deel.Full-time employee details for Germany With Deel, your business can easily hire employees in Germany. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. See Currency Employer Cost Onboarding Payroll Cycle Euro (EUR) 22.33%" 6 business days Monthly deel.Benefits Deel allows you to provide localized benefits for employees in Germany within minutes. All in one manageable online dashboard. Unemployment insurance Pension fund Nursing care insurance Health insurance (Long term insurance fee) Accident security (Worker compensation Maternity insurance) Additional Benefits Private Healthcare (optional) Deel has partnered with AXA healthcare for German employees. We offer a FlexMed Medical plan, which combines health and well-being While Germany does offer access to public healthcare, employers will have the option to provide private, supplemental health coverage at a competitive price to their employees. deel.Pay & Tax Minimum Wage Requirements Overtime Pay & Maximum. Hours Payroll Schedule Bonus Indi The minimum wage is EUR 2088 per month (EUR 12 per hour) Overtime payment is not mandatory. Overtime can be compensated in time off or financially, based on the employer's discretion. Hours outside of standard work hours are considered overtime. Employees can work a maximum of two hours of overtime a day, and 12 hours a week. For additional hours, employees are paid the same hourly wage as their regular salary. For planned overtime, the employee is required to inform the employer four days in advance. Standard working hours are eight hours per day, 40 hours per week. The standard workweek is from Monday to Friday. Schedule Date Payroll cycle 1st - end of month Payroll cut off date 20th of the month Invoice issued 26th of the month Payment date Last day of the month Employee paid: 30th (or last day) of month An employee is not legally entitled to additional bonuses. However, an employer can grant voluntary bonuses that will be taxed as salary. The individual income tax ranges from 14% to 45%. Income tax is calculated according to progressive rates. The rate is based on the employee tax class (marital status, employees with one or more income source, etc.) and the amount of monthly wages. These rates are updated annually by the Federal Government. deel.Leave Policy Maternity Leave Paternity Leave Parental Leave Pregnant employees are entitled to 14 weeks of paid leave. six weeks must be taken before the child's birth, and the remaining eight weeks must be taken after the child’s birth, ‘The employee will receive 100% of the average net salary of the last three months during this period. The employer and health insurance company are responsible to pay parts of the salary. However, the employer gets a 100% refund from the health insurance company during the "U2-process” ‘The employee is required to submit a medical certificate with the expected date of birth to the employer. A special regulation applies to premature or multiple births as well as to children with disabilities, in which case there is maternity protection for as long as 12 weeks after the birth. ‘The employee cannot extend leave, however, they can take unpaid parental leave. In Germany, no law specifically covers paternity leave. However, employees are entitled to parental leave. Employees are entitled to a maximum of three years of parental leave per child, to be taken until the third birthday of the child. The employee will be given a minimum of EUR 300 and a maximum of EUR 1,800, This payment will be made if the employee has worked before the parental leave, and will be calculated by “Elterngeldstelle” (state parental allowance fund) based on the last 12 months gross salary and after subtracting the flat rate for tax and health insurance. ‘The employee needs to provide a notice of seven weeks before they intend to start parental leave, Parental leave can't be extended deel.Sick Leave There is no maximum limit for paid sick leave in Germany. The employee will be paid 100% of their salary during sick leave. The first six weeks (42 days) of leave are paid by the employer, after which the health insurance company covers the leave To claim leave, the employee has to submit a sick note to the employer and health insurance company. The employee has to work for a minimum of four weeks before being entitled to sick pay by the employer. If the employee falls sick in the first four weeks of employment, the leave will be covered by health insurance. To claim insurance, the employee has to apply and send a sick note to the health insurance company. Employees can get 30 days of paid leave per parent if their child is sick This payment is made by the health insurance company. To claim leave, the employee has to submit a sick note for the child and has to apply for it with the health insurance provider. Termination Terminations in Germany can be complex. There is no at-will termination in Germany for employers, outside the probation period, and termination must be done for just cause. Compliant terminations include: + Voluntarily by the employee + By mutual agreement + Unilaterally by the employer based on + Probation period + Conduct-related dismissal: breach of employment terms + Person-related dismissal: employee unsuitable to work due to illness + Business-related dismissal: operational reasons (job position no longer required) + By the expiration of the contract Severance While there is no statutory severance requirement in Germany, itis local best practices to offer a severance after an employee has been with the company for 6 months to mitigate litigation risk. deel.Notice Period To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country. Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you The minimum statutory notice period for employees is four weeks prior to either the 18th or the last day of the next month. The length will depend on how long the employee to be terminated has been working for the company. if the employee has worked for the company for: Length of Employment Notice Period 4 weeks notice prior to Up to 2 years either the 18th or the last day of the next month 1-month notice prior to the Between 2 - 4 year: jexweenn 2 youl last day of the next month 2 months’ notice prior to the Between 5 - 7 year: etween $7 years last day of the next month 3 months’ notice prior to the Between 8 - 9 years jetween 8-9 years last day of the next month 4 months' notice prior to the Between 10 - 11 year: vetween yours last day of the next month 5 months’ notice prior to the Between 12 - 14 year: etween yours last day of the next month 6 months’ notice prior to the Between 15 - 19 year: etween yes last day of the next month 7 months’ notice prior to the 20+ year: oe last day of the next month deel.The parties may agree to set the 2 months notice, however, if the employee exceeds 7 years with the same employer, the notice period will be 3 months Statutory Time Off e Off Public Holidays Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) a year. Part-time employees working less than a five day work week get leave on a pro-rata, PTO accrues monthly at 1.67 days per full month of employment. Germany celebrates nine national holidays and up to eight regional holidays based on the location of the employee National public holidays include: + New Year's Day + Good Friday * Easter Monday = Labor Day * Ascension Day * Whit Monday * German Unity Day + Christmas Day * Second Day of Christmas Employee Agreement Details & Conditions Contracts must be in English or German and can be bilingual. They must be in writing and signed by both parties A contract must include: + Name (both parties) + Address (both parties) * Start date * End date (if applicable) + Place of work + Job description * Salary (including all supplements) + Payment date + Working hours * Duration of annual holidays * Notice periods deelProbation Period Employees hired using Deel have a probation period of 90 days, which you can extend up to 180 days. As of January 2022, it's Deel company policy to include probation periods in all employment contracts moving forward. Probation periods help an employer and the employee ensure they're a hiring match, allowing a company to quickly decide if it's a fit or the employee to see if the job aligns with their career goals. Onboarding Timeline & Requirements Onboarding takes up to 6 business days after SOW signing ‘Compliance Documents + Health insurance: membership certificate + Passport / ID + Proof of employment eligibility Employer Cost Cost Breakdown The employer cost is generally estimated at 22.33% of the employee salary. Cost Type Amount Retirement 930% Health insurance 790% Unemployment security 120% deel.Cost Type (cont'd) Amount (cont'd) Long term insurance fee 1.53% Accident security 2.0% Maternity 1.0% Some employer costs have limits, therefore the percentage will vary. [ ) es Estimate Employer Cost Management Fee Learn how Deel can help you grow your Tete Rss TY hire, pay and manage contractors and employees in 150 Cee ee eee h local lov ences Book a demo at www.deel.com/request-a-demo