Countries/Germany/In-country employment
Europe · In-country employment
In-country employment in Germany
Germany is often a first EU industrial or commercial seat: a country manager, a plant office, or a technical hire who must start before a GmbH exists.
Works councils, collective agreements, and dismissal protection change how you manage the person — not only how you pay them.
Plan an in-country hire- ✓
German employment contract — The person is employed under the BGB and the relevant labour statutes, not as an unpaid visitor.
- ✓
You still manage — Your managers set the work. We run the contract, social-insurance registration, and payroll.
- ✓
No GmbH first — Start the hire before you incorporate. Convert later if you open your own entity.
Statutory stack
What sits on top of wages
Employer social insurance is a stack of statutory rates on capped assessment bases — not a salary survey.
| Item | 2026 rule |
|---|---|
| Employer social insurance | About 21% of gross on the relevant ceilings (pension 9.3%, health 7.3% plus half the Zusatzbeitrag, care 1.8%, unemployment 1.3%) |
| Accident insurance (UV) | Employer-only; rate depends on Berufsgenossenschaft and risk class |
| 2026 assessment ceilings | Pension / unemployment €8,450 / month; health / care €5,812.50 / month |
| Statutory minimum wage | €13.90 gross per hour from 1 January 2026 |
| 13th month | Not a national statute; often set by Tarifvertrag or the contract |
Role salary ranges are not on this page. Open the 2026 salary guide when those figures are published.
Choose a path
In-country employment vs incorporating
Incorporating a GmbH is the usual long-term structure. In-country employment is the path for a first seat that should not wait on company setup.
| In-country employment | Your own entity | |
|---|---|---|
| When to use it | A first hire, a plant office, or a bridge seat before the GmbH exists. | When you want your own GmbH or branch as the employer. |
| Who employs | A licensed local employer holds the contract. Your managers direct the work. | Your German company employs and remits Gesamtsozialversicherungsbeitrag in its own name. |
| Works council | If a Betriebsrat exists at the employing establishment, co-determination still applies to the hire's workplace. | Your own establishment may later elect a works council once headcount and request thresholds are met. |
Onboarding
From briefing to first payday
Social-insurance registration and contract documentation set the calendar — not the search.
01
Briefing
Place of work, role, Tarifbindung if any, and whether this is a first hire.
02
Contract
Written terms meeting the Nachweisgesetz: pay, hours, leave, notice, and probation.
03
Registrations
Health-insurer registration as Einzugsstelle, accident insurance, and Lohnsteuer deduction.
04
First payday
Monthly payroll with employer and employee social-insurance shares.
05
Convert or close
Move the person onto your GmbH, or terminate under KSchG and contractual notice.
Compliance
Five points that change the hire
01
Dismissal protection is not at-will
The Kündigungsschutzgesetz generally applies after six months' service if the establishment regularly employs more than ten employees. Budget a lawful ground, not a handshake exit.
02
Works council
Hiring, grading, and overtime can require Betriebsrat involvement where a council exists. Do not treat Germany as a manager-only jurisdiction.
03
Minimum wage is hourly
€13.90 gross per hour from 1 January 2026. Sector collective agreements often sit higher. Mini-job earnings cap is €603 / month in 2026.
04
Written essential terms
The Nachweisgesetz requires the core terms in writing. A one-page offer copied from another EU country is not enough.
05
Work authorisation for non-EU hires
EU/EEA/Swiss nationals do not need a work permit. Others need the correct residence title before they start.
Questions
FAQ
- Can a foreign company hire in Germany without a GmbH?
- Not on its own German payroll without a local employing vehicle. In-country employment puts the person on a licensed local employer's contract while your managers direct the work.
- What is the 2026 statutory minimum wage?
- €13.90 gross per hour from 1 January 2026. A further rise to €14.60 is scheduled for 1 January 2027. Collective agreements may set a higher floor.
- How much should we add on top of gross pay?
- Employer social insurance is typically around 21% of gross up to the 2026 ceilings, plus accident insurance and statutory Umlagen. That is not a salary survey.
- Can we dismiss without cause?
- Not once Kündigungsschutz applies. Plan notice, social selection where required, and a documented ground before you hire.
Labour-law detail for Germany sits on the hiring guide.
Other markets
Other in-country employment 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 — statutory minimum wage €13.90 from 1 January 2026
- Sozialgesetzbuch — contribution rates and 2026 Beitragsbemessungsgrenzen
- Kündigungsschutzgesetz; Nachweisgesetz; BetrVG
Plan an in-country hire in Germany
Tell us the city, the role, and when they need to start.