Country file

What it costs an employer to hire in Germany

This figure is the statutory employer cost for Germany only; it does not include an employer of record's own service fee, which providers price separately. Which countries a given provider actually covers is confirmed provider by provider, not implied by its appearing on this page.

Every contribution line shows the source used and the date checked. We prefer primary statutory sources. When a statutory page could not be reliably retrieved, we label the line as secondary and name the national payroll reference used. The figures are for 2026.

Model assumptions: Modeled five-line contribution subtotal for the general statutory system, outside Saxony, using the 2.9% average health add-on and non-mining pension insurance. Health/care assessment ceiling EUR 69,750 and pension/unemployment ceiling EUR 101,400 apply in 2026. The actual health fund may use a different add-on. Accident insurance, U1 and U2 are excluded; U1 coverage is employer-size dependent and U2 is not. This subtotal is not a complete statutory minimum or an EOR quote.

A mid salary of €60,000

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Published EOR fee on top of this employer cost

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The whole budget for one hire in Germany, the fee and this employer cost side by side: EOR fee plus employer cost in Germany.

A senior salary of €120,000

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Where the percentage changes

The formula

Each contribution uses its own documented earnings base and limits. The generic annual percentage formula is not a universal payroll rule. Brazil's worked assumptions include a thirteenth salary and a separate one-third vacation premium, with ordinary contributions and FGTS on covered remuneration. The total-gross option includes both salary additions. The Philippines model calculates twelve monthly capped contributions and fixed EC only for its supported constant high-pay scenario. Lower or irregular pay requires monthly payroll; no unsupported estimate is shown.

Each ceiling above applies only to its own line, which is why the employer percentage for Germany is not the same at both salaries. Employer contribution ceilings, country by country lists where every ceiling on this site sits.

Time off, extra pay and leaving

The Federal Leave Act sets 24 working days on a six-day week, which is 20 days on a five-day week. Public holidays are set by each state; 9 apply nationwide and several states have more.

No statutory 13th month. Christmas and holiday pay are common by collective agreement, not by law.

No general statutory severance. Half a month's salary per year of service applies only where the employer offers it under section 1a of the Dismissal Protection Act in an operational dismissal. Collective redundancies are normally handled by a negotiated social plan instead.

What the percentage hides

The statutory health and care contribution assessment ceiling is EUR 69,750 in 2026; EUR 77,400 is the separate health insurance membership threshold. Pension and unemployment contributions use the EUR 101,400 assessment ceiling.

Statutory accident insurance is fully employer-paid but has no national rate. It is set per trade association and risk class, so it is excluded from the totals here.

U1 reimbursement levies cover qualifying employers normally with no more than 30 employees; U2 applies irrespective of employer size. Fund-specific rates for both remain outside the five-line subtotal. Source: TK coverage explanation (read October 14, 2026).

Items requiring payroll or quote confirmation, not established by any figure above: a single national employer accident-insurance rate; U1 and U2 levy rates.

One recorded change to the data on this page is listed with the old value, the date and the reason in what changed.

Using an employer of record in Germany

The modeled total includes salary payments and employer contributions. An employer of record adds its own fee on top, and that fee is a flat monthly amount rather than a percentage, so it weighs far more on a junior salary than a senior one. The published prices are here, and the calculator will add one to the figures on this page.