Employer of Record Germany
Payroll & Tax in Germany
A beginners guide to understanding payroll in Germany
Employer of Record Germany
Download our full Germany Employment Guide
Find out all about employing in Germany
How we can help
Our fully-compliant payroll services in Germany ensures your employees are paid on time, everytime
Whatever the territory or region, you need to attract and retain the best talent. But different countries and different cultures mean different employee expectations.
Payroll is key for any business; paying the correct salary to your business’s employees is vital. Using Agility EOR means that your employees are paid on time, every time, when they are working in Germany.
Agility EOR offers the following payroll services in Germany:
- Salaries paid per month, in local currency
- Electronic payslips
- Statutory filing completed by us
- End of year reporting
what to expect
How does Payroll in
Germany work?
Pay your staff once a month
Salaries in Germany are paid once per month, and in 12 equal instalments. There is no requirement to pay a 12 or 13th month and it’s neither customary to do so in Germany.
Discretionary bonuses
When paying bonuses to employees in Germany, it's crucial to have such a clause in the contract and for the measurables and targets to be extremely explicit. In the event of any ambiguity, it is likely that the German courts will rule in the favour of the employee, meaning that a discretionary bonus could be deemed to be guaranteed, resulting in the employee being paid the full amount even if they were not entitled to it. The Agility EOR Contracts Team will guide our clients on this during the onboarding process.
National minimum wage
Employees must be paid at least the national minimum wage of €12.00 per hour. This includes overseas workers working in Germany for short periods (e.g. spending the summer holidays in Germany), and workers employed here who are temporarily working abroad (e.g. spending the summer holidays overseas).
Germany Employee Benefits
We understand that attracting and retaining the best talent is vital for any business. Here at Agility EOR we always go the extra mile for our clients and employees. We provide both statutory and enhanced employee benefit packages, from medical and dental packages through to share options and equity stakes.
Working with you, we’ll devise benefits packages that are appropriate within Germany and are compliant with German law.
Germany Statutory Leave
Agility EOR work with our in-country legal experts and experienced staff to easily guide you through the myriad of complex laws and regulations in Germany.
- Holiday Entitlement
- Maternity Leave
- Paternity Leave
- Parental Leave
- Sick Leave
Wondering if expanding
in Germany is right for you?
Read on or speak to a member of our team now
learn more
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:
Learn more about how you can attract and retain staff in Germany with both statutory and enhanced employee benefits
Wondering what it’s like to live and work in Germany? We’ve got you covered in our extensive guide, including the do’s and don’ts
Enhance your understanding of what’s included with Statutory Leave in Germany
Unsure about what’s required when employing staff in the Germany? Find out about German Work Permits and Visas here
We take care of all Payroll, HR and Legal processing with our 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
Learn more
Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an Employer of Record company. The Employer of Record 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, NGO (Not for Profit) 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 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!