The salary and employment conditions in Germany: this is what you need to know

Although the minimum wage in Germany is slightly lower than in the Netherlands, the average gross monthly salary for full-time employees is € 3,975 slightly higher than in the Netherlands (€ 3,927). There are quite large regional differences. Salaries in southern Germany are generally higher than in the northeast.

You can negotiate your salary in Germany just like in the Netherlands. This can be done both at the starting salary and in the interim; Periodic wage increases are now also common in Germany. In Germany you also have various options to provide employees with gross-net benefits and premiums.

Germany has no legally required holiday pay. Some employers choose to pay a voluntary contribution ( Urlaubsgeld) . This amount is usually one month’s salary.

Germany does not have a standard 13th and/or 14th month, but here too some employers choose to give an end-of-year bonus ( Weihnachtsgeld) in November.

Depending on the position, many German employees will appreciate a number of secondary employment conditions, such as:

• a laptop and telephone
• a company car
• an expense allowance
• an allowance for a home workplace (including an allowance for electricity and internet costs)

In Germany, maternity leave ( Mutterschutz) starts 6 weeks before the expected date of birth. It lasts up to 8 (12 in twins) weeks after birth. From 2024 (at the earliest), fathers of newborns will be entitled to paternity leave ( Vaterschaftsurlaub).

In addition, Germany has a fairly generous parental leave scheme, with both parents entitled to parental leave ( Elternzeit ). For example, employees can take up to 3 years of parental leave to care for their newborn child. They then receive compensation for part of that period that is paid by the state ( Elterngeld ). As an employer, you do not pay any contributions during this period. But you must ensure that your employee can return to the same or an equivalent position after the leave.

Employees can also choose to use the Elterngeld Plus scheme and work part-time.

The average working week in Germany is between 36 and 40 hours. While in the Netherlands employees with a 36-hour working week sometimes work 4 days of 9 hours, this is not possible in Germany. In Germany, employees are not allowed to work more than 8 hours per day (and 48 hours per week). This can only be extended to 10 hours per day if the employee does not work more than 8 hours per day on average within 24 weeks.

Overtime is usually compensated with time for time, but it can also be paid. We recommend including arrangements for this in the employment contract.

With a working week of 5 days per week, an employee in Germany is entitled to at least 20 statutory vacation days per year, just like in the Netherlands. In practice, most employees with a full-time appointment receive between 25 and 30 days of paid leave (excluding public holidays). Is an employee sick during a day of leave? Then the day of leave will not be deducted.

Just like in the Netherlands, Germany has a number of fixed national holidays per year. In addition, each federal state has a number of additional public holidays. Taken together, these are usually more than in the Netherlands.

In Germany, a statutory holiday is a mandatory day off, except in certain industries such as catering and healthcare. Shops are usually closed on public holidays.

Then briefly about social security: if your German employees work a large part of their working time (25% or more) in Germany, they must have social insurance in Germany. The contributions to these insurances are largely divided between employer and employee. For this you should count on a percentage of approximately 30% on top of the employee’s salary.