Germany Payroll Guide

Q: How does payroll work in Germany?

In Germany, employees are generally salaried and paid on a monthly basis. Each employee must be registered with their chosen health insurance, which the employer will need to maintain and process via the payroll. This creates quite a large volume of payments on a monthly basis, however PeoplePay Global will handle this on your behalf.

Q: What are the regulations around leave?

When an employee is sick, they will generally be entitled to 100% pay. Employers receive 80% of that amount back via the health insurance system, providing they do not have over 30 employees. An employee must provide a doctor’s note after three days of sickness, to ensure they remain compensated. For illnesses lasting longer than six weeks, the sick pay is reduced and must continue to provide doctor’s notes until they are able to return to work.

Q: What about dismissing an employee?

Employment rights are very strict in Germany. Therefore before taking any action, we suggest speaking to one of our Employment Law Advisors. For example, notice of termination is usually delivered in person to ensure receipt, otherwise this can be used against the employer. We are able to handle all aspects to ensure compliance throughout the process.

Hire employees in Germany

Currency

Euro (EUR)

Population

83,149,300

Capital

Berlin

Official language(s)

German

Date format

dd/mm/yyyy

Fiscal year

1 January - 31 December

Why use PeoplePay?

Guaranteed Compliance

Robust, compliant payroll and hiring supported by a dedicated Account Manager.

Local Expertise

Avoid international payroll and hiring pitfalls including language barriers, regulations and employment laws.

Lower Costs

Reduced administration, no need for an in-country team, and consolidated, outsourced payroll.

Germany Payroll

Get peace of mind with a streamlined, fully-managed payroll solution for 1+ employees.

Germany HR

Helping you hire compliantly, steering you through the local HR laws and regulations.

Germany Payments

Consolidated, one-wire transfers to cover your entire global workforce – at competitive rates.

Germany Payroll & HR Solutions

PeoplePay Global are here to assist with all your Payroll and HR requirements in Germany

In-Country Employment Contracts

Creation of locally-compliant German employment agreements, ensuring you and your employees are protected in-country. Our experts in Germany will create your bespoke agreement.

Payroll Processing

With global knowledge and local proficiency, we provide a fully-managed payroll solution that handles all the complex tasks, leaving you to focus on your business.

Tax and Labor Law

Germany’s complex legislation can be daunting. Our in-country specialists are an extended member of your team, steering you safely through tax and labor law.

Regulatory Compliance

Our in-country professionals provide a wealth of experience and expertise in Payroll & HR compliance, ensuring your venture complies with ever-changing legislation.

Start-Up Implementation

We’ll ensure you’re operational promptly in accordance with local law, advising on the best route for your business, whether it’s via a legal entity or foreign registration.

Declarations and Audits

Our local specialists will manage and submit annual declarations on your behalf, guaranteeing accurate and prompt reporting to the authorities and also providing support for audits.

To discuss your individual needs get in touch today

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Frequently Asked Questions