1.5 months' salary per year of service — budget for it even though the law does not require it.
Where a works council (Betriebsrat) exists it must be consulted before any dismissal. A dismissal issued without that consultation is void regardless of merit.
Charged on top of full employment costs — gross salary and employer social insurance. Nothing else.
No GmbH setup (€25,000 minimum capital, 4–8 weeks). No local director. No German accountant. For 1–10 employees in Germany, EOR is almost always faster and cheaper than an entity.
Yes. Under an Employer of Record arrangement Dhi ADT holds the German employment contract, payroll registration and social insurance obligations. You direct the employee's work exactly as you would your own staff.
A GmbH requires €25,000 in minimum capital, 4–8 weeks to incorporate, a local managing director and ongoing German accounting. Most companies only cross over past roughly 10–15 employees in-country.
Budget roughly 1.20–1.25× gross salary before the EOR fee. Employer social insurance totals about 21–23% of gross, and each component stops at a ceiling — so the effective rate falls for higher earners.
Unlike the Netherlands or Italy, Germany has no mandatory 13th month or holiday allowance, which is why the multiplier is lower than most of Western Europe.
€13.90 per hour, rising to €14.60 from January 2027. It applies to virtually all employment relationships and is enforced by customs authorities.
The Kündigungsschutzgesetz applies after 6 months' service. From then on, a dismissal needs conduct, personal or operational grounds, and a redundancy needs social selection across comparable employees.
There is no statutory severance, but disputed dismissals commonly settle at 0.5–1.5 months' salary per year of service. Plan for that figure rather than the statutory zero.
We support Blue Card applications for non-EU hires, including the contract and employer-side documentation. The 2026 salary thresholds are approximately €48,300/year generally and €43,800/year for shortage occupations such as IT and engineering.
Expect 4–12 weeks to a start date depending on consulate processing. EU nationals need none of this and can start in 5–10 business days.
You do not create one — employees may elect one once a site has five or more permanent staff. Where a works council exists, it must be consulted before any dismissal, and a dismissal issued without consultation is void.
Rates, thresholds and collective-agreement provisions are subject to annual revision and sector variation. This page is general information, not legal or tax advice. Figures are indicative — your quote is calculated on the actual salary and contract type.
15 minutes with our team. We'll confirm your structure, EU Blue Card eligibility and cost breakdown.
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