Germany Payroll Information – Deel Global Payroll

Updated on: 2025/08/04 14:03 (UTC)

Overview

The Federal Republic of Germany consists of 16 federal states, also known as Länder. The federated states are Baden-Württemberg, Bavaria (Bayern), Berlin, Brandenberg, Bremen, Hamburg, Hesse (Hessen), Lower Saxony (Niedersachsen), Mecklenburg-Vorpommern, North Rhine-Westphalia (Nordrhein-Westfalen), Rhineland-Palatinate (Rheinland-Pfalz), Saarland, Saxony (Sachsen), Saxony-Anhalt (Sachsen-Anhalt), Schleswig-Holstein, and Thuringia (Thüringen). Berlin, Bremen, and Hamburg often are referred to as city-states (Stadtstaaten).

With the exception of Berlin, the states of the former country of East Germany (Brandenburg, Mecklenburg-Vorpommern, Saxony, Saxony-Anhalt, and Thuringia) have been known as the New States (die neuen Bundesländer) following their reunification with the western states in 1990. The other states, which are those of the former country of West Germany, have been known as the Old States (die alten Bundesländer) following the reunification. Berlin, despite having been partially in West Germany and partially in East Germany, usually is considered to be part of the Old States. The countries that border Germany are Denmark to the north, the Czech Republic and Poland to the east, Austria and Switzerland to the south, and Belgium, France, Luxembourg, and the Netherlands to the west. In addition to its mainland on Europe, Germany includes numerous islands, the largest and most populous of which are Rügen and Usedom, which at their closest points to mainland Germany are located fewer than 5 kilometers from the northeast coastline of the mainland. In Standard German, the country of Germany’s name is Deutschland.

The primary written and spoken language used in Germany is the Standard German language, which is Germany’s official language and often is simply referred to as German. While Standard German is used in formal speech and is commonly used in media, many additional varieties of German with varying levels of intelligibility with Standard German also are spoken throughout the country. The English language is commonly used in Germany. Some states of Germany have specified official minority languages, whether under the European Charter for Regional or Minority Languages or separately. The languages recognized in at least one state under the charter are Danish, North Frisian, Sater Frisian, Low German, Romani, Lower Sorbian, and Upper Sorbian. The writing system for the Standard German language is an alphabetic writing system with Latin script that includes the 26 letters of the English alphabet plus four additional letters: ä, ö, ü, and ß. The first, second, and third additional letters are the combination of a standard English letter and an umlaut. The fourth additional letter is Eszett, which approximates a lengthened “s” sound and in some instances is used in place of a duplicated letter s. The directionality that is used for written Standard German text, as is used for English writing, is progression along horizontal lines from left to right, with successive horizontal lines read from top to bottom.

Germany’s currency is the euro.

Employers are responsible for withholding income and social taxes from employee wages and remitting those taxes to the federal government. Germany has several other payroll-related taxes, such as a benefits tax, a solidarity surcharge and a church tax. Income and social taxes typically constitute the majority of taxes owed to the federal government; therefore, most taxes are collected at source by an employer.

Germany has a country-wide minimum wage, and many trade organizations have negotiated their own minimum wages over the years. Compensation and worker protection requirements generally follow standards set in those contracts.

Foreign employees working in Germany are liable for taxes on wages earned in Germany. Depending on their place of residence and duration of stay in Germany some foreign employees may be required to pay income taxes beyond their wage tax withheld at source by their employer.

German residents working in the United States are covered by U.S. tax law with possible treaty and work status exclusions applying. Work within the U.S. states and territories is covered by various labor laws.

News articles regarding payroll in Germany are available in

CURRENCY DETAILS

The standard currency of Germany is the euro (€), which Germany uses because it is part of the euro area, also known as the eurozone, which is a group of countries that adopted the euro as their currency. The internationally recognized three-letter currency code for the euro is EUR, which also is one of the currency’s two commonly used currency symbols. The English plural form of euro officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is euros. In German, the standard plural form of euro also is the same as its singular form.

When an amount of euro is written using the currency symbol € in accordance with the European Commission’s standard placement treatment of the symbol, which is the placement treatment used for the English language, the symbol precedes the numerical value with no space between the numerical value and symbol. When an amount of euro is written in Standard German as used in Germany using the currency symbol €, the symbol follows the numerical value with a space between the numerical value and symbol.

When an amount of euro is written using the currency symbol EUR, the symbol precedes or follows the numerical value with a space or no space between the numerical value and symbol.

One hundredth ( ¹ ⁄ ₁₀₀ ) of a euro is referred to in English as a cent and the English plural form of cent officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is cents. In German, as officially recognized by the European Commission, one hundredth of a euro also is referred to as a cent and its standard plural form also is the same as its singular form.

When amounts of euro are written in Standard German, the comma that in English separates the thousands place from the hundreds place instead is rendered as a dot (.), and the dot that in English separates the ones place from the tenths place instead is rendered as a comma.

An exception to Germany’s use of the euro as its currency is that in the municipality of Büsingen am Hochrhein, which is an enclave of Germany entirely bordered by Switzerland and is the only part of Germany entirely surrounded by another country, the Swiss franc is the predominant currency in use, although the euro is commonly accepted as currency in the municipality.

Digital Currencies: Germany considers digital currencies to be comparable to the use of conventional payment instruments in Germany, as long as they serve no purpose other than that of a “pure payment instrument” rather than a speculative tool with which to trade and profit. German employers seeking to pay employees in digital currency would need to obtain digital currency, then transfer it to the employee, and then the employee can choose whether or not to exchange that amount into fiat currencies.

Employers paying employees in digital currency are generally required to take into account two reference prices under Germany’s tax laws. If digital currency procured for the purpose of paying employees has a higher valuation at the time of payment than procurement, the employer would need to report any gain and pay income taxes in euros on the value of the amount of digital currency paid or transferred to the employee at the time of the payment. In Germany, the employee would generally have to pay taxes on gains if the digital currency is held longer than one year after the payment.

The European Banking Authority does not consider digital currencies to be legal currency. However, under a 2015 ruling by the European Court of Justice, bitcoin generally is considered a currency rather than a property for tax purposes in the European Union. Under the ruling, digital currency transactions are exempt from value-added tax (VAT) under a provision regarding transactions pertaining to currency, bank notes, and coins that are used as legal tender.

TAXES

The federal government enacts laws relating to income taxation, although states retain some authority over other forms of taxation. Employee income is used to establish a tax liability threshold for an employee’s income taxes.

In addition, taxes on employee wages and related employer contributions are applied to cover the country’s multifaceted social insurance scheme, which includes unemployment insurance, health-care coverage and old age systems (both pension and care during old age). Employees and employers both contribute to social security.

Employers additionally are responsible for accident insurance, sick pay, maternity leave and insolvency coverage (which requires payment of the employee’s outstanding wages in the event of bankruptcy).

A payroll-related benefits tax may apply for some services provided to employees.

Employers also are responsible for withholding a mandatory solidarity tax (Solidaritätszuschlag), which for most individuals is a tax of 5.5% assessed on total income tax obligations rather than total taxable income. The surcharge is specifically designed to address economic development in the former states of East Germany.

A church tax also applies to employees of organized religions.

The tax year is the calendar year, Jan. 1 to Dec. 31.

Coronavirus (Covid-19) Guidance: Agreements between Germany and Austria, Germany and Belgium, Germany and France, Germany and Luxembourg, Germany and the Netherlands, Germany and Poland, and Germany and Switzerland, all effective starting March 11, 2020, allow days worked at home by cross-border commuters who live in one country and work in the other, but must work at home because of the new coronavirus, to count as days worked in the normal work country. A provision was added to the Switzerland agreement April 27, 2021, and to the Austria agreement June 18, 2021, that employees working from home only because of Covid-19 restrictions do not create a permanent establishment for their employer in their country of residence.

The agreements with Belgium, France, Luxembourg, the Netherlands, and Switzerland are to be in effect until at least March 31, 2022. All agreements automatically extend at the end of each month until terminated, and Poland’s agreement, once terminated, is to be in effect until the end of the month following termination.

Employers may apply to postpone the filing of monthly or quarterly income tax withholding reports (Lohnsteuer-Anmeldungen) by up to two months if they are unable to file on time.

Employers directly affected by the new coronavirus may apply to postpone tax payments that have original deadlines up to Jan. 31, 2022, to June 30, 2022, at the latest. This does not apply to income tax withholding deposits, except for benefits for which employers have the option to pay income tax at flat rates on behalf of employees.

According to European Commission guidance, employees who normally work in one European Union member country and live in another are still considered to be insured by the social insurance system of the normal work country while working at home. Germany and Luxembourg also have their own agreement extending social security coverage in a worker’s normal work country despite working at home in the other country through June 30, 2022.

Income Taxes

Employers are responsible for withholding taxes from employees and paying the taxes to federal government. The pay-as-you-go income taxes are known as wage taxes (Lohnsteuern) and are administered by the Federal Ministry of Finance (Bundesministerium der Finanzen, abbreviated as BMF) and payable to the local state tax office.

Coverage: Employers employing German citizens or residents in Germany are covered under federal tax laws. A resident employer is defined by having a residence, habitual abode, place of management, headquarters, permanent establishment or permanent representative in Germany.

Employees: Resident taxpayers or those with a domicile or habitual abode in Germany are subject to unlimited tax liability on all worldwide income. A habitual abode is defined by the German tax code (Abgabenordnung, abbreviated as AO) as a place where an individual has resided for not less than six months that indicates that stay is not merely temporary.

Rates and Thresholds: Income tax rates are levied on a progressive scale, with rates ranging from zero to 45%. Germany has a basic allowance (Grundfreibetrag) of income upon which income tax is not assessed, and the country’s progressive personal income tax bracket with a rate of zero is for income up to the basic allowance. The basic allowance is subject to annual adjustment.

