Employer of Record services for Germany
Hire employees in Germany quickly & compliantly with our EOR solution. We take care of German payroll, tax deductions, and statutory benefits – no GmbH required.
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 is complex, from strict employment laws to intricate tax systems. That’s where TopSource’s Employer of Record services make the difference.
We don’t just enable hiring without a local entity. We simplify every step after.
We manages contracts, payroll, and statutory benefits in full compliance with German labor law, while providing hands-on support to your HR team.
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
United Kingdom
| British Pound | United Kingdom | |
|---|---|---|
| Base Salary (per month) | £2,913.58 | £2,913.58 |
| Local employer’s cost | £384.88 | £384.88 |
| Total Cost (Annual) | £39,581.54 | £39,581.54 |
| British Pound | United Kingdom | |
|---|---|---|
| Base Salary (per month) | £2,913.58 | £2,913.58 |
| Local employer’s cost | £384.88 | £384.88 |
| Total Cost (Annual) | £39,581.54 | £39,581.54 |
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
Read more
Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
Read more
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.
Read more
Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
Read more
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 can engage both contractors and full-time employees.
Yes, full-time employees are legally entitled to a minimum of 20 paid vacation days per year, based on a 5-day work week. In practice, most employers offer 25–30 days as part of a competitive benefits package. Sick leave and parental leave are also strongly protected.
Severance pay is not automatic by law, but it’s often negotiated, especially in cases of redundancy or collective agreements. A typical guideline is half a month’s salary per year of service, but exact amounts depend on the case.
Germany recognizes 13 national public holidays, but the exact number varies by state (Bavaria, for example, has up to 14). Employers need to account for both federal and regional holidays when planning work schedules and payroll cycles.
Yes. Local statutory benefits are included and optional upgrades are available.
Yes, our EOR services are fully compliant with German labor laws.
Yes, with limitations based on local labor laws.
While contractors allow fast market entry, misclassification is a major risk. If a contractor is found to be working as an employee in practice, the employer could face fines, back taxes, and liabilities. Using a compliant employment model helps mitigate this risk.
On top of gross salary, employers usually contribute 20–22% toward social security, which covers pension, health, unemployment, and long-term care. These contributions significantly affect the total cost of employment, making careful payroll planning essential.
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.