Good to know
Local Currency: Euro (EUR)
Minimum salary: 10,45€ gross per hour (since July 1, 2022) An increase to 12€ gross per hour is planned for October 1st., 2022.
Tax Year: 1st January – 31st December
Legal working hours: 40 hours for a 5-day week / 48 hours for a 6-day week.
About Germany
Germany is seen to be one of the world’s most welcoming countries for businesses looking to expand into their market. It is Europe’s largest economy and offers employers access to a well-educated workforce.
The country offers many benefits for businesses, but for any business looking to expand to Germany, it can be a complicated and time-consuming process to keep up with its legislations for Payroll and HR.
Are you looking to settle in Germany? Do you need help with payroll or human resources management?
Our German payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
Ready to Benefit from German HR & Payroll Experts?
German Income Tax (Einkommensteuer)
In Germany, income tax is progressive and its rate varies according to the taxable income of the taxpayer. The tax rates vary between 14% and 42%. The income bracket above 277,826€ is subject to a constant rate of 45% (2022). For a couple or a family, the rate is doubled.
German income tax scale (2022) |
||
|
Taxable income for a single employee |
Taxable income for a couple/family | Amount |
|
0 to 9 984€ |
0 to 19 969€ | 0% |
|
9 985€ to 14 926€ |
19 970€ to 29 853€ | 14% to 23,97% Progressive rate |
|
14 927€ to 58 596€ |
29 854€ to 117 193€ |
23,97% à 42% Progressive rate |
|
58 597€ to 277 825€ |
117 194€ to 555 651€ |
42% Constant rate |
|
277 825€ and more |
555 652€ and more |
45% Constant rate |
Solidarity Surcharge (Solidaritätszuschlag)
The solidarity surcharge is a tax that corresponds to 5.5% of the income tax. Since 2021, this surcharge is levied when the income tax is higher than 16 956 € for a single employee or higher than 33 912 € for a married couple.
Church Tax (Kirchensteuer)
In Germany, anyone who is declared to be a member of the Catholic or Protestant faith must pay a church tax. The rate of this tax varies between 8 and 10% of the income tax, depending on the federal state in which you live.
Social security in Germany
The German statutory social security system consists of 5 insurance branches:
- Pensions
- Sickness and maternity
- Dependency
- Accidents (for occupational injuries and diseases)
- Unemployment
Contributions
Social insurance in Germany is mostly financed by employee and employer contributions.
Family benefits are financed entirely by taxes.
Employer and employee contribution rates | ||||
| Contributions | Employer | Employee | Monthly ceiling – Former Länder | Monthly ceiling – New Länder |
| Sickness-maternity | 7,3% | 7,3% (1) | 4 837,50€ | 4 837,50€ |
| Old age, disability, death | 9,3% | 9,3% | 7 100€ | 6 700€ |
| Workplace accidents | % based on risk | – | – | – |
| Unemployment | 1,2% | 1,2% | 7 100€ | 6 700€ |
| Long-term care insurance | 1,525% (2) | 1,525% (2) | 4 837,50€ | 4 837,50€ |
| Total (excluding workplace accidents) | 19,325% | 19,325% | NA | NA |
(1) The obligation to join the statutory health insurance program does not apply to employees whose annual remuneration exceeds € 64,350 (€ 58,050 for members of a private insurance as of December 31, 2002). These persons are obliged to take out health insurance with a private insurer if they do not opt for voluntary insurance in the statutory health insurance program.
A slightly reduced contribution rate (employer + employee share: 14%, instead of 14.6%) applies to persons who are insured without entitlement to daily allowances (e.g. self-employed persons voluntarily affiliated to the statutory health insurance scheme).
The health insurance companies may apply an additional individual contribution (Zusatzbeitrag). The rates vary and can be found on the website of the National Association of Health Insurance Funds. In 2021, the average additional contribution amounts to 1.3%. For employees, the employer pays half of this.
(2) An additional contribution of 0.25% for long-term care insurance is paid by insured persons without children, aged 23 or older.
– In Saxony, employees contribute 2.025% and employers 1.025%.
Source : The Cleiss
Collection
The health insurance companies are responsible for collecting contributions for all branches except accident insurance. The contributions for workplace accidents are to be paid to the competent Berufsgenossenschaft according to the sector of activity of the company.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business, trust one of our local experts to ensure your company is compliant in Germany.