Effective for 2022, individual annual incomes up to the basic allowance of €9,984 for those with a family status of single are exempt from income taxation. Effective for 2021, individual annual incomes up to the basic allowance of €9,744 for those with a family status of single were exempt from income taxation. Effective for 2020, individual annual incomes up to the basic allowance of €9,408 for those with a family status of single were exempt from income taxation.

A range of income in excess of the basic allowance, known as the progression zone (Progressionszone), has income tax rates that range from 14% to 42%, with the applicable income tax rate rising as income increases within the range of income. Amounts of income tax owed on income within the progression zone and for income outside the progression zone are determined through using formulas prescribed by Germany’s Income Tax Act (Einkommensteuergesetz, abbreviated as EStG), and the sets of formulas for 2021 and 2022 and sets of formulas for 2019 and 2020 are available from the government. The progression zone is divided into two parts, the first progression zone (ersten Progressionszone) and the second progression zone (zweiten Progressionszone) for income in excess of income covered by the first progression zone, and the formulas for calculating income tax differ between the first and second progression zones. In general, the differences in the formulas cause the relative rate of income tax to rise to a greater degree within the first progression zone as income increases than is applicable to the second progression zone as income increases. The maximum amounts of income applicable to the first and second progression zones are subject to annual adjustment, with the maximum amount for the second progression zone, which is congruent to the maximum amount for the progression zone as a whole, detailed in the below income tax brackets.

Effective for 2022, the maximum annual amount of income for the first progression zone applicable to those with a family status of single is €14,926. Effective for 2021, the maximum annual amount of income for the first progression zone applicable to those with a family status of single was €14,753. Effective for 2020, the maximum annual amount of income for the first progression zone applicable to those with a family status of single was €14,532.

The income tax brackets for income in excess of income covered by the progression zone are mechanically differentiated from the progression zone in that they operate under the international standard principle that the full range of income for an income tax bracket is subject to a singular income tax rate that does not change as income increases within the range. Each of the two tax brackets for income in excess of income covered by the progression zone, one with a rate of 42% and one with a rate of 45%, is known in Germany as a proportional zone (Proportionalzone) because the bracket rate does not change as income increases within the range of income applicable to the bracket.

Each bracket’s minimum and maximum amounts of income for those with the family status of married are double the respective minimum and maximum amounts of income for those with the family status of single.

Effective for 2022, Germany’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:

Range of Annual Income for Family Status of Single (Euro)	Range of Annual Income for Family Status of Married (Euro)	Income Tax Rate
Up to €9,984	Up to €19,968	Zero
More than €9,984 and up to €58,596	More than €19,968 and up to €117,192	14% for the minimum amount, with the applicable income tax rate rising progressively to 42% as income increases within the range
More than €58,596 and up to €277,825	More than €117,192 and up to €555,650	42%
More than €277,825	More than €555,650	45%

Effective for 2021, Germany’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:

Range of Annual Income for Family Status of Single (Euro)	Range of Annual Income for Family Status of Married (Euro)	Income Tax Rate
Up to €9,744	Up to €19,488	Zero
More than €9,744 and up to €57,918	More than €19,488 and up to €115,836	14% for the minimum amount, with the applicable income tax rate rising progressively to 42% as income increases within the range
More than €57,918 and up to €274,612	More than €115,836 and up to €549,224	42%
More than €274,612	More than €549,224	45%

Effective starting Jan. 1, 2021, employees are also assessed a solidarity surcharge (Solidaritätszuschlag) of 5.5% on their total income tax obligation, rather than on their total taxable income, if they owe more than €16,956 in income tax for a year and are single, or owe more than €33,912 in income tax for a year and are married employees filing jointly. A mitigation zone (Milderungszone) gradually increases the tax rate to the full 5.5% as income increases, with the 5.5% rate only applying to single employees who owe more than €31,528 in income tax for a year or married employees filing jointly who owe more than €63,056 in income tax for a year. Effective until Dec. 31, 2020, the solidarity surcharge was assessed on single employees who owed more than €972 in income tax for a year, or married employees filing jointly who owed more than €1,944 in income tax for a year.

A payroll and income tax calculator is available on the Federal Ministry of Finance’s website.

Registration: Employers are required to register with their local tax office if they meet any of the following criteria:

were established with the intention of making a profit;
represent a share in generic economic transactions;
were established separate from self-employed or freelance work; or
were established separate from the agriculture and forestry industry.

The registration period for the payroll tax is generally a calendar month. The tax office will provide a tax number, which will then be used to file information regarding the employer’s fiscal situation and turnover/profit expectations.

Taxable Amounts: Generally, all salaries, wages and other income from employment are subject to income taxation. Income from employment does not include the reimbursement of specific expenditures incurred on behalf of the employer (Auslagenersatz) or advances with respect to such expenses. Taxes are calculated based on the gross monthly salary minus work-related expenses, tax allowances and applicable extraordinary financial burdens.

Employers may, but are not legally required to, pay employees surcharges for work on Sundays, holidays, and at night. These surcharges are tax-free up to a limit, determined as a percentage of the employee’s basic wage (Grundlohn). The limits are:

25% of an employee’s basic wage for night work. If the night work begins before midnight, the tax-free surcharge limit is 40% for the period between midnight and 4 am;
50% of an employee’s basic wage for Sunday work;
125% of an employee’s basic wage for work on holidays, as well as work on Dec. 31, which is not a legal holiday in any state, after 2 pm; and
150% of an employee’s basic wage for work on Dec. 24, which is not a legal holiday in any state, after 2 pm, as well as work on Dec. 25 and 26 and May 1.

For the purpose of determining the employee’s basic wage, the employee’s regular wages for a pay period are to be converted into an hourly wage that may not exceed €50.

Car insurance provided by employers to their employees using their own vehicles for business trips is not a taxable benefit for employees.

Service-connected moving expenses, travel allowances, additional expenses incurred as a result of maintaining two households, and the employer’s share of mandatory social security contributions are exempt from taxation.

Certain kinds of extraordinary payments, including severance payments, are subject to income tax, but are taxed using a procedure known as the rule of fifths (Fünftelregelung). One-fifth of the payment is added to the employee’s annual income, and the income tax liability on that amount is calculated. The income tax liability on the employee’s annual income without the payment is then calculated. The difference between the two calculated income tax liabilities is then multiplied by five to determine the amount of tax owed on the extraordinary payment.

Withholding Methods: Employers assess each employee’s wage-tax withholding based on each employee’s wage tax card or file, which an employee receives from their local tax office. Wage-tax cards are now being replaced by electronic records (operated by ElsterOnline’s database, ELStAM), and list each employee’s exemptions and allowances. Employers are responsible for withholding employee payroll taxes each month and remitting them to their local tax office, which collects on behalf of the federal government. Individuals are not required to file under this system unless they are seeking a refund.

Returns and Remittance: Payment and reporting obligations vary according to the specifications of each employer, including whether they are German or foreign and the residency status of their employees. Monthly wage tax filings are due on the 10th day of following month.

Germany mandates the use of an online financial services tool—called ElsterOnline—to process employee and employer tax filings. Employers access the website and download the requisite program software. Employers are also required to submit their annual income tax forms through ElsterOnline no later than Feb. 28 of the following year.

Depending on the amount of wages taxed, reports and payments can be made monthly, quarterly or annually. Generally businesses appear responsible for monthly filings.

Employers must register employees with the social insurance system—the premiums for which are borne jointly by both the employer and employee. Employees who have been given a tax card (Lohnsteuerkarte) by the Federal Central Tax Office (Bundeszentralamt für Steuern, abbreviated as BZSt) must give this card to their employer as possible.

Tax offices are located in every state. An employer is responsible for reporting to their nearest tax office employee-related withholdings. Though local branches of the federal tax office are technically responsible for tax collection, revenues are shared by all levels of government. Tax offices can be located through the Federal Central Tax Office’s search tool.

Germans are responsible for completing their tax filings online. Resident employees working for a foreign employer must report their wages to the tax office in their state after the end of the calendar year. The local tax office will subsequently establish quarterly advance payments, if necessary.

Employee Share Plans: Stock plans offered to employees are taxable upon their exercise. Employers must withhold income tax based on the difference in price between the amount the stock options sold to employees and the value of the stocks at exercise. Share plan amounts are subject to the same tax calculations as normal salary payments. The amounts also are subject to social tax withholding. Employers must remit the taxes in the same manner they would remit income tax withheld from employee salaries.

Recordkeeping: Recordkeeping is maintained online, through the ElsterOnline webpage.

Generally, taxpayers are required to maintain records related to expenses for at least six years following the calendar year in which they reported income exceeding €500,000.

Penalties: Penalties will be assessed on taxpayers for failing to submit a tax return or fails to meet their designated tax filing deadline. Penalties may not exceed 10% of the tax assessed or €50,000. Additionally, the severity of penalties will be evaluated based on the economic impact of the noncompliance or the duration of any delay.

Social Taxes

Germany has a multifaceted system of social insurance (Sozialversicherung) that is financed jointly by employer contributions and employee contributions withheld at source by the employer. Some social tax types are assessed only on employers.

Many components of Germany’s social tax system are administered by the German Pension Insurance agency (Deutsche Rentenversicherung).

Coverage: Employers are responsible for withholding taxes from employees and paying the taxes to federal government.

Resident taxpayers, or those with a domicile or habitual abode in Germany, are subject to unlimited tax liability on all worldwide income. A habitual abode is defined by the German Tax Code as a place where an individual has resided for not less than six months that indicates that stay is not merely temporary.

