Global Employment Solutions & PEO in Germany

Omnipresent makes it fast and easy to employ remote talent in Germany. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.


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What You Need to Know About Employing in Germany

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

Select any of the categories below to learn more, and even review our employee cost salary calculator in Germany.

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How it works
Employer Costs
Employee Income Taxes
Employee Social Contributions
Working Hours
Holidays & Vacation
Sick Leave Entitlement
Parental Leave
Annual Leave Entitlement
Severance Pay Entitlement
Employment Cost Calculator

How does Omnipresent Global Employment Solutions work in Germany?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Germany. Traditional methods of establishing global employment and subsidiaries in Germany typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Germany in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

  • Your company conducts the hiring and candidate selection process in Germany.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Germany.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Germany.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Employer Costs in Germany

Employer costs include Pension Insurance, Health Insurance, and Care Insurance. Use the OmniCalculator to estimate costs, or contact us for further information.


Employee Income Taxes in Germany

Income taxes

Income tax rates are levied on a progressive scale, with rates ranging from zero to 45%.


Employee Social Contributions in Germany

Employee Contributions Retirement Pension Insurance (Rentenversicherung, abbreviated as RV)

9.3% of the employee's pensionable salary Effective for 2024, the standard pension insurance contribution ceiling in states of former West Germany is €7,550 per month or €90,600 per year and the standard pension insurance contribution ceiling in states of former East Germany is €7,450 per month or €89,400 per year.

Employees who are working in mini-jobs are subject to a different contribution rate from the standard. Health Insurance (Krankenversicherung, abbreviated as KV):

7.3% of the employee's salary

Effective for 2024, the health insurance contribution ceiling is €5,175 per month or €62,100 per year. Long-Term Care Insurance (Pflegeversicherung, abbreviated as PV)


Employees who do not have children and are more than 23 years of age and born after 1939 are assessed a supplemental long-term care insurance rate of 0.6%

Effective for 2024, the long-term care insurance contribution ceiling is €5,175 per month or €62,100 per year. Unemployment Insurance (Arbeitslosenversicherung, abbreviated as AV)


Effective for 2024, the unemployment insurance contribution ceiling in states of former West Germany is €7,550 per month or €90,600 per year and the unemployment insurance contribution ceiling in states of former East Germany is €7,450 per month or €89,400 per year.


Working Hours in Germany

Maximum working hours are 48 hrs a week in line with the EU Working Hours Directive. This can’t be waived or extended permanently and set out in the employment contract but can be extended if the Collective Bargaining Agreement allows for this. This would be agreed in a side letter on a case by case basis.


Holidays & Vacation in Germany

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Monday, Jan 01, 2024 - New Year's Day (Neujahr)
  • Friday, Mar 29, 2024 - Good Friday (Karfreitag)
  • Monday, Apr 01, 2024 - Easter Monday (Ostermontag)
  • Wednesday, May 01, 2024 - Labour Day (Maifeiertag)
  • Thursday, May 09, 2024 - Ascension Day (Christi Himmelfahrt)
  • Monday, May 20, 2024 - Whit Monday (Pfingstmontag)
  • Thursday, Oct 03, 2024 - National Holiday (Tag der Deutschen Einheit)
  • Tuesday, Dec 24, 2024 - Christmas Eve (Heiliger Abend)
  • Wednesday, Dec 25, 2024 - Christmas Day (1. Weihnachtstag)
  • Thursday, Dec 26, 2024 - Boxing Day (2. Weihnachtstag)
  • Tuesday, Dec 31, 2024 - New Year's Eve (Silvester)

Sick Leave Entitlement in Germany

The law provides up to 6 weeks of sick leave and sick pay per illness. There is no overall maximum.

Employees must notify their employer immediately if they are sick. If they are off work for more than 3 days, they need to provide a medical certificate.

Parental Leave in Germany

Maternity leave is a minimum of 6 weeks before and at least 8 weeks after birth on full pay. In addition there is parental leave of up to 24 months (taken by one parent) or 28 weeks (if the parents split it). There is no separate paternity leave.

Annual Leave Entitlement in Germany

In Germany the minimum annual leave is 20 working days (i.e. 4 weeks) excluding public holidays, for office workers.

Severance Pay Entitlement in Germany

There is no severance entitlement in Germany unless a court decides that a termination was not justified and holds that continued employment (reinstatement) is not reasonable.

Severance is usually offered to reach mutual terminations to avoid long court proceedings.

Termination in Germany

Employees can be terminated without cause during the first 6 months. After that a cause is required and must be "socially justified". This is extremely hard to prove so mutual settlement agreements are common.

Global Employment Cost Calculator in Germany

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GBP 695.47
Health Insurance
GBP 695.47
Average Monthly Employer Cost *


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Grow your global team. 
Employ the best talent, anywhere in the world

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Germany are strict with penalties for non-compliance. Let our team take care of the global payroll solutions, benefits, and administrative tasks, and all other aspects of employment, all while ensuring adherence to global regulatory compliance. That way, you can dedicate your efforts to business growth, knowing that we're here to support you every step of the way.

Want to onboard an international employee today? Get started.

Omnipresent makes it easy to hire, pay, and support your international team with our top-notch services including our global EOR & PEO services. Book a call with us to start building your global team today. Book a call with us to start building your global team today.

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