Social security
in Germany.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES German / English

PAYROLL TAX 20.66%

PAYROLL CYCLE Monthly

TIME TO HIRE 48 hours

Get Started

Horizons-owned entity with local country experts in Seoul.

We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

Hire and pay talents
with Horizons in
180+ countries

Get started

Germany

Social security in Germany – Overview

Germany’s social security program is considered developed, offering universal healthcare, a pension program, unemployment, and more. Both employees and employers much contribute to social security in Germany, with each contribution a percentage of the employee’s gross salary at each pay period. Read below for details about Germany’s social security program.

What does the social security system in Germany cover?

In Germany, social security covers things like pension, healthcare coverage, unemployment insurance, and so on. Accident insurance is also covered, however the sole burden to pay into this is by the employers.

What are the mandatory contributions for employees to social security in Germany?

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:

9.3% for pension insurance
1.2% for unemployment insurance
7.3% for health insurance
1.5% for long-term care insurance

What are the mandatory contributions for employers to social security in Germany?

Employer constitutions in Germany can reach around 19% of the employee’s salary.

A typical breakdown of employer contributions is:

9.3% for pension insurance
1.2% for unemployment insurance
7.3% for health insurance
1.5% for long-term care insurance

How do mandatory contributions compare to the surrounding countries?

Contributions in Germany about the average for Europe. Some surrounding countries are more, or less. For example, in France, the minimum mandatory contribution is 42% of the employee’s salary. Whereas in a European countries like Portugal, 11% in the norm.

Hiring in Germany, Made Easy

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.

FAQs

How much do employers need to contribute to social security in Germany?

In Germany, social security contributions reach around 19% of the salary.

What situations does social security cover for employees in Germany?

In Germany, social security will cover things such as pension, healthcare coverage, unemployment insurance and long-term care insurance.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)