Rates and Thresholds: The maximum income upon which social security or wage taxes can be levied on a taxpayer somewhat varies among federal states. With the exception of Berlin, states of Germany that had been part of the former country of East Germany (Brandenburg, Mecklenburg-Vorpommern, Saxony, Saxony-Anhalt, and Thuringia) have, for some types of social taxes, a lower maximum taxable amount of wages paid to employees than their western counterparts.

The maximum taxable amount of wages paid to employees upon which employer and employee contributions for a type of social insurance may be assessed also is known in Germany as a contribution ceiling or contribution assessment limit (Beitragsbemessungsgrenze, abbreviated as BBG).

Retirement Pension Insurance (Rentenversicherung, abbreviated as RV): Effective since Jan. 1, 2018, the standard pension insurance contribution rate for employees is 9.3% and the standard pension insurance contribution rate for employers is 9.3%, for a standard total pension insurance contribution rate of 18.6%. Effective from Jan. 1, 2015, to Dec. 31, 2017, the standard pension insurance contribution rate for employees was 9.35% and the standard pension insurance contribution rate for employers was 9.35%, for a standard total pension insurance contribution rate of 18.7%.

Employee and employer standard pension insurance contribution rates are subject to a pension insurance contribution ceiling, which is a maximum amount of wages paid to an employee upon which the employer and employee standard pension insurance contribution rates may be assessed. For the standard pension insurance contribution rates, a different contribution ceiling is applicable for states of the former country of West Germany, including all of Berlin, than for states of the former country of East Germany, excluding all of Berlin.

Effective for 2022, the standard pension insurance contribution ceiling in states of former West Germany is €7,050 per month or €84,600 per year and the standard pension insurance contribution ceiling in states of former East Germany is €6,750 per month or €81,000 per year. Effective for 2021, the standard pension insurance contribution ceiling in states of former West Germany was €7,100 per month or €85,200 per year and the standard pension insurance contribution ceiling in states of former East Germany was €6,700 per month or €80,400 per year.

Employees who are working in mini-jobs, which are those in which employees are paid no more than €450 per month, are subject to a different contribution rate from the standard, and their employer is assessed a contribution rate of 15%. When combining the employer and employee contribution rates for mini-job employment, the total contribution rate is the same as the standard total contribution rate, so the employee rate is the standard total contribution rate, minus 15 percentage points. Employees working in mini-jobs may exempt themselves from being assessed a pension insurance contribution by submitting a written request to their employer, although the employer still would be required to pay their assessment of 15% on wages.

Effective since Jan. 1, 2018, the mini-job pension insurance contribution rate for employees is 3.6%.

The pension insurance contribution rate for employees who are working in midi-jobs, which are those in which employees, effective since July 1, 2019, are paid more than €450 per month but less than €1,300 per month, is based on the employee’s level of income in the midi-job income range, with a direct relationship between employee contribution rate and income level. Increases in the employee contribution rate are matched with equivalent decreases in the employer contribution rate as income increases within the midi-job income range, and the total contribution rate must equal the standard total pension insurance contribution rate. The midi-job income range also is referred to as a sliding zone (Gleitzone). The German Pension Insurance agency’s sliding zone calculator (Gleitzonenrechner) allows for determination of the employee share (Arbeitnehmeranteil) and employer share (Arbeitgeberanteil) of pension insurance contributions for midi-job employment based on a month’s income. For pension insurance, the minimum midi-job employee contribution rate is the mini-job employee contribution rate and the maximum midi-job employee contribution rate is the standard employee contribution rate.

Effective since Jan. 1, 2018, midi-job pension insurance contribution rates for employees range from 3.6% to 9.3%.

Separate pension insurance contribution rates and contribution ceilings apply for employees and employers in the mining industry and are available on a rates webpage of the German Pension Insurance agency.

Health Insurance (Krankenversicherung, abbreviated as KV): The standard health insurance contribution rate for employees is 7.3% and the standard health insurance contribution rate for employers is 7.3%, for a standard total health insurance contribution rate of 14.6%.

The standard total health insurance contribution rate of 14.6% includes a sick-pay funding assessment of 0.6%. Employees generally are eligible for sick pay, but for those whom employers are not required to pay sick pay, the sick-pay funding assessment of 0.6% may be able to be subtracted from the total rate applicable to employment income paid to them in some circumstances, for a reduced total health insurance contribution rate of 14%.

As numerous insurance companies provide services through Germany’s system of statutory health insurance (gesetzliche Krankenversicherung, abbreviated as GKV), an additional contribution (Zusatzbeitrag, abbreviated as ZB) for health insurance may be assessed. The additional contribution for health insurance may be assessed on employees but not on employers. Additional contribution rates for health insurance vary among insurance companies, with the rates assessed by statutory health insurance providers available on a rates webpage of the Association of Statutory Health Insurance Funds (GKV-Spitzenverband).

Employee and employer health insurance contribution rates are subject to a health insurance contribution ceiling, which is a maximum amount of wages paid to an employee upon which the employer and employee health insurance contribution rates may be assessed.

Effective for 2022, unchanged from 2021, the health insurance contribution ceiling is €4,837.50 per month or €58,050 per year.

Employees who during a year are paid at least the annual earnings limit (Jahresarbeitsentgeltgrenze, abbreviated as JAEG) for health insurance are, starting with the next year, no longer required to be covered by statutory health insurance and may choose to either remain covered under statutory health insurance or instead be covered by private health insurance (private Krankenversicherung, abbreviated as PKV).

Effective for 2022, unchanged from 2021, the health insurance annual earnings limit is €5,362.50 per month or €64,350 per year.

Employees who are working in mini-jobs are not subject to a health insurance contribution rate and their employer is assessed a contribution rate of 13%.

Health insurance contributions on employers and employees based on wages paid to employees who are working in midi-jobs can be determined using the German Pension Insurance agency’s sliding zone calculator.

Contributions for trainees with salaries of €325 per month or less are paid in full by employers. Student workers only contribute a flat-rate of €65 per month.

Miners are assessed an additional health insurance contribution rate of 1.3%.

Long-Term Care Insurance (Pflegeversicherung, abbreviated as PV): Effective Jan. 1, 2019, the standard long-term care insurance contribution rate for employees is 1.525% and the standard long-term care insurance contribution rate for employers is 1.525%, for a standard total long-term care insurance contribution rate of 3.05%.

Effective since Jan. 1, 2022, 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 0.35%. Effective until Dec. 31, 2021, this supplemental rate was 0.25%.

The state of Saxony has the same total long-term care insurance contribution rate, but instead of the contribution being evenly divided between employer and employee, 0.5% is added to the employee contribution and subtracted from the employer contribution. Effective Jan. 1, 2019, the long-term care insurance contribution rate for employees in Saxony is 2.025% and the long-term care insurance contribution rate for their employer is 1.025%, for a total long-term care insurance contribution rate of 3.05% for employment in Saxony.

Employee and employer long-term care insurance contribution rates are subject to a long-term care insurance contribution ceiling, which is a maximum amount of wages paid to an employee upon which the employer and employee long-term care insurance contribution rates may be assessed. The long-term care insurance contribution ceiling in effect for a year equals the health insurance contribution ceiling in effect for the year.

Effective for 2022, unchanged from 2021, the long-term care insurance contribution ceiling is €4,837.50 per month or €58,050 per year.

Unemployment Insurance (Arbeitslosenversicherung, abbreviated as AV): Effective from Jan. 1, 2020, to Dec. 31, 2022, the unemployment insurance contribution for employees is 1.2% and the unemployment insurance contribution for employers is 1.2%, for a standard total unemployment insurance contribution of 2.4%.

Employee and employer unemployment insurance contribution rates are subject to an unemployment insurance contribution ceiling, which is a maximum amount of wages paid to an employee upon which the employer and employee unemployment insurance contribution rates may be assessed. As with the standard contribution ceilings for pension insurance, the unemployment insurance contribution ceiling for states of the former country of West Germany, including all of Berlin, is different from the unemployment insurance contribution ceiling for states of the former country of East Germany, excluding all of Berlin. The unemployment insurance contribution ceiling in effect for a year for states of former West Germany equals that year’s standard pension insurance contribution ceiling for states of former West Germany, and the unemployment insurance contribution ceiling in effect for a year for states of former East Germany equals that year’s standard pension insurance contribution ceiling for states of former East Germany.

Effective for 2022, the unemployment insurance contribution ceiling in states of former West Germany is €7,050 per month or €84,600 per year and the unemployment insurance contribution ceiling in states of former East Germany is €6,750 per month or €81,000 per year. Effective for 2021, the unemployment insurance contribution ceiling in states of former West Germany was €7,100 per month or €85,200 per year and the unemployment insurance contribution ceiling in states of former East Germany was €6,700 per month or €80,400 per year.

Accident Insurance (Unfallversicherung, abbreviated as UV) for Work-Related Injuries or Illnesses: Employers, but not employees, are assessed an accident insurance contribution to fund wage-replacement benefits payable to individuals who are either partially or totally incapacitated from working because of an injury or illness they experienced in the course of employment.

An employer’s accident insurance contribution is determined by the employer’s insurer, and accident insurance rates and total amounts payable vary among employers because the rates and total amounts payable are influenced by risk factors associated with an employer’s industry and the varying degrees of risk attributable to employers within an industry.

The average accident insurance rate for employers is 1.3% of total payroll, according to German Statutory Accident Insurance (Deutsche Gesetzliche Unfallversicherung, abbreviated as DGUV).

Insolvency (Insolvenzgeld) Benefit Funding: Employers, but not employees, are assessed an insolvency benefit contribution to fund wage-replacement benefits to individuals who lost work because their employer became insolvent.

