Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Euro (€, EUR)

Payroll Frequency


Public Holidays

9 days

Employer Taxes

Around 20%

Cost of Living Index

$$$$ (26 of 140, Q2 2023)

Statutory Leave

Up to 24 days

Sick Leave

6 weeks

Maternity Leave

14 weeks

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

€12.41 per hour (as of 2024)

Overtime Pay

Working hours are typically 8 hours per day, 40 hours per week. Monday through Friday is the standard workweek. Additional overtime pay is not legally mandated. Overtime can be compensated in either additional paid time off or money, at the discretion of the employer. Overtime is defined as hours worked outside of normal working hours. Employees can work up to 2 hours of overtime per day and 12 hours per week. Employees are paid the same hourly rate for extra hours worked as they are for their regular salary. Employees must notify their employers four days in advance of any planned overtime.

Additional Pay

There is no additional payment detail for Germany.

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 9.30% - Pension
  • 7.3% - Health Insurance
  • 1.525% - Nursing Care Insurance
  • 1.25% - Unemployment Insurance
  • 1.18% - Accident Insurance (on average)

Employee Costs & Taxes

  • 9.30% - Pension
  • 7.30% - Health Insurance
  • 1.525% - Nursing Care Insurance
  • 1.25% - Unemployment Insurance
  • 0 - 45% - Income Tax

Employment Information

Termination Process

Employers in Germany may provide any number of reasons for terminating an employee. Any dismissal from the employer's end must be justified if the employee has been working for over six months. Here are possible reasons. 

  • Person-related: long-term illness; termination with the employee's consent via a termination agreement
  • Conduct-related: repeated violations of employment terms after prior warning or serious misconduct
  • Operation-related: the company's closure or economic downturn

Notice period

An employer's statutory notice period is determined by the length of employment, with a minimum of four weeks for those employed for less than nine months and up to seven months for those employed for more than twenty years.

Probation Period

A probationary period can last up to 6 months. The statutory notice period for the start of a new employment relationship is two weeks.

Except as otherwise provided in other applicable regulations, the applicable statutory notice period can be reduced to a minimum of two weeks during the probationary period (e.g. a collective bargaining agreement). During the probationary period, the employer does not need a reason to fire the employee. A probationary period termination is only ineffective if it is immoral or contrary to faith.

Severance Details

In Germany, there is no legal entitlement to severance pay.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo