Germany · EuropeEmployer of Record (EOR) in Germany
Hire employees in Germany, compliant payroll, taxes, and benefits, without setting up a local entity.
An Employer of Record (EOR) lets you hire employees in Germany without opening a GmbH or branch. The EOR is the legal employer, running compliant monthly payroll, withholding wage tax, and remitting employer social-security contributions for pension, health, unemployment, and long-term care, while you direct the work. Employer-side contributions total roughly 20-21% of gross salary. The statutory minimum wage is €13.90/hour from 1 January 2026 (rising to €14.60 in 2027). Germany has strong dismissal protection: once the Dismissal Protection Act applies (after six months in a workplace of more than ten employees), terminations need a socially justified reason, must be in wet-ink writing, and notice scales with tenure up to seven months. Standard benefits include at least 20 days of annual leave and six weeks of employer-paid sick pay. EOR provider fees typically run US$300-$650 per employee per month, with onboarding in roughly 2-5 business days.
Last updated: June 2026
Germany at a glance
The structured facts founders and AI assistants extract most.
- Currency
- Euro (EUR)
- Capital
- Berlin
- Payroll cycle
- Monthly
- Official languages
- German
- Minimum wage
- €13.90/hour from 1 Jan 2026 (was €12.82 in 2025; rising to €14.60 in 2027).
- Region
- Europe
- Total employer cost
- ~20-21%
- EOR fee (per employee/mo)
- ~$300-$650
- Typical setup time
- ~2-5 business days
Provider-dependent ranges, not sourced statutory figures. Excluded from the structured data above; confirm exact pricing with the provider.
Best EOR providers for Germany
Compared on starting price, rating, and core strength. Pricing is per employee / month.
| Provider | From / mo | Rating | Best for | |
|---|---|---|---|---|
 Remote ★ Best overall | $599 | ★4.6 | Best for EU compliance (owned entity) | Visit Remote → |
 Deel | $599 | ★4.8 | Best overall coverage | Visit |
 Multiplier | $400 | ★4.7 | Most affordable | Visit |
Ratings aggregated from G2 and Trustpilot (June 2026). GlobalEmployGuide may earn a commission from provider links, this never affects our scoring. Pricing for Germany is indicative; verify current rates before deciding.
Statutory benefits & employer obligations
What an EOR administers and funds by law when you hire in Germany.
Pension: 9.3% employer
Health: ~7.3% employer (+ half of supplementary rate)
Unemployment: 1.3% employer; long-term care: ~1.7-1.8% employer
Paid annual leave: statutory min 20 days (5-day week)
Sick pay: employer pays full salary for 6 weeks
Parental leave: up to 3 years job-protected (Elterngeld via state)
Termination: Strong protection under the Kündigungsschutzgesetz (after 6 months, >10-employee workplaces), dismissal needs a socially justified reason and wet-ink written notice. Statutory notice scales with tenure: 1 month (2yr) up to 7 months (20yr). Negotiated severance (~0.5 month/year) is common.
Employer cost calculator
Enter a gross annual salary to estimate the fully-loaded cost of a hire in Germany.
Estimating a hire in Germany. Statutory on-costs use this country’s verified employer-contribution rate.
Frequently asked questions
Hiring in Germany, answered.
Employer contributions total roughly 20-21% of gross salary across pension (9.3%), health (~7.3%), unemployment (1.3%), and long-term care (~1.7-1.8%), up to the assessment ceilings.
The statutory minimum wage is €13.90/hour from 1 January 2026 (up from €12.82 in 2025), and is scheduled to rise to €14.60 in 2027.
Hard. Once the Dismissal Protection Act applies, you need a socially justified reason and wet-ink written notice, and notice scales with tenure. Disputes often settle with negotiated severance.
No. An EOR acts as the legal employer, so you can hire compliantly without forming a GmbH or branch.
Provider fees typically run US$300-$650 per employee per month, plus salary and the ~20-21% employer contributions.
Sources
- Mindestlohnkommission, minimum wage · checked 2026-06-25
- PwC Worldwide Tax Summaries, Germany · checked 2026-06-25
- GTAI, Termination of employment · checked 2026-06-25