Effective for 2022, the insolvency benefit contribution rate for employers is 0.09% of payroll. Effective for 2021, the insolvency benefit contribution rate for employers was 0.12% of payroll.

Registration: Employers are required to register with their local tax office if they meet any of the following criteria:

were established with the intention of making a profit;
represent a share in generic economic transactions;
were established separate from self-employed or freelance work; or
were established separate from the agriculture and forestry industry.

Employers must also register for Social Accident Insurance within a week of beginning business activities. Employers must register with the professional trade association pertaining to their professional category.

Taxable Amounts: Employees and employers are liable to social insurance taxation on all wages earned in Germany, including benefits in kind.

With regard to surcharges paid to employees for Sunday, holiday, and night work, social taxes are only assessed only on the portion of the employee’s hourly wage used for calculating the surcharges that is greater than €25.

Withholding Methods: Employers are responsible for registering their employees in compulsory health insurance and withholding social insurance taxes each month for remittance to the employees’ health insurer, which collects on behalf of the federal government and remits to various other compulsory social insurance funds.

Wage-tax certificates must be transmitted electronically through the ElsterOnline webpageand authenticated by the employer. Individual tax returns are filed for earnings across a full calendar year—Jan. 1 to Dec. 31—and are due by May 31 of the following year.

Recordkeeping: Recordkeeping is maintained online, through the ElsterOnline webpage.

Other Taxes

Germany also has taxes unrelated to social insurance, which are imposed for a variety of reasons. These taxes are imposed on gross taxable wages, or the taxes based on wages, and are collected at source by the employer through the ElsterOnline system.

Benefits Taxation: For some services and supplemental payments provided to employees, employers have the option to pay income tax at flat rates on behalf of employees. If the employer chooses to do so, it is responsible for paying the tax. This practice often is called the lump-summing of income tax (pauschalierung der Lohnsteuer).

The flat tax rates vary depending on the service or payment provided, generally from 15% to 25% of the given value. These benefits are not taxable if the amount paid does not exceed €44 per calendar month.

Additionally, benefits in kind such as room, board, or the use of a company car should be valued and added to the applicable employee’s total wages when the wage tax is assessed.

Solidarity Surcharge: A 5.5% solidarity surcharge (Solidaritätszuschlag) is levied on employees‘ income tax liability instead of their total income. The surcharge is withheld together with income taxes.

For example, a 5.5% solidarity surcharge on €20,000 in income tax liability would equate to €1,100, or a combined tax liability of €21,100, excluding pertinent additional taxes.

No limitation is placed on the total accrual of the solidarity surcharge. Moreover, effective starting Jan. 1, 2021, an individual is exempt from the surcharge if:

income tax under the basic income tax table is less than or equal to €16,956 for individuals who are single; or
income tax under the basic income tax table is less than or equal to €33,912 for individuals who with their spouse are jointly filing as a married couple.

Effective until Dec. 31, 2020, individuals were exempt from the surcharge if:

income tax under the basic income tax table was less than or equal to €972 for individuals who are single; or
income tax under the basic income tax table was less than or equal to €1,944 for individuals who with their spouse are jointly filing as a married couple.

The solidarity surcharge finances the economic revitalization of the federal states in the former German Democratic Republic (GDR), or East Germany, which on average have higher levels of unemployment than other federal states.

Effective starting Jan. 1, 2021, the solidarity surcharge is no longer to be assessed on about 90% of the employees that previously paid the tax. A mitigation zone (Milderungszone) gradually increases the tax rate to the full 5.5% as income increases, with the 5.5% rate only applying to single employees who owe more than €31,528 in income tax for a year or married employees filing jointly who owe more than €63,056 in income tax for a year.

State/Jurisdiction Taxes

Church Tax: Employees who are official members of a religious entity are responsible for paying a church tax (Kirchensteuer) if it is levied by the religious entity. A person’s membership with a church, or religious entity, is determined by that respective entity. The church tax is levied as a percentage of assessed income tax, instead of being assessed directly on income. Like other wage-related taxes, this tax is withheld by the employer and remitted to a local tax office. With regard to the church tax, the local tax office distributes the remitted funds to the religious entity.

The church tax is primarily levied by Roman Catholic Church (römisch-katholische Kirche) dioceses and member churches of the Evangelical Church in Germany (Evangelische Kirche in Deutschland, abbreviated as EKD). In Germany, the terms evangelical church (evangelische Kirche) and evangelical-Lutheran church (evangelische-Lutherische Kirche) apply to all Protestant churches. While each state has a law authorizing the church tax, tax policy is determined by the religious entities themselves.

Some other religious entities, such as Jewish communities (jüdischen Gemeinde), free-religious communities (freireligiösen Landesgemeinde), and the Old Catholic Church in Germany (Alt-Katholische Kirche in Deutschland) also levy the church tax using the same parameters as the larger Christian churches. For Jewish communities, the tax is instead called a worship tax (Kultussteuer).

The church tax is 9% of assessed income tax, except for Bavaria and Baden-Württemberg, where the rate is 8%.

The maximum church tax payable by an employee generally is 3%, 3.5%, or 4% of the employee’s taxable income, depending on the state, except for Bavaria, where there is no cap. The cap also may vary among churches present in a state. In some states, the cap is automatically applied by the tax office, while in others the employee must apply to the church for the cap to come into effect.

A corresponding church tax component is assessed on services and supplemental payments provided to employees for which employers pay income tax at flat rates on behalf of employees under Germany’s benefits taxation provisions. The church tax is assessed as between 4% and 7% of the flat-rate income tax, depending on the state.

An employee’s habitual abode is used to determine the applicable church tax rates and caps.

Some churches assess a special church levy (besonderes Kirchgeld) on the combined income of both spouses in a marriage or civil partnership, when one spouse earns little or no income but is a member of the taxing church, and the other spouse earns most of the income and is not a member of the taxing church. The tax is assessed as a flat rate, ranging from €96 to €3,600 per year or €8 to €300 per month, instead of as a percentage of assessed income tax.

Outside the context of employment, the church tax is assessed on personal income tax liability based on capital gains.

The church tax rates and maximum amounts of church tax payable in each state are as follows:

State	Standard Church Tax Rate	Maximum Church Tax Payable	Church Tax Rate on Flat-Rate Income Taxes
Baden-Württemberg	8%	3.5% of taxable income for the Evangelical Church of Baden and Catholic churches2.75% of taxable income for the Evangelical Church of Württemberg	5%
Bavaria	8%	No cap	7%
Berlin	9%	3% of taxable income	5%
Brandenburg	9%	3% of taxable income	5%
Bremen	9%	3.5% of taxable income	7%
Hamburg	9%	3% of taxable income for the Evangelical-Lutheran Church in Northern Germany and Catholic churches3.5% of taxable income for the Evangelical-Lutheran Church of Hannover, which covers only the district of Hamburg-Cranz	4%
Hesse	9%	4% of taxable income for Catholic churches3.5% of taxable income for Protestant churches	7%
Lower Saxony	9%	3.5% of taxable income	6%
Mecklenburg-Vorpommern	9%	3% of taxable income	5%
North Rhine-Westphalia	9%	4% of taxable income for Catholic churches3.5% of taxable income for Protestant churches	7%
Rhineland-Palatinate	9%	4% of taxable income for Catholic churches3.5% of taxable income for Protestant churches	7%
Saarland	9%	4% of taxable income for Catholic churches3.5% of taxable income for Protestant churches	7%
Saxony	9%	3.5% of taxable income	5%
Saxony-Anhalt	9%	3.5% of taxable income	5%
Schleswig-Holstein	9%	3% of taxable income	6%
Thuringia	9%	3.5% of taxable income	5%

COMPENSATION AND BENEFITS

Much of the administration of labor-related requirements and benefits is the responsibility of the German Trade Union Federation and collective bargaining agreements.

The Federal Leave Act (Bundesurlaubsgesetz, abbreviated as BUrlG) mandates time off, such as vacation. Maternity, parental and sick leave also are required.

Beyond the statutory pension scheme required through the social tax system, company retirement plans are provided to employees on a voluntary basis.

Coronavirus (Covid-19) Guidance: The eligbility requirements for employers to apply for the reduced working hours allowance (Kurzarbeitergeld, abbreviated as Kug) were loosened. An employer’s loss of working hours must result in at least 10%, instead of one-third, of the employer’s employees losing at least 10% of their gross wages for a month for the reduced working hours allowance to be paid. These eligibility requirements are in effect until March 31, 2022.

Employers that start receiving Kurzarbeitergeld payments by Dec. 31, 2021, may apply to the Federal Employment Agency (Bundesagentur für Arbeit) to receive a lump-sum refund of employer social taxes paid on the wages of employees receiving Kurzarbeitergeld payments. From Jan. 1 to March 31, 2022, the refund is 50% of applicable social taxes, and until Dec. 31, 2021, the refund is 100% of applicable social taxes.

Allowances paid to employees by employers in addition to the Kurzarbeitergeld are tax-free if when added together with the Kurzarbeitergeld the sum is up to 80% of the difference between the wages the employee should normally receive and the wages they actually receive for their reduced working hours, effective for pay periods that start after Feb. 29, 2020, and end before Jan. 1, 2022.

Minimum Wage

Effective Jan. 1, 2022, Germany’s national standard minimum wage (Mindestlohn) is €9.82 per hour, and effective July 1, 2022, Germany’s national standard minimum wage is €10.45 per hour. Effective Jan. 1, 2021, Germany’s national standard minimum wage was €9.50 per hour, and effective July 1, 2021, Germany’s national standard minimum wage was €9.60 per hour.

Germany also has industry-specific minimum wages that often are higher than the national standard minimum wage.

The industry-specific minimum wages are as follows:

Effective since Jan. 1, 2021, the minimum wages for the Commercial Airport Security, Ticket and Document Control and Flight Security category are €16.47 in Baden-Württemberg; €15.76 in Bremen, Hamburg, Hesse, Lower Saxony, Schleswig-Holstein, and the city of Munich and the surrounding area; €15.48 in North Rhine-Westphalia; €15.43 in Berlin and Brandenburg; €15.33 in Rhineland-Pfalz and Saarland; €14.22 in Bavaria outside of the Munich area; and €13.64 in Mecklenburg-Vorpommern, Saxony, Saxony-Anhalt, and Thuringia.

Effective since Jan. 1, 2021, minimum wages for the Commercial Airport Security, Security Services category are €17.73 in Baden-Württemberg, Berlin, Brandenburg, Hamburg, Hesse, Lower Saxony, North Rhine-Westphalia, Schleswig-Holstein, and the city of Munich and surrounding areas; €16.90 in Rhineland-Palatinate and Saarland; €15.57 in Mecklenburg-Vorpommern, Saxony, Saxony-Anhalt, and Thuringia; and €14.22 in Bavaria outside of the Munich area.

Effective starting Jan. 1, 2022, the minimum wages for the Financial Industry, Mobile Services category in the West German states are €18.60 in North Rhine-Westphalia; €18.01 in Lower Saxony; €17.91 in Baden-Württemberg and Bavaria; €17.59 in Bremen, Hamburg, and Hesse; €16.60 in Rhineland-Palatinate and Saarland; and €15.48 in Schleswig-Holstein.

Effective starting Jan. 1, 2022, the minimum wages for the Financial Industry, Stationary Services category in the West German states are €15.83 in Bavaria and Hesse; €15.63 in North Rhine-Westphalia; €15.60 in Baden-Württemberg, Bremen, and Hamburg; €15.40 in Lower Saxony; and €13.49 in Rhineland-Palatinate, Saarland, and Schleswig-Holstein.

Effective from June 1 to Dec. 31, 2021, the minimum wages for the Financial Industry, Mobile Services category in the West German states are €18.40 in North Rhine-Westphalia; €17.81 in Lower Saxony; €17.61 in Baden-Württemberg and Bavaria; €17.29 in Bremen, Hamburg, and Hesse; €16.30 in Rhineland-Palatinate and Saarland; and €15.18 in Schleswig-Holstein.

Effective from June 1 to Dec. 31, 2021, the minimum wages for the Financial Industry, Stationary Services category in the West German states are €15.53 in Bavaria and Hesse; €15.43 in North Rhine-Westphalia; €15.30 in Baden-Württemberg, Bremen, and Hamburg; €15.20 in Lower Saxony; and €13.19 in Rhineland-Palatinate, Saarland, and Schleswig-Holstein.

Employees under 18 years of age, interns, and long-term unemployed individuals who are in the first six months of service in a new job are exempt from the requirement to be paid at least the applicable minimum wage.

Employers that breach the new law are subject to a fine of €30,000 to €500,000.

Overtime

No country-wide standard exists for overtime work, except in the cases of pregnant or breastfeeding women.

A pregnant or breastfeeding woman who is at least 18 years may not work for more than 8.5 hours daily or 45 hours weekly. A pregnant or breastfeeding woman who is less than 18 years may not work for more than 8 hours daily or 40 hours weekly.

Employees can be required to perform overtime work only if there is a provision in the employment agreement or in a collective bargaining agreement giving the employer that right. Workers can only be required to work a total of 12 hours more than the normal 48-hour maximum in overtime.

Overtime pay is not required or regulated by statutory law, and in principle it is possible to have some overtime work included in monthly wages. Overtime need only be compensated if it occurs regularly and is necessary to fulfill the workload given the employee or if the employer requires overtime. Otherwise, overtime may be compensated by granting additional time off.

Hours of Work

The number of weekly working hours is limited by statute to 48, but in most cases do not exceed 40. Employees must be given at least 11 hours of uninterrupted rest between shifts. If this period is interrupted, it must be granted in full after the interruption.

Employees must not work for more than six consecutive hours without a break. If they work from six to nine hours, a 30-minute break or two 15-minute breaks must be provided. If they work more than nine hours, a 45-minute break must be provided, which may be split into periods of at least 15 minutes each.

Employers also are responsible for registering with the local employment agency, from which the employer will be given a business number.

Reduced working hours allowance: Employers may apply to the Federal Employment Agency (Bundesagentur für Arbeit) for compensation to employees, known as the reduced working hours allowance (Kurzarbeitergeld, abbreviated as Kug), for working hours lost because of temporary, unavoidable events or economic conditions. Employers must notify the agency of a loss of working hours. In a month for which the reduced working hours allowance is sought by an employer, the loss of working hours must result in at least one-third of the employer’s employees losing at least 10% of their gross wages for the month for the reduced working hours allowance to be paid.

Holidays

All Sundays qualify as holidays, in addition to the days recognized as holidays by each state. Nine days are recognized in all states as public holidays (gesetzliche Feiertage) for which paid leave is required. All states also entitle employees who are members of recognized religious groups to take leave or spend time attending services on religious holidays (kirchliche Feiertage, religiöse Feiertage) that are not public holidays. However, the scope of religious holidays for which leave is required to be made available to employees varies among states. In some states, only additional Christian holidays are recognized. In other states, additional holidays of Judaism, Islam, or Alevism also are recognized. Some states do not recognize specific religious holidays for which leave is required to be made available to employees other than the religious holidays that are nationally recognized as days for which paid leave is required, although employers in these states may choose to provide leave for additional religious holidays specified by employees’ religious groups.

The following days are recognized by all states as holidays for which paid leave is required:

Jan. 1: New Year’s Day (Neujahr).
Good Friday (Karfreitag), the Friday immediately before Easter Sunday.
Easter Monday (Ostermontag), the Monday immediately after Easter Sunday.
May 1: Labor Day (Tag der Arbeit).
Ascension (Christi Himmelfahrt), which occurs 39 days after Easter Sunday.
Whit Monday (Pfingstmontag), also known as Pentecost Monday, which occurs 50 days after Easter Sunday and the day after Whit Sunday, also known as Pentecost (Pfingsten).
Oct. 3: German Unity Day (Tag der Deutschen Einheit).
Dec. 25: Christmas (Erster Weihnachtstag).
Dec. 26: Second Day of Christmas (Zweiter Weihnachtstag).

Each state recognizes additional public holidays beyond the aforementioned holidays recognized in all states. Additionally, several states allow employees to take leave or spend time attending services on the Day of Repentance and Prayer (Buß- und Bettag), a former nationwide holiday which occurs on the Wednesday closest to but before Nov. 23, even though the day is not a public holiday in any state except Saxony.

State holiday laws do not provide for the movement of holidays if they occur on weekends.

Baden-Württemberg

The additional public holidays specified by Baden-Württemberg for which paid leave is required are:

Jan. 6: Epiphany (known in Germany as Epiphanias, Heilige Drei Könige, or Erscheinungsfest).
Corpus Christi (Fronleichnam), which occurs 60 days after Easter Sunday.
Nov. 1: All Saints’ Day (Allerheiligen).

Employers in Baden-Württemberg must allow employees, if business needs do not interfere, to attend services on other religious holidays. The specified religious holidays are:

Maundy Thursday (Gründonnerstag), the Thursday before Easter Sunday.
Oct. 31: Reformation Day (Reformationsfest).

Employees may choose not to work on the Day of Repentance and Prayer without consequences other than possible lost wages.

Bavaria

The additional public holidays specified by Bavaria for which paid leave is required are:

Jan. 6: Epiphany
Corpus Christi, which occurs 60 days after Easter Sunday.
Aug. 15: Assumption (Mariä Himmelfahrt). In Bavaria, Assumption is a public holiday only in municipalities with a Catholic-majority population according to the most recent Bavarian census, representing more than 80% of municipalities in this state. The Bavarian State Office for Statistics maintains a count of Catholic-majority municipalities.
Nov. 1: All Saints’ Day

Employees in areas of Bavaria where Assumption is not a public holiday may choose not to work on Assumption without consequences other than possible lost wages. This treatment also applies to the Day of Repentance and Prayer, as well as to Jewish employees regarding the following Jewish holidays:

The first two days and the last two days of Passover (Pesach). Passover starts at sundown of the 14th day of Nissan, which is the first month of the Hebrew Calendar, ends at sundown on the 22nd day of Nissan, and generally falls in March or April.
Shavuot (two days). Shavuot starts at sundown of the fifth day of Sivan, which is the third month of the Hebrew Calendar, ends at sundown of the seventh day of Sivan, and generally falls in May or June.
Rosh Hashanah (two days). Rosh Hashanah starts at sundown of the last day of Elul, which is the sixth month of the Hebrew Calendar, and ends at sundown of the second day of Tishrei, which is the seventh month of the Hebrew Calendar, and generally falls in September or October.
Yom Kippur (one day). Yom Kippur starts at sundown of the ninth day of Tishrei, ends at sundown of the 10th day of Tishrei, and generally falls in September or October.
The first two days and the last two days of Sukkot. Sukkot starts at sundown of the 14th day of Tishrei and ends at sundown of the 21st day of Tishrei, and generally falls in September or October.

Berlin

The only additional public holiday specified by Berlin for which paid leave is required is March 8, International Women’s Day (Frauentag). A one-off public holiday also occurred on May 8, 2020, for the 75th anniversary of the end of World War II in Europe.

Employers in Berlin must allow Christian, Jewish, and Muslim employees, if business needs do not interfere, to attend services on other religious holidays.

