Germany Payroll Guide

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.

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.

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.