Employer of Record Germany
Employee Benefits in Germany
Explore the many Germany Employee Benefits available and what’s included
Employer of Record
Download our full Germany Employment Guide
Find out all about employing in Germany
Germany Social Security System
In Germany, the Social Security system consists of the following five main pillars:
- Healthcare
- Long Term Nursing Care
- Pension Insurance
- Unemployment Insurance
- Accident Insurance (covers occupational accidents, commuting accidents and occupational diseases as required by German law)
| Threshold | Employer Cost | |
|---|---|---|
| Healthcare* | 4,837.50 Euros | 7.3% |
| Long Term Nursing Care* | 4,837.50 Euros | 1.525% |
| Pension* | 7,100 Euros | 9.3% |
| Unemployment Insurance* | 7,100 Euros | 1.2% |
| Accident Insurance | n/a | Variable |
*split equally by the employer and employee
In addition to the above, there are supplementary levies which have to be paid by the employer (U1 & U2). These relate to continuation of payment in the event of sickness & maternity respectively and the costs are dependent on the health insurance company to which the employee is affiliated.
German Healthcare Benefits
Germany has a universal multi-payer healthcare system that is funded by a combination of private health insurance (Private Krankenversicherung), also known as “(private) sickness funds,” and statutory health insurance (Gesetzliche Krankenversicherung), which is officially referred to as “sickness funds” (Krankenkassen).
- Legal Health Insurance, or GKV (Statutory Health Insurance). According to estimates, statutory health insurance covers about 90% of Germany’s population. There are around 97 state health insurances in Germany each offering slight variations in their service and supplementary services (optional services). As such, when employees choose their provider, they will almost certainly wish to take into account the amount of the supplementary contribution. The more common providers are; Techniker Krankenkasse, AOK and DAK
- PKV, or Private Krankenversicherung (Private Health Insurance). The self-employed and those with higher salaries make up about 10% of the population in Germany who have access to this sort of health insurance. Employees can choose to enrol in the private healthcare system if they meet specific requirements, such as having a minimum annual salary of Euros 60,750 ((2019)).
In Germany, there is a legal need for employees to register with one of the mandated healthcare providers.
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We are Germany Employer of Record experts
We have extensive experience helping businesses expand their workforce in Germany. Take a look at our areas of expertise to find out more:
Find out how payroll works in Germany and what you can expect when it comes to salaries, bonuses and rates of pay
Enhance your understanding of what your employee is entitled to when working in Germany
Unsure what’s required when employing staff in Germany? Find out about German Work Permits and Visas here
Wondering what it’s like to work in Germany? We’ve got you covered in our extensive guide
We will take care of all Payroll, HR and Legal processing with a fully-manged EOR service in Germany.
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
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Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an employer of record company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!