Brandenburg

The only additional public holiday specified by Brandenburg for which paid leave is required is Oct. 31, Reformation Day.

Employers in Brandenburg must allow employees, if business needs do not interfere, to attend services on other religious holidays specified by the employee’s church or religious body, without consequences other than possible lost wages.

Bremen

The only additional public holiday specified by Bremen for which paid leave is required is Oct. 31, Reformation Day.

Employers in Bremen must allow employees, if business needs do not interfere, to attend services of their religion on other religious holidays. The specified religious holiday for Protestants is the Day of Repentance and Prayer.

The specified religious holidays for Catholics are:

Corpus Christi, which occurs 60 days after Easter Sunday.
Nov. 1: All Saints’ Day.

Religious holidays also are specified for Judaism, Islam, and Alevism, the date of which in the Gregorian Calendar were published by the Bremen government. For the Islamic holidays of Eid al-Adha and Eid al-Fitr, which in Bremen are celebrated for four and three days respectively, employers are required to provide leave to attend services on only one of the specified days of each holiday.

Hamburg

The only additional public holiday specified in Hamburg is Oct. 31, Reformation Day.

Employers must allow employees, if business needs do not interfere, to attend services of their religion on other religious holidays.

Hamburg specifies religious holidays only for Islam and Alevism. The specified holidays for Islam are:

Eid al-Fitr, also known as the Festival of Breaking the Fast. The principal day of Eid al-Fitr is internationally recognized as the first day of Shawwal, which is the 10th month of the Islamic Calendar and can fall in any month of the Gregorian Calendar.
Eid al-Adha, also known as the Festival of Sacrifice. The principal day of Eid al-Adha is internationally recognized as the 10th day of Dhu al-Hijjah, which is the 12th month of the Islamic Calendar and can fall in any month of the Gregorian Calendar. The days of celebration of Eid al-Adha recognized by Hamburg for required leave are the 10th and 11th days of Dhu al-Hijjah, and employers are required to provide leave for only one of these two days.
Ashura. The principal day of Ashura is internationally recognized as the 10th day of Muharram, which is the first month of the Islamic Calendar and can fall in any month of the Gregorian Calendar.

Among the holidays that Hamburg recognizes for Alevism is a holiday known as Ashura (called Asure-Tag by Hamburg’s government), that while having the same English name as the Islamic holiday of Ashura, and while being very similar to it, occurs on a different day as recognized by Hamburg.

The specified holidays for Alevism are:

Ashura, which for Alevites in Hamburg occurs on the 13th day of Muharram in the Islamic Calendar.
Feb. 15: Hizir-Lokmasi.
March 21: Nowruz (called Nevruz by Hamburg’s government).

The Gregorian dates of the specified religious holidays, as well as holidays for many other religions, are provided by Hamburg’s government.

Hesse

The only additional public holiday specified by Hesse for which paid leave is required is Corpus Christi.

Employers must allow employees, if business needs do not interfere, to attend services of their religion on religious holidays, but Hesse does not specify any religious holidays for which leave must be provided.

Lower Saxony

The only additional public holiday specified in Lower Saxony for which paid leave must be provided is Oct. 31, Reformation Day.

Employers must allow employees, if business needs do not interfere, to attend services on:

Jan. 6: Epiphany;
Corpus Christi, which falls 60 days after Easter Sunday.
Nov. 1: All Saints’ Day; and
the Day of Repentance and Prayer.

Mecklenburg-Vorpommern

The only additional public holiday specified by Mecklenburg-Vorpommern for which paid leave is required is Oct. 31, Reformation Day.

Employers must allow employees, if business needs do not interfere, to attend services on other religious holidays specified by the employee’s church or religious body, without consequences other than possible lost wages.

North Rhine-Westphalia

The additional public holidays specified by North Rhine-Westphalia for which paid leave is required are:

Corpus Christi, which occurs 60 days after Easter Sunday.
Nov. 1: All Saints’ Day.

Rhineland-Palatinate

Additional public holidays specified in Rhineland-Palatinate are:

Corpus Christi, which falls 60 days after Easter Sunday.
Nov. 1: All Saints’ Day.

Employers must grant paid or unpaid leave at the request of an employee for the Day of Repentance and Prayer, if business needs do not interfere.

Saarland

The additional public holidays specified by Saarland for which paid leave is required are:

Corpus Christi, which falls 60 days after Easter Sunday.
Aug. 15: Assumption; and
Nov. 1: All Saints’ Day.

Employers also must grant leave at the request of Jewish employees for some holidays of Judaism, if business needs do not interfere, without consequences other than possible lost wages. The Jewish holidays for which Saarland generally requires leave to be provided to Jewish employees who request the leave are:

The first two days and the last two days of Passover.
Shavuot (two days).
Rosh Hashanah (two days).
Yom Kippur (one day).
The first two days and the last two days of Sukkot.
Shemini Atzeret and Simchat Torah (two days). This dual holiday starts at sundown of the 21st day of Tishrei and ends at sundown of the 23rd day of Tishrei, with Simchat Torah considered to start at sundown of the 22nd day of Tishrei, and generally falls in September or October.

Saxony

The additional public holidays specified by Saxony for which paid leave is required are:

Corpus Christi, which occurs 60 days after Easter Sunday, only in areas specified by the state Ministry for the Interior.
Oct. 31: Reformation Day; and
the Day of Repentance and Prayer.

Employers must allow employees, if business needs do not interfere, to attend services on additional religious holidays specified by the state:

Jan. 6: Epiphany;
Ash Wednesday, the seventh Wednesday before Easter Sunday (also called Frühjahrsbußtag, or Spring Day of Penance, in Saxony).
Maundy Thursday, the Thursday before Easter Sunday.
Corpus Christi, if it is not a public holiday.
June 24: St. John’s Day (Johannestag), also known as the Nativity of St. John the Baptist.
June 29: Sts. Peter and Paul Day, also known as the Feast of Saints Peter and Paul.
Aug. 15: Assumption.
Nov. 1: All Saints’ Day; and
Dec. 8: Immaculate Conception (Mariä Empfängnis), known internationally as the Feast of the Immaculate Conception.

Saxony-Anhalt

The additional public holidays specified by Saxony-Anhalt for which paid leave is required are:

Jan. 6: Epiphany; and
Oct. 31: Reformation Day.

Employers must grant unpaid leave at the request of employees, if business needs do not interfere, for religious holidays specified by the employee’s church or religious body.

Schleswig-Holstein

The only additional public holiday specified by Schleswig-Holstein for which paid leave is required is Oct. 31, Reformation Day.

Employers must allow employees, if business needs do not interfere, to attend services on religious holidays specified by the employee’s church or religious body. Employers must grant unpaid leave at the request of employees, if business needs do not interfere, for the Day of Repentance and Prayer.

Thuringia

The additional public holidays specified by Thuringia for which paid leave is required are:

Corpus Christi, which occurs 60 days after Easter Sunday, only in municipalities with a Catholic-majority population as specified by the state.
Sept. 20: World Children’s Day (Weltkindertag), which was observed as a public holiday for the first time on Sept. 20, 2019; and
Oct. 31: Reformation Day.

Employers must allow employees, if business needs do not interfere, to attend services on:

Jan. 6, Epiphany;
Corpus Christi, in areas where it is not a public holiday;
Aug. 15: Assumption; and
Nov. 1: All Saints’ Day.

Employers must grant unpaid leave at the request of employees, if business needs do not interfere, for the Day of Repentance and Prayer.

Leave

All employees are entitled to paid leave. The minimum in Germany is 24 working days, in addition to official holidays. Employees must complete six months of work in order to fully qualify. The compensation amount for paid leave is determined based on the average salary during the previous 13 weeks of employment.

During vacation leave, employees are entitled to full remuneration. The law expressly forbids substituting money for vacation. This is permissible only if employment has ended and vacation can no longer be taken.

Maternity Leave: Employers are to give pregnant employees, including consultants and other self-employed persons economically dependent on the employer, six weeks of leave prior to the birth of her child and eight weeks after the birth of the child. In cases of premature births, multiple births, or child disabilities that occur within eight weeks of delivery, female employees are entitled to twelve weeks of leave after birth. During this period, employees are entitled to full pay from health insurance. The Maternity Protection Act (Mutterschutzgesetz, abbreviated as MuSchG) ensures that female employees suffer no financial disadvantages as a result of maternity.

• Parental Leave: Employers are required to give mothers and fathers up to three years of unpaid leave. The first two years have to be taken immediately after the child’s birth and the third year can be taken at any time up to the child’s eighth birthday. Both parents can claim parental benefits if they are on leave during the first 12 months after the child’s birthday. The benefit is calculated at 65% of the parent’s previous monthly salary.

Sick Leave: Employers are to give employees up to six weeks of sick leave at full remuneration. After six weeks, employees are entitled to receive a sickness allowance paid by their statutory health insurance plan in the amount of 70% of employees’ normal pay. The maximum period for this allowance payment is 78 weeks.

Wage Payment

The date of wage payment depends primarily on employment agreements. If there is no agreement and if a payment schedule is not established by the circumstances, remuneration is to be paid after the employee has performed work. If the wage is calculated on a time basis (e.g., weekly or monthly), it has to be paid after the expiration of the period. In general, the wage payment interval may not exceed one month.

Bonuses and Special Benefits

Bonuses: While labor law does not require the payment of bonuses in addition to wages, various sorts of bonuses are commonly provided by German employers. These include:

gratuities;
profit sharing;
supplemental pay;
commissions; and
piecework rates.

Gratuities: Gratuities are special bonuses paid in addition to regular wages on special occasions (e.g. Christmas, anniversaries, annual reports). The most common gratuities are the Christmas bonus and the vacation allowance.

