Business · Employer of record

Employer of record in Germany

Employing someone in Germany through an employer of record: social security on top of salary, the minimum wage, leave, notice, sick pay, and the 18-month limit that applies to employers of record there.

Checked on 16 October 2026. The headline rules for a standard employee, from official sources where they opened and law firm, PwC or specialist publisher guides where they didn't; each line names its source. Sectors, collective agreements and contracts can change them. This is general information, not legal advice.

Know this first

  1. In Germany an employer of record placing someone with a foreign client is treated as temporary agency work: it needs a licence, and the person can work for the same client for at most 18 months in a row. Without a licence the contract is void and the worker can become the client's employee, with fines for the client of up to €30,000. Ask your provider how it handles this.
  2. A works council can be set up with at least five permanent employees.

Sources: Rödl & Partner, employer of record in Germany, August 2026, Bird & Bird, German employment law basics, 2025

Employing someone in Germany

Employer costs on top of salary
About 21.3% (our sum): pension 9.3%, unemployment 1.3%, health 7.3% plus half the health fund's top-up (2.9% on average in 2026), long-term care 1.8% and an insolvency levy of 0.15%, plus accident insurance and the U1, U2 and U3 levies, which vary. Pension and unemployment stop at €8,450 a month; health and care at €69,750 a year. PwC Worldwide Tax Summaries, Germany, June 2026, Deutsche Rentenversicherung, 2026 figures
Minimum wage
€13.90 an hour from 1 January 2026, rising to €14.60 in 2027. Bundesregierung, minimum wage, September 2026
Holiday
At least 20 paid days a year on a five-day week. Public holidays are set mostly by each state. Bird & Bird, German employment law basics, 2025
Working hours
Eight hours a working day, or up to ten if it averages eight over 6 months or 24 weeks. Sunday work is generally not allowed. Arbeitszeitgesetz (ArbZG)
Notice from the employer
Four weeks to the 15th or the end of a month, rising with service: one month after 2 years, two after 5, three after 8, four after 10, five after 12, six after 15 and seven after 20. Arbeitskammer des Saarlandes, notice periods, December 2025
Severance
No general right to severance. Dismissal protection applies after 6 months in a business with more than 10 employees; an employer can offer half a month's pay per year of service for a redundancy the employee doesn't challenge. Bird & Bird, German employment law basics, 2025, Kündigungsschutzgesetz, in a Bundesagentur für Arbeit compendium
Extra pay the law requires
None found in law; Christmas bonuses are common but optional. Make it in Germany, work contracts
Contract
No general form required. Since 1 January 2025 the main terms can be given in text form, such as email, if the employee confirms receipt; some sectors still need writing, and fixed-term contracts need a signature. Bird & Bird, German employment law basics, 2025, CMS, the Nachweisgesetz, April 2025
Payroll and tax
Income tax is withheld at source from wages. PwC Worldwide Tax Summaries, Germany, tax administration
Sick pay
The employer pays 100% of pay for the first 6 weeks of illness. Bird & Bird, German employment law basics, 2025

Providers and what they say about Germany

What each provider's own website says about Germany, in order of its published starting price. None of them publishes a separate price for Germany; the starting prices are worldwide or regional (Papaya quotes EUR 650 in Europe), and what you pay is set by quote.

ProviderCovers Germany?What it saysStarting price a month
SkuadYes, on its own siteListed in its coverage listFrom USD 199Go to Skuad
Pebl (formerly Velocity Global)Yes, on its own site-USD 399Go to Pebl (formerly Velocity Global)
MultiplierYes, on its own siteSays it uses its own entities everywhereFrom USD 459 (annual), USD 499 monthlyGo to Multiplier
DeelYes, on its own siteSays it has its own entityFrom USD 599Go to Deel
RemoteYes, on its own site-From USD 599Go to Remote
G-P (Globalization Partners)Has its own page for it-From USD 599Go to G-P (Globalization Partners)
Atlas HXMYes, on its own siteSays it has its own entityFrom USD 599Go to Atlas HXM
Papaya GlobalYes, on its own siteSays its German partner is the employerFrom USD 650 (EUR 650 in Europe)Go to Papaya Global
OysterYes, on its own site-From USD 699Go to Oyster
RipplingNot statedSays 80 countries, with no listQuote onlyGo to Rippling

Coverage is each company's own claim, from its country pages and coverage lists; we haven't checked how each one employs there. Ask whether it uses its own company or a partner in Germany.

Other countries

Employer costs, leave, notice, severance and the catches, with the providers that cover each one.

United KingdomIrelandFranceNetherlandsSwedenSwitzerlandBelgiumSpainPortugalItalyPolandRomaniaCanadaAustraliaSingaporeJapanIndiaPhilippinesSouth AfricaMexicoBrazilColombiaChileArgentina

All 25 countries side by side: employer cost at your salary, holiday, notice and redundancy pay

Where this comes from. Government, social security and labour ministry pages, the laws themselves, PwC Worldwide Tax Summaries, law firm briefings and specialist publishers, each named next to what it supports, and each provider's own website for what it covers. All read on 16 October 2026. Totals marked "our sum" are our addition of the source's rates.

This is not legal or tax advice. Rules change, and sectors and collective agreements add their own. Ask your provider, or a local adviser, for the rules that apply to your hire.

How we make money from this page. Some links may earn us a commission, and they are marked "Affiliate link" where they do. The providers appear in order of published starting price, which doesn't depend on that.