Employer of Record services in Germany
Hire in Germany fast and fully compliant with our Employer of Record (EOR) service. We handle payroll, taxes, and benefits — no GmbH setup needed.
Rated 5/5 by Gartner users
Employer of Record in Germany: Simplify hiring, payroll & market entry
No need for a GmbH
Stay compliant
Faster hiring
Reduced risk
“Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.”
“Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.”
“TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.”
Why use our EOR to employ in Germany?
Expanding into Germany can be complex, with strict employment laws and detailed tax requirements. That’s where TopSource’s Employer of Record Germany service makes hiring simple.
We don’t just help you hire in Germany without setting up an entity — we make every step fully compliant. Our German EOR is licensed under the AÜG (Arbeitnehmerüberlassungsgesetz), the country’s labour-leasing law, ensuring every hire meets German standards for payroll, tax, and social insurance.
From compliant employment contracts to statutory benefits and payroll management, we handle everything while your HR team focuses on growing your German workforce with confidence.
Hiring in Germany with an Employer of Record. Your step-by-step guide
Employment costs for Germany
Estimate the cost of your new hires in Germany with our calculator. Simply enter their salary information to get a high level breakdown of the actual cost of employment.
Employment Cost Calculator
*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertGermany
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More than an Employer of Record.
Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.
Market Selection Advisory
Compare available talent, compensation, additional costs and regulations across different countries
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Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
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Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
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Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
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Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
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Hiring in Germany: at a glance
If you’re hiring in Germany through an Employer of Record, these quick facts cover the essentials: currency, minimum wage, payroll cycle, and severance rules.
Currency
Euro (€), the official EU currency.
Minimum wage
€12.82/hour (≈€2,161/month).
Payroll cycle
Typically paid end of the month.
Termination & severance
Due process required; severance based on tenure and contractual agreements.
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ExploreFrequently asked questions
Yes. We manage Germany’s social insurance system, which covers pension, health, unemployment, and long-term care insurance and totals roughly 40% of gross salary split close to evenly between employer and employee, along with wage tax (Lohnsteuer) withholding. We also structure contracts to comply with the Kündigungsschutzgesetz (Dismissal Protection Act), which applies once a company has more than ten employees and the employee has more than six months of service.
Statutory social insurance is comprehensive by international standards, so competitive differentiation in Germany usually comes from a company pension scheme (betriebliche Altersvorsorge) above the statutory minimum, a 13th month or holiday bonus (common by contract or collective agreement though not universally mandated by law), and additional vacation days above the statutory 20 days for a five-day work week. Job security and clear progression paths also weigh heavily with German candidates.
Statutory notice periods scale with tenure, starting at four weeks and extending up to seven months for employees with 20 or more years of service, and dismissal protection law makes termination without a valid business, personal, or conduct-related reason very difficult once it applies. Works councils, where present, also have consultation rights before terminations, which is a distinctly German compliance step many international employers aren’t expecting.
An EOR can typically onboard within one to two weeks for social insurance registration and contract execution, compared with the several weeks to a few months needed to establish a GmbH or branch, register for a tax number, and set up payroll compliant with German wage tax and social insurance rules. Given Germany’s strong dismissal protections, getting the initial contract right matters just as much as onboarding speed.
Germany combines high statutory social costs with some of the strongest employee dismissal protections in Europe, both of which are easy to get wrong without local expertise. An EOR takes on the legal employer role, correctly applies social insurance and works council obligations, and carries the associated compliance risk, which is typically the safer and faster path for an initial German hire or small team.
Beyond Germany: Where else can you hire with our EOR services
We help you legally employ and pay talent across 180+ countries—so you can scale faster.