A legal claim for the gratuity can arise from:

a collective bargaining agreement, a works agreement, or an employment agreement;
“operational practice” (i.e. because the bonus has been granted at least three times previously); or
the principle of equal treatment.

The amount of the gratuity for which no legal claim exists may be determined by the employer at its complete discretion.

Profit-Sharing Bonuses/Company Cars: The employee may also receive profit-sharing bonuses. Profit sharing means that employees participate in the company’s operating results. Profit-sharing bonuses are mostly granted at or above executive officer level in addition to fixed remuneration. Employment contracts or work agreements form the contractual basis.

A much more common bonus is to give the employee a company car.

Termination Pay

Employment may also be cancelled at any time by a mutually agreed upon contract between the employer and the employee with or without severance payment through a contract of cancellation. Neither the provisions on protection against dismissal nor the obligation to notify the works council is applicable in such cases. Even pregnant women, severely disabled people, and members of the works council, who all enjoy special protection against dismissal, may conclude a contract of cancellation without requiring the permission of the authorities or the approval of the works council. The employer generally offers a severance payment to entice the employee to accept the offered contract of cancellation.

In the event of dismissal for business-related reasons, the Act on Protection Against Unfair Dismissal (Kündigungsschutzgesetz, abbreviated as KSchG) gives the employee the right to compensation if the employee does not bring an action in a labor court that the dismissal is unjustified or otherwise invalid. In this case, the employee is entitled to severance pay equal to half the employee’s monthly salary for each year of service. The maximum severance payment is 12 times the employee’s monthly salary; 15 times if the employee is at least 50 years of age and has at least 15 years of service; or 18 times if the employee is at least 55 years of age, has not reached the pensionable age, and has at least 20 years of service.

Workers’ Compensation

Workers’ compensation, known as accident insurance (Unfallversicherung, abbreviated as UV), is funded by employer contributions and overseen by German Statutory Accident Insurance (Deutsche Gesetzliche Unfallversicherung, abbreviated as DGUV). Information regarding contributions is available under social taxes. All employees are required to be covered by accident insurance.

Generally, employees who suffer a work-related injury or illness receive a benefit of 80% of their normal wages, but which cannot be higher than their normal net wage. To receive benefits, employees must have a persistent degree of disability of at least 20%. Benefits generally are paid starting with the seventh week of inability to work, as the employer is required to pay wages for the first six weeks, which is known as the continued payment of wages (Entgeltfortzahlung). Benefits end at the end of the 78th week of inability to work, but not before the end of inpatient care if such care is required. Employees who qualify for benefits for at least 26 weeks are eligible to receive a pension. Employees with a total disability may receive a pension of two-thirds of their wages from the 12 months before their injury or illness, and the pension is otherwise prorated based on the degree of disability.

Other kinds of benefits include a care allowance (Pflegegeld) for those who require outside care, with the amount varying depending on the employee’s condition and the amount of care required. A transition allowance (Übergangsgeld) may be paid to individuals who are undergoing rehabilitation, but are not eligible for the continued payment of wages, generally because six weeks of wages have been paid for the same injury or illness in the previous 12 months or the individual does not have four continuous weeks of employment with an employer. The amount of this benefit is 75% of the employee’s normal wages if they have at least one child, and 68% otherwise.

Recordkeeping

Employers in Germany must retain records of their data regarding compensation and benefits.

FOREIGN WORKERS

Foreign workers have the same rights and obligations as non-foreign workers in Germany, provided that they work for a German employer. If a foreign worker is employed by a foreign employer, then they are neither granted access to nor required to finance the country’s social insurance system. These rights and responsibilities might differ based on totalization agreements established with other countries.

As is the case for German employees, employers are responsible for withholding wage taxes and remitting them to the local tax authorities for nonresident employees. Taxes are levied on the full amount of pre-deduction income.

To avoid double-taxation, Germany has signed tax treaties and totalization agreements related to foreign-sourced income with dozens of countries around the world, including a 1979 agreement with the United States covering payroll taxes and social insurance.

General Definition: While tax obligations for foreigners tend to shift for each country based on tax treaty agreements, social insurance taxes do not apply to foreign individuals who meet the following conditions:

seconded to Germany for 6-8 years;
work on behalf of a foreign (non-German) employer;
work on behalf of his/her payroll and account;
if the costs of the assignment are charged to the host company. (This is only possible with a cost-plus agreement to avoid German social security.)

Visas: All visas are to be submitted to the applicant’s local mission office in-person.

Non-EU nationals: Nearly all non-EU foreigners require a visa to enter and stay in Germany. Visas are not required for semi-annual stays of less than 90 days for citizens of countries for which the EU has abolished visa requirements. The United States is one of these countries and American citizens do not require visas to travel into Germany for less than 90 days. However, all foreigners staying in excess of 90 days are to apply for a work or student visa.

Blue Card: The Blue Card is a work permit intended to permit highly educated non-EU citizens to work and live in the EU. Workers who receive the Blue Card are required to meet two criteria: (a) a degree from a university and (b) an annual salary of at least €48,400 (some exceptions may apply). In return, the recipient is granted a one-track permit process valid for two years and additional rights tailored to family reunification. The card is intended to be equivalent to the U.S. green card and encourages long-term residency in an EU country.

EU nationals: EU citizens do not require a visa to enter the Federal Republic of Germany. A subset of European travelers from Schengen states—so-named for the 1995 Schengen Agreement—are permitted to remain in the contiguous Schengen zone for up to 3 months per half-year without identity checks provided they have a Schengen stamp on their visas.

Other skilled workers: The following list of workers may be awarded a temporary residence permit to work, provided they do not qualify for the Blue Card, without a salary requirement:

professionals with a university degree without restriction to a specific career field;
IT professionals with a university degree or equivalent qualification (former owner of Green Cards);
graduates of German universities (without priority check);
scholars and academic staff at universities and research institutions as well as engineers and technicians working in research teams of scientists (without priority check);
executives (without priority check);
teachers in public schools and alternative schools (without priority check);
professional athletes and coaches (without priority check);
artists, journalists;
specialty chefs;
occupations because of international agreements such as contract workers and employees to vocational and language training; and;
employment of other professionals when there is a public interest.

Taxes: Non-German employers are not required to withhold wage taxes for non-German employees working in Germany for less than five years, although they must maintain bookkeeping records if ordered to do so by their local tax office. Expatriate employees are required to file income tax prepayments to a local tax office in their Federal state.

Nonresident employees, with neither a residence nor habitual abode in Germany, generally possess a limited tax liability if they work for a non-German company. Limited tax liability pertains only to domestic income, or income accrued while working in Germany. Foreign employees are subject to similar withholding taxes, including the solidarity surcharge, if they earn income from employment. Foreign employee income tax is deducted by the employer and paid directly to the German tax office in the state of employment at the time the employee is paid.

Additional information can be found in the analysis of the U.S.-German totalization agreement.

The Federal Central Tax Office exempts foreign taxpayers from some taxes deducted at source or exempts the German employer from the obligation to deduct them based on the Income Tax Act (Einkommensteuergesetz, abbreviated as EStG) and applicable double taxation agreements (DBA) with countries around the world.

Church tax: Foreign workers are subject to the church tax if they have a residence in Germany and belong to a church that levies the church tax. The German Bishops’ Conference (Deutsche Bischofskonferenz, abbreviated as DBK) considers any baptized member of the Catholic Church to be subject to the church tax. The Evangelical Church in Germany (Evangelische Kirche in Deutschland, abbreviated as EKD) considers foreign workers who are members of a Protestant church in their home country to be subject to the church tax.

Wages/Payments: There is no requirement that foreign workers be paid in euro.

Termination: All gainfully employed persons, whether domestic or foreign, are entitled to unemployment insurance.

WORKING IN THE UNITED STATES

Foreign workers from Germany must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate

Germany is eligible for the visa waiver program for business visitors, which allows German citizens to travel to the U.S. for 90 days or less for business-specific purposes without having to obtain a B-1 business visa. Stays longer than 90 days will require a visa. Individuals may return to the U.S. under the visa waiver program if a “reasonable length of time” has passed. The determination for a reasonable length of time is at the discretion of the Department of Homeland Security.

U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.

For tax purposes, German citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under certain tax treaty provisions or they work under specific visa types that exempt earnings from taxes. Germany has both a tax treaty and a social tax totalization agreement with the U.S.

State and local taxation of German workers also can apply, although some states within the U.S. recognize international tax treaties that can eliminate that income tax liability for foreign workers.

The U.S. labor laws apply to all workers employed and providing services in the country.

Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.

Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the

Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.

Income Taxes: Generally, nonresidents in the U.S. who are from Germany and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.

A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Germany and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c.

Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the

Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.

An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the

Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.

Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.

Tax treaties: Germany and the U.S. have a tax treaty with provisions addressing host country taxation of the nonresident workers. A summary of those benefits is listed in the Tax Treaty Exemption Comparison Chart. To claim the treaty benefit, the nonresident must file Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with the employer.

Students, trainees and teachers in particular must include a statement with Form 8233 to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. This statement affirms that the student or trainee is temporarily in the U.S. for purposes of teaching or has accepted an invitation by the U.S. government (or by a political subdivision or local authority) for the purpose of studying or engaging in research for a period of two years for teachers and four years for students by a university or other recognized educational institution in the U.S. It also must affirm that the individual will receive compensation for services performed in the U.S. The student exemption is not to exceed U.S. $9,000 a year; no limit is placed on the teacher compensation for German residents.

Examples of the statements necessary to claim a treaty exemption from U.S. taxes are included in Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens.

Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.

Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.

