German Employer Rates and Thresholds 2026

Social security contributions are split between employer and employee, each paying roughly half. They are charged on gross pay up to an annual ceiling (Beitragsbemessungsgrenze), above which no further contributions are due. In 2026 the ceilings are the same in east and west Germany.

Because the contributions stop at the ceilings, they fall as a share of higher salaries. Employer amounts for 2026, including the insolvency levy:

The statutory minimum wage is €13.90 gross an hour from 1 January 2026, rising to €14.60 on 1 January 2027. For a full-time employee that is about €2,409 a month in 2026.

• At least 24 working days a year, counted on a six-day week (Monday to Saturday). That is four weeks, or 20 days for an employee who works five days a week.
• Working time may not exceed 8 hours per working day (Monday to Saturday). It can be extended to 10 hours only if the average over six calendar months or 24 weeks stays at 8 hours a day.
• An employee unable to work through illness, without their own fault, is entitled to continued pay from the employer for up to six weeks. The entitlement starts after four weeks of uninterrupted employment.
• Each parent can take parental leave (Elternzeit) until the child's third birthday, and up to 24 months of it can be saved for between the third and eighth birthdays. The entitlement applies for each child and can't be excluded or limited by contract.

A probation period can be agreed for up to six months, during which either side can terminate with two weeks' notice.

The basic notice period is four weeks to the 15th or the end of a calendar month. For dismissal by the employer it rises with service, to the end of a calendar month: 1 month after 2 years, 2 months after 5, 3 after 8, 4 after 10, 5 after 12, 6 after 15 and 7 months after 20 years.

• Protection against dismissal: After six months' service, a dismissal is invalid unless it is socially justified: by reasons relating to the employee's person or conduct, or by urgent operational requirements. This protection applies in businesses with more than 10 employees (more than 5 for employees hired before 2004), counting part-timers pro rata.
• Fixed-term contracts: A fixed-term contract needs an objective reason (such as a temporary need, cover for another employee or a trial), except that a contract with a new employee can be fixed-term without a reason for up to two years in total, with up to three extensions. In a company's first four years, the limit is four years. The fixed term must be agreed in writing to be valid.
• EOR and employee leasing: An EOR arrangement is usually treated as employee leasing. The provider needs a licence, and the same worker can generally be placed with the same client for up to 18 months. See AÜG and EOR in Germany.