Payroll and HR in Germany

Local Information

Local Time (LIVE):5:57 AM
Local Currency:$1 = €0.89
Business Language(s):German, English
Tax Year Dates:1st January – 31st December

 

If you’re thinking of expanding your business to Germany, you’re in good company – 22,000 foreign enterprises have established businesses there! As Europe’s largest national economy and one of Europe’s most cost-effective production locations, Germany presents endless opportunities for growth.

However, in order to ensure your business is remaining payroll and HR compliant in Germany, you need an international specialist by your side.

Working & Living in Germany

For information on what it’s like to work and live in Germany, check out our Living & Working in Germany Guide.

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Details correct at time of publication. You should not rely on these details without first seeking professional international advice.

Employer Must-Dos

In Germany, the following reports must be submitted to strict deadlines:

  • Social Security Statements (Beitragsnachweise)
  • Withholding Tax Statements (Lohnsteueranmeldung)
  • Accident Insurance (Berufsgenossenschaftsmeldung)

Payroll in Germany

Tax Considerations

In Germany, the tax system can be quite overwhelming when it comes to maintaining compliance. Income tax varies between employees depending on personal circumstances and the social security system is structured and paid in equal parts by employers. In addition to this, there are other taxes businesses are subject to, such as corporate, trade and turnover tax.

HR in Germany

What are the regular working hours in Germany?

In Germany there is a lot of flexibility when it comes to working hours. Employees are allowed to work 8 hours a day, with Saturday considered to be a usual working day (48 hours a week). Overtime must be compensated with time off. On Sundays most businesses are closed with the exception of businesses such as petrol stations.

In contrast to other EU countries, Germany has very generous national holidays which will need to be taken into consideration.

Termination

An employee who is employed for more than 6 months can be terminated only for a reason permitted by the German Termination Protection Act.

Want more information?

If you want to know more about international payroll and the implications and considerations that come along with it, download our free guide to international payroll today.

Download Our Guide

FMP’s German Payroll and HR Solutions

At FMP Global, our German Payroll and HR services are designed for businesses looking for a legally compliant payroll and HR team who know the ins and outs of German legislation. Whether in Berlin, Munich or Hamburg, we can help tailor a solution suited to your business’s needs and requirements. Our cost-effective solutions include but are not restricted to:

  • Payroll Processing
  • Regulatory Compliance
  • Benefits Administration
  • Handling of payments (salaries & social charges)
  • Pension Administration
  • Payroll Audit Assistance
  • WebCentre Services
  • Legal Entity Services
  • Employment Contracts
  • Business Visa Applications
  • Work Permit Applications
  • Legal Advice/Services
  • Translation Services
  • Assistance with start-up (in link with lawyers)
  • Monthly Master Report
  • Employee Registration with German Health Insurance
  • Tax advice, Bookkeeping & Accounting

Stay Compliant - Payroll and HR Services in Germany

Our specialist in-country teams will help ensure you meet the mandatory requirements of payroll and HR processes in Germany. So, let us help guide the way.

Start your German Expansion Today