Totalization Agreements: Social Security totalization agreements can allow foreign workers and U.S. nationals working abroad to avoid paying into two social security systems while being subjected to losing benefits for their home country system. Under totalization agreements, generally, foreign workers will only pay into one of the social security systems- either the home or the foreign system- but not both. Foreign nationals, utilizing a totalization agreement, also can count years of contributions paid to different social security systems to all of the systems they have contributed to in order to be eligible for benefits in one country.

Germany and the U.S. have entered into a totalization agreement and a summary of those provisions is included in

Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.

There are no particular requirements that employees be paid in U.S. dollars.

TREATY ARRANGEMENTS

Germany has entered into more than 95 income tax treaties, including an income tax treaty with the United States. Germany also has over a dozen totalization agreements, including an agreement with the United States.

The U.S.-Germany totalization agreement is specifically designed to address lapses in monthly retirement, disability, and survivors’ benefits within the social security programs of one or both of the signatory countries. Additionally, the agreement assists in reducing or eliminating social security contribution obligations imposed by both countries on the same earnings. The agreement allows employees who have paid into both systems, but might not have paid into either enough to be eligible for benefits, to combine their social program credits to qualify for coverage in at least one country.

Germany’s tax treaties are available in

RESOURCES

All in English unless otherwise noted.

General

Embassy of Germany in Washington, D.C.

U.S. Central Intelligence Agency:

The World Factbook: Germany
The World Factbook: Languages

U.S. State Department: U.S. Relations With Germany

U.S. Department of Commerce: Export.gov: Germany - Business Travel

Currency Details

Unicode Consortium: Currency Symbols

International Organization for Standardization: Currency Codes - ISO 4217

United Nations: United Nations Terminology Database: Germany

Taxes

“An ABC of Taxes” Guide by the Federal Ministry of Finance

Bundeszentralamt für Steuern (Federal Central Tax Office) (German)

Federal Central Tax Office: General Tax Information

Church Tax Forum (German)

ElsterOnline (German)

Federal Central Tax Office: State Finance Ministries and Tax Offices

Federal Tax Code (German)

Germany/Poland Covid-19 Cross-Border Commuter Agreement

German Pension Insurance Agency: Our Social Insurance (German)

Verordnung über maßgebende Rechengrößen der Socialversicherung für 2021 [Regulation on Controlling Thresholds for Social Insurance for 2021], Nov. 30, 2020, Bundesgesetzblatt Part I, No. 57 of 2020 (German)

Income Tax Calculator (German)

Income Tax Act (German)

Social Insurance System Overview (U.S. Social Security Administration)

Regulations on Social Insurance Contributions (German)

Compensation and Benefits:

Federal Leave Act (German)

German Social Accident Insurance (German)

Industry-Specific Minimum Wages (German)

Workers Act (German)

Working Standards Act (German)

Minimum Wage Commission: Reports/Resolutions

Entgeltfortzahlungsgesetz [Continued Payment of Wages Act] (German)

Dritte Verordnung zur Anpassung der Höhe des Mindestlohns [Third Regulation Adjusting the Amount of the Minimum Wage], Nov. 9, 2020, Bundesgesetzblatt Part I, No. 51 of 2020 (German)

Verordnung über Erleichterungen der Kurzarbeit [Regulation Regarding Reduced-Time Working Allowance Relief], March 25, 2020, Bundesgesetzblatt Part I, No. 14 of 2020 (German)

Jahressteuergesetz 2020 [Annual Tax Act 2020], Dec. 28, 2020, Bundesgesetzblatt Part I, No. 65 of 2020 (German)

Foreign Workers

Federal Employment Agency

Bavarian Ministry of Family, Labour and Social Affairs: Foreign Workers‘ Rights Regarding Social Insurance (German)

Foreign Office: Working in Germany (German)

Foreign Office: Visa Regulations (German)

German Embassy: Visa Instructions

Act on the Residence, Economic Activity and Integration of Foreigners in the Federal Territory (Residence Act)

Working in the United States

U.S. Internal Revenue Service:

IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
IRS Publication 15, Circular E, Employer’s Tax Guide
IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
IRS Publication 519, U.S. Tax Guide for Aliens
IRS Publication 901, U.S. Tax Treaties

U.S. Labor Department, Foreign Labor Certification

Treaty Arrangements

Federal Ministry of Finance, Double Taxation Agreements and Other Tax-Related Treaties (German)

Industry Sector	Hourly Minimum Wage Applicable to West Germany and Berlin (Euro)	Hourly Minimum Wage Applicable to East Germany (Euro)
Chimney Sweeps	€13.20	€13.20
Cleaning Industry, Interior Cleaners and Maintenance Workers	€11.55 (effective Jan. 1, 2022)€12.00 (effective Jan. 1, 2023)	€11.55 (effective Jan. 1, 2022)€12.00 (effective Jan. 1, 2023)
Cleaning Industry, Exterior and Glass Cleaners	€14.81 (effective Jan. 1, 2022)€15.20 (effective Jan. 1, 2023)	€14.81 (effective Jan. 1, 2022)€15.20 (effective Jan. 1, 2023)
Construction Industry Skilled Workers, Machinists, and Drivers	€15.70 (€15.55 in Berlin) (effective May 1, 2021)	€12.85 (effective May 1, 2021)
Construction Workers	€12.85 (effective May 1, 2021)	€12.85 (effective May 1, 2021)
Commercial Airport Security, Security Services	€14.22 to €17.73, varies by state	€15.57 to €17.73, varies by state
Commercial Airport Security, Service Activities and Passenger Services	€12.90	€12.90
Commercial Airport Security, Ticket and Document Control and Flight Security	€14.22 to €16.47, varies by state	€13.64 to €14.53, varies by state
Educational and Continuing Education Services	€17.18 (effective Jan. 1, 2022)	€17.18 (effective Jan. 1, 2022)
Educational and Continuing Education Services, Employees with Additional Qualifications	€17.70 (effective Jan. 1, 2022)	€17.70 (effective Jan. 1, 2022)
Financial Industry, Mobile Services (Money Transport)	€15.48 to €18.60, varies by state (effective Jan. 1, 2022)(€15.22 in Berlin)	€15.22 (effective Jan. 1, 2022)
Financial Industry, Stationary Services (Money Processing)	€13.49 to €15.83, varies by state (effective Jan. 1, 2022)(€12.96 in Berlin)	€12.96 (effective Jan. 1, 2022)
Installers of Electrical and IT Equipment	€12.90 (effective Jan. 1, 2022)(€13.40, effective Jan. 1, 2023)(€13.95, effective Jan. 1, 2024)	€12.90 (effective Jan. 1, 2022)(€13.40, effective Jan. 1, 2023)(€13.95, effective Jan. 1, 2024)
Meatpacking, Meat Processing, and Slaughterhouses	€11.00 (effective Jan. 1, 2022)€11.50 (effective Dec. 1, 2022)€12.30 (effective Dec. 1, 2023)	€11.00 (effective Jan. 1, 2022)€11.50 (effective Dec. 1, 2022)€12.30 (effective Dec. 1, 2023)
Nursing Industry (Non-Institutional), Unskilled	€12.00 (effective Sept. 1, 2021)€12.55 (effective April 1, 2022)€13.70 (effective Sept. 1, 2022)€13.90 (effective May 1, 2023)€14.15 (effective Dec. 1, 2023)	€12.00 (effective Sept. 1, 2021)€12.55 (effective April 1, 2022)€13.70 (effective Sept. 1, 2022)€13.90 (effective May 1, 2023)€14.15 (effective Dec. 1, 2023)
Nursing Industry (Non-Institutional), Skilled	€12.50 (effective April 1, 2021)€13.20 (effective April 1, 2022)€14.60 (effective Sept. 1, 2022)€14.90 (effective May 1, 2023)€15.25 (effective Dec. 1, 2023)	€12.50 (effective Sept. 1, 2021)€13.20 (effective April 1, 2022)€14.60 (effective Sept. 1, 2022)€14.90 (effective May 1, 2023)€15.25 (effective Dec. 1, 2023)
Nursing Industry (Non-Institutional), Specialized Nurses	€15.00 (effective July 1, 2021)€15.40 (effective April 1, 2022)€17.10 (effective Sept. 1, 2022)€17.65 (effective May 1, 2023)€18.25 (effective Dec. 1, 2023)	€15.00 (effective July 1, 2021)€15.40 (effective April 1, 2022)€17.10 (effective Sept. 1, 2022)€17.65 (effective May 1, 2023)€18.25 (effective Dec. 1, 2023)
Painters and Varnishers, Skilled	€13.50	€13.50
Painters and Varnishers, Unskilled	€11.10	€11.10
Roofers, Unskilled	€13.00 (effective Jan. 1, 2022)€13.30 (effective Jan. 1, 2023)	€13.00 (effective Jan. 1, 2022)€13.30 (effective Jan. 1, 2023)
Roofers, Skilled	€14.50 (effective Jan. 1, 2022)€14.80 (effective Jan. 1, 2023)	€14.50 (effective Jan. 1, 2022)€14.80 (effective Jan. 1, 2023)
Scaffolders	€12.55 (effective Oct. 1, 2021)(€12.85, effective Oct. 1, 2022)	€12.55 (effective Oct. 1, 2021)(€12.85, effective Oct. 1, 2022)
Stonemasons and Sculptors	€12.85 (effective Aug. 1, 2021)(€13.35, effective Aug. 1, 2022)	€12.85 (effective Aug. 1, 2021)(€13.35, effective Aug. 1, 2022)
Temporary Employment	€10.45 (effective April 1, 2021)(€10.88, effective April 1, 2022)	€10.45 (effective April 1, 2021)(€10.88, effective April 1, 2022)
Waste Management	€10.45 (effective Oct. 1, 2021)	€10.45 (effective Oct. 1, 2021)