Written essential terms
The Nachweisgesetz requires the core terms in writing: job, pay, hours, leave, notice, and probation. A short English offer is not enough.
Countries/Germany/Hiring guide
Europe · Hiring guide · 2026
Hiring in Germany: labour law and payroll
This page is the labour-law and payroll stack for multinational employers hiring in Germany. It is not a salary survey.
In-country employment is how you run this stack without a GmbH.
To hire without incorporating first, use in-country employment in Germany.
Contracts
Contracts and probation
Probation
Probation is commonly up to six months. Notice during probation is shorter, but it still has to be written into the contract.
Tarifvertrag
If the employer is bound by a collective agreement, pay scales, 13th-month rules, and working time follow that agreement — not a HQ template.
Hours
Working time and overtime
Hours
The Working Time Act generally caps working time at 8 hours a day, extendable to 10 if the average over six months does not exceed 8. Sunday work is restricted.
Overtime
There is no single national overtime premium for all staff. Premiums come from the contract, a Tarifvertrag, or a works agreement. Write the rule down.
Leave
Statutory paid leave is at least 20 working days on a 5-day week (24 on a 6-day week). Many contracts and Tarifverträge grant 30.
Wage floor
Minimum wage, 2026
The statutory floor is hourly. Employer social insurance is a stacked percentage on capped bases. These are not market salaries.
| Rule | Figure |
|---|---|
| Statutory minimum wage | €13.90 gross per hour from 1 January 2026 (€14.60 from 1 January 2027) |
| Mini-job cap 2026 | €603 / month |
| Employer social insurance | About 21% of gross on 2026 ceilings (pension / unemployment €8,450; health / care €5,812.50), plus accident insurance |
| 13th month | Not a national statute; often Tarifvertrag or contract |
Sector collective agreements frequently sit above €13.90. The statutory rate is a floor, not a plant wage. Mini-jobs are a separate contribution regime — do not use them for a full-time country manager.
Exit
Terminating and offboarding
Kündigungsschutz
After six months' service, if the establishment regularly employs more than ten employees, ordinary dismissal needs a socially justified ground (person, conduct, or operational).
Notice
Statutory notice grows with service. Notice must generally reach the employee in writing (wet ink). Email is a classic defect.
Works council
Where a Betriebsrat exists, it must be heard before dismissal. Skipping that hearing can void the termination.
Questions
FAQ
- What is the 2026 minimum wage in Germany?
- €13.90 gross per hour from 1 January 2026. Collective agreements may set a higher floor.
- How much is employer social insurance?
- Typically around 21% of gross up to the 2026 assessment ceilings, plus accident insurance and statutory Umlagen.
- Can we dismiss without cause?
- Not once the Kündigungsschutzgesetz applies. Plan a documented ground, statutory notice, and works-council hearing where a council exists.
- Is a 13th month required?
- Not by a national statute. Check the Tarifvertrag and the contract.
Other markets
Other hiring guide pages
Reviewed 11 September 2026
This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.
Sources
- Fünfte Mindestlohnanpassungsverordnung — €13.90 from 1 January 2026
- SGB — 2026 contribution rates and Beitragsbemessungsgrenzen
- KSchG; NachwG; ArbZG; BUrlG; BetrVG
Hire in Germany
Tell us the city, the role, and whether this is a local contract or a search.