Germany
VerifiedKey Figures
Income Tax Range
0%–45%
Tax year 2025
Employer Contribution Rate
9.3% + 7.3% + 1.3% + 1.7%
On gross salary
Employee SS Rate
9.3% + 7.3% + 1.3% + 1.7%
Deducted from gross
Minimum Wage
€13
Per hour
Income Tax Brackets
Tax year 2025
| Bracket | Income Range | Rate |
|---|---|---|
| Grundfreibetrag (Basic Allowance) | €0 — €12,096 | 0% |
| Progressionszone 1 (14% to 24%) | €12,096 — €17,443 | 14% |
| Progressionszone 2 (24% to 42%) | €17,443 — €68,480 | 24% |
| Spitzensteuersatz (Top Rate) | €68,480 — €277,825 | 42% |
| Reichensteuersatz (Wealth Rate) | €277,825 — and above | 45% |
Social Security Contributions
Employee and employer contribution rates
Employee Contributions
Rentenversicherung (Pension)
Capped at €8,426
Krankenversicherung (Health Insurance)
Arbeitslosenversicherung (Unemployment)
Pflegeversicherung (Nursing Care)
Employer Contributions
Rentenversicherung (Pension)
Capped at €8,426
Krankenversicherung (Health Insurance)
Arbeitslosenversicherung (Unemployment)
Pflegeversicherung (Nursing Care)
Employment Rules Summary
Key obligations for employers in Germany
Minimum Wage
€13 per hour
Annual Leave
20 days
Sick Leave
42 days
Notice Period
4 days
Probation Period
6 days
Maternity Leave
14 weeks
Paternity Leave
—
Overtime Rate
1.25× standard rate
Payroll Frequency
Monthly
13th Month Pay
Not required
Health Insurance Schemes
Employer obligations in Germany
Gesetzliche Krankenversicherung (GKV)
PublicMandatory statutory health insurance for employees earning below the annual income threshold. Employer pays 7.3% of gross salary up to the contribution ceiling (Beitragsbemessungsgrenze: EUR 62,100/year in 2024). Employee pays equal 7.3% plus half of the additional supplementary contribution (Zusatzbeitrag, averaging ~1.7% in 2024).
Employer
7.3%
Private Krankenversicherung (PKV)
Private — OptionalPrivate health insurance for high earners and civil servants who opt out of GKV. Employer must contribute up to 50% of the PKV premium, capped at the maximum GKV employer contribution (EUR 421.76/month in 2024). Premiums are risk-based and generally offer faster specialist access and private hospital rooms.
Employer
—
Official Sources
Government authorities for Germany employment and tax
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Germany - Estimates only
Minimum wage: €13 / hour
Estimates only - Not professional tax advice
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Data Disclaimer
All data is sourced from official government publications and updated monthly. This is for reference only and does not constitute professional tax or legal advice. Always verify with a qualified local advisor.
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