The Hardest Market ยท Germany
Germany's HR data
The rules and costs of employing people in Germany (Berlin), from official sources, in English and Japanese.
27.7%women in management (2024, ILO)
1.21รemployer's total cost on โฌ70,000 a year, as a multiple of salary
10public holidays (2026)
Employment rules
| Statutory annual leave | 20 days (5-day week); 25-30 common |
|---|---|
| Public holidays (2026) | 10 days |
| Notice of dismissal | 4 weeks, rising to 7 months with service |
| Severance required by law | None by law; 0.5 month/year offer option (ยง1a KSchG) |
| Typical negotiated exit | Settlements often 0.5-1 month's pay per year of service |
| Probation | Up to 6 months, 2 weeks' notice |
| Working hours | 8 h/day (max 10), 48 h/week |
| How hard is dismissal? | Hard: social justification after 6 months |
Employer contributions
| Pension insurance | 9.3% |
|---|---|
| Unemployment insurance | 1.3% |
| Health insurance | 8.75% |
| Long-term care insurance | 1.8% |
| Insolvency benefit levy (U3) | 0.15% |
Employee contributions
| Pension insurance | 9.3% |
|---|---|
| Unemployment insurance | 1.3% |
| Health insurance | 8.45% |
| Health insurance (sick-pay share) | 0.3% |
| Long-term care insurance | 2.4% |
Take-home pay and employer cost by annual salary
| Annual salary | Employee contributions | Income tax | Take-home | Employer cost |
|---|---|---|---|---|
| โฌ50,000 | โฌ10,875 | โฌ6,788 | โฌ32,337 | โฌ60,650 |
| โฌ70,000 | โฌ15,197 | โฌ12,220 | โฌ42,583 | โฌ84,884 |
| โฌ90,000 | โฌ17,317 | โฌ19,438 | โฌ53,245 | โฌ107,034 |
| โฌ120,000 | โฌ18,525 | โฌ32,931 | โฌ68,544 | โฌ138,259 |
Employee in Berlin, German tax resident and a local national (no expatriate regime), aged 30, single and childless (tax class I), not a church member, salary only paid evenly as monthly pay (no bonus), calendar year 2026. Statutory health insurance (GKV) at the official average additional contribution rate, statutory pension, unemployment and long-term-care insurance. Tax shown is the wage tax (Lohnsteuer) withheld under the official 2026 programme flowchart, with the standard employee allowances; a year-end tax return could differ slightly.
Sources: [1] [2] [3] [4] [5] [6] Checked 2026-11-07; 2026 rates.