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SALARY PAYMENT IN Euro (EUR, €)
CONTRACT LANGUAGES German / English
PAYROLL TAX 20.66%
PAYROLL CYCLE Monthly
TIME TO HIRE 48 hours
Hire and pay talents
with Horizons in
180+ countries
Germany
The corporate tax rate in Germany is 15%, but additional charges such as a solidarity surcharge and trade tax make the total level of contribution around 30%.
Horizons’ Germany Employer of Record & PEO can provide assistance to your business as you navigate the complicated tax laws in the country.
Germany has a progressive tax rate system for workers. The average employee tax rate in Germany ranges from 0% to 45% based on income level.
| Taxable Income (EUR) | Tax rate 2023 |
|---|---|
| 0 – 10.908 | 0% |
| 10.909 – 62.809 | 14% – 42% |
| 62.810 – 277.825 | 42% |
| 277.826 + | 45% |
Employer contributions in Germany can reach around 19% of the employee’s salary.
A typical breakdown of employer contributions is:
| Contribution item | Contribution rate |
|---|---|
| Pension Insurance | 9.3% |
| Unemployment Insurance | 1.2% |
| Health Insurance | 7.3% |
| Long-term Care Insurance | 1.5% |
Employee contributions in Germany can reach around 19% of the salary. And they are the same as the employer contributions
A typical breakdown of employee contributions is:
| Contribution item | Contribution rate |
|---|---|
| Pension Insurance | 9.3% |
| Unemployment Insurance | 1.2% |
| Health Insurance | 7.3% |
| Long-term Care Insurance | 1.5% |
Your business can easily hire employees in Germany without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The Tax Info Center (Steuerliches Info-Center – SIC) at the Federal Central Tax Office (Bundeszentralamt fur Steuern – BZSt) is the entity that provides tax information and works as the tax bureau of Germany.
In Germany, the payroll tax is called solidarity tax, and this is 5.5% of the employee’s salary.
Payroll tax in Germany is tax that comes out of the employee’s salary every pay check. The employer will withhold the correct amount on behalf of the employee.
Germany has a progressive tax rate system, meaning the more income someone makes, the more they will be taxed. In Germany the tax rate for employees Is between 0% and 45%.
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Singapore 068895
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Skalitzer Str. 85/86
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Austin, Texas 78704
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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