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In Germany, healthcare is publicly funded and part of mandatory contributions. However, many higher level paying jobs will offer private healthcare options for the employees.
Pensions in Germany are funded by both the employee and employer. 9.3% is the legal minimum that an employer must match if an employee wants to contribute that much. However, to attract better talent, it is customary to offer higher retirement pension match programs.
Disability benefits are paid in the case of disability impacting an employee’s ability to work, with payments depending on the nature of the disability. In Germany, the country’s social security system will cover disability. Disability benefits are covered under the pension insurance contribution.
People who are unemployed in Germany can receive unemployment benefits from the Government. If you are terminating an employee and you owe them a severance payment, for the time they have that severance payment they are not allowed to collect unemployment payments (as long as the severance package is more than the country’s unemployment benefits).
Individuals who have been employed for at least 12 months within the last 30 months are entitled to income protection insurance (Arbeitslosengeld) which is much higher than the general unemployment benefit.
Hire borderless talent with Horizons
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.
Employee benefits that are mandatory in Germany are:
Horizons can cover employee benefits you want to offer in Germany. We will ensure all mandatory benefits are offered, along with seeing if you would like to offer additional benefits to attract higher skilled workers (i.e. health care allowance, car allowance, working from home allowance, health & fitness allowance)