Our Payroll and HR services in Germany
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Germany
Good to know
Local Currency: Euro (EUR)
Minimum salary: 10,45€ gross per hour (since July 1, 2022) An increase to 12€ gross per hour is planned for October 1st., 2022.
Tax Year: 1st January – 31st December
Legal working hours: 40 hours for a 5-day week / 48 hours for a 6-day week.
About Germany
Germany is seen to be one of the world’s most welcoming countries for businesses looking to expand into their market. It is Europe’s largest economy and offers employers access to a well-educated workforce.
The country offers many benefits for businesses, but for any business looking to expand to Germany, it can be a complicated and time-consuming process to keep up with its legislations for Payroll and HR.
Are you looking to settle in Germany? Do you need help with payroll or human resources management?
Our German payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
Ready to Benefit from German HR & Payroll Experts?
German Income Tax (Einkommensteuer)
In Germany, income tax is progressive and its rate varies according to the taxable income of the taxpayer. The tax rates vary between 14% and 42%. The income bracket above 277,826€ is subject to a constant rate of 45% (2022). For a couple or a family, the rate is doubled.
German income tax scale (2022) |
||
|
Taxable income for a single employee |
Taxable income for a couple/family | Amount |
|
0 to 9 984€ |
0 to 19 969€ | 0% |
|
9 985€ to 14 926€ |
19 970€ to 29 853€ | 14% to 23,97% Progressive rate |
|
14 927€ to 58 596€ |
29 854€ to 117 193€ |
23,97% à 42% Progressive rate |
|
58 597€ to 277 825€ |
117 194€ to 555 651€ |
42% Constant rate |
|
277 825€ and more |
555 652€ and more |
45% Constant rate |
Solidarity Surcharge (Solidaritätszuschlag)
The solidarity surcharge is a tax that corresponds to 5.5% of the income tax. Since 2021, this surcharge is levied when the income tax is higher than 16 956 € for a single employee or higher than 33 912 € for a married couple.
Church Tax (Kirchensteuer)
In Germany, anyone who is declared to be a member of the Catholic or Protestant faith must pay a church tax. The rate of this tax varies between 8 and 10% of the income tax, depending on the federal state in which you live.
Social security in Germany
The German statutory social security system consists of 5 insurance branches:
- Pensions
- Sickness and maternity
- Dependency
- Accidents (for occupational injuries and diseases)
- Unemployment
Contributions
Social insurance in Germany is mostly financed by employee and employer contributions. Family benefits are financed entirely by taxes.
Employer and employee contribution rates | ||||
| Contributions | Employer | Employee | Monthly ceiling – Former Länder | Monthly ceiling – New Länder |
| Sickness-maternity | 7,3% | 7,3% (1) | 4 837,50€ | 4 837,50€ |
| Old age, disability, death | 9,3% | 9,3% | 7 100€ | 6 700€ |
| Workplace accidents | % based on risk | – | – | – |
| Unemployment | 1,2% | 1,2% | 7 100€ | 6 700€ |
| Long-term care insurance | 1,525% (2) | 1,525% (2) | 4 837,50€ | 4 837,50€ |
| Total (excluding workplace accidents) | 19,325% | 19,325% | NA | NA |
(1) The obligation to join the statutory health insurance program does not apply to employees whose annual remuneration exceeds € 64,350 (€ 58,050 for members of a private insurance as of December 31, 2002). These persons are obliged to take out health insurance with a private insurer if they do not opt for voluntary insurance in the statutory health insurance program.
A slightly reduced contribution rate (employer + employee share: 14%, instead of 14.6%) applies to persons who are insured without entitlement to daily allowances (e.g. self-employed persons voluntarily affiliated to the statutory health insurance scheme).
The health insurance companies may apply an additional individual contribution (Zusatzbeitrag). The rates vary and can be found on the website of the National Association of Health Insurance Funds. In 2021, the average additional contribution amounts to 1.3%. For employees, the employer pays half of this.
(2) An additional contribution of 0.25% for long-term care insurance is paid by insured persons without children, aged 23 or older.
– In Saxony, employees contribute 2.025% and employers 1.025%.
Source : The Cleiss
Collection
The health insurance companies are responsible for collecting contributions for all branches except accident insurance. The contributions for workplace accidents are to be paid to the competent Berufsgenossenschaft according to the sector of activity of the company.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Germany.
Our Payroll and HR services in Germany
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Euro (EUR)
Minimum salary: 10,45€ gross per hour (since July 1, 2022) An increase to 12€ gross per hour is planned for October 1st., 2022.
Tax Year: 1st January – 31st December
Legal working hours: 40 hours for a 5-day week / 48 hours for a 6-day week.
Ready to Benefit from German HR & Payroll Experts?
About Germany
Germany is seen to be one of the world’s most welcoming countries for businesses looking to expand into their market. It is Europe’s largest economy and offers employers access to a well-educated workforce.
The country offers many benefits for businesses, but for any business looking to expand to Germany, it can be a complicated and time-consuming process to keep up with its legislations for Payroll and HR.
Are you looking to settle in Germany? Do you need help with payroll or human resources management?
Our German payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
German Income Tax (Einkommensteuer)
In Germany, income tax is progressive and its rate varies according to the taxable income of the taxpayer. The tax rates vary between 14% and 42%. The income bracket above 277,826€ is subject to a constant rate of 45% (2022). For a couple or a family, the rate is doubled.
German income tax scale (2022) |
||
|
Taxable income for a single employee |
Taxable income for a couple/family | Amount |
|
0 to 9 984€ |
0 to 19 969€ | 0% |
|
9 985€ to 14 926€ |
19 970€ to 29 853€ | 14% to 23,97% Progressive rate |
|
14 927€ to 58 596€ |
29 854€ to 117 193€ |
23,97% à 42% Progressive rate |
|
58 597€ to 277 825€ |
117 194€ to 555 651€ |
42% Constant rate |
|
277 825€ and more |
555 652€ and more |
45% Constant rate |
Solidarity Surcharge (Solidaritätszuschlag)
The solidarity surcharge is a tax that corresponds to 5.5% of the income tax. Since 2021, this surcharge is levied when the income tax is higher than 16 956 € for a single employee or higher than 33 912 € for a married couple.
Church Tax (Kirchensteuer)
In Germany, anyone who is declared to be a member of the Catholic or Protestant faith must pay a church tax. The rate of this tax varies between 8 and 10% of the income tax, depending on the federal state in which you live.
Social security in Germany
The German statutory social security system consists of 5 insurance branches:
- Pensions
- Sickness and maternity
- Dependency
- Accidents (for occupational injuries and diseases)
- Unemployment
Contributions
Social insurance in Germany is mostly financed by employee and employer contributions.
Family benefits are financed entirely by taxes.
Employer and employee contribution rates | ||||
| Contributions | Employer | Employee | Monthly ceiling – Former Länder | Monthly ceiling – New Länder |
| Sickness-maternity | 7,3% | 7,3% (1) | 4 837,50€ | 4 837,50€ |
| Old age, disability, death | 9,3% | 9,3% | 7 100€ | 6 700€ |
| Workplace accidents | % based on risk | – | – | – |
| Unemployment | 1,2% | 1,2% | 7 100€ | 6 700€ |
| Long-term care insurance | 1,525% (2) | 1,525% (2) | 4 837,50€ | 4 837,50€ |
| Total (excluding workplace accidents) | 19,325% | 19,325% | NA | NA |
(1) The obligation to join the statutory health insurance program does not apply to employees whose annual remuneration exceeds € 64,350 (€ 58,050 for members of a private insurance as of December 31, 2002). These persons are obliged to take out health insurance with a private insurer if they do not opt for voluntary insurance in the statutory health insurance program.
A slightly reduced contribution rate (employer + employee share: 14%, instead of 14.6%) applies to persons who are insured without entitlement to daily allowances (e.g. self-employed persons voluntarily affiliated to the statutory health insurance scheme).
The health insurance companies may apply an additional individual contribution (Zusatzbeitrag). The rates vary and can be found on the website of the National Association of Health Insurance Funds. In 2021, the average additional contribution amounts to 1.3%. For employees, the employer pays half of this.
(2) An additional contribution of 0.25% for long-term care insurance is paid by insured persons without children, aged 23 or older.
– In Saxony, employees contribute 2.025% and employers 1.025%.
Source : The Cleiss
Collection
The health insurance companies are responsible for collecting contributions for all branches except accident insurance. The contributions for workplace accidents are to be paid to the competent Berufsgenossenschaft according to the sector of activity of the company.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Germany.
Our Payroll and HR services in Germany
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure