All About Offering Employee Benefits in Germany
Hire the best talent in Germany with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in Germany
In Germany, offering competitive benefits and compensation packages can help you stand out and recruit top talent. Justworks’ employer of record (EOR) can help you access the required localized benefits and understand which perks employers need to attract top talent. Here’s a closer look at benefits requirements in Germany.
Social Security
In Germany, employer deductions for social security contributions depend on employees’ gross annual earnings. Different percentages are earmarked for specific funds. Employees pay 22-31% of their salary into social security. Their social security contributions cover unemployment insurance, pension, health insurance, nursing care insurance, and accident insurance.
Time Off
German employees are entitled to at least 20 paid days of vacation time. Other statutory leave includes paid holidays, sick leave, maternity leave, and parental leave.
Offer Competitive Benefits
Companies looking to hire in Germany can offer additional benefits to compete for and retain the best talent. Consider including these additional perks for a happier and healthier team.
Employer-Sponsored Health Benefits
Many businesses, especially tech startups, give their team members a gym allowance or reimburse fitness expenses. This is an attractive benefit because it encourages a healthy lifestyle and helps them maintain their well-being.
Transportation Expenses
In German cities, many commuters ride bikes to work. Giving employees a company bike to go to and from work is a great incentive and promotes eco-friendly transportation. For employees who live or work in rural areas, offering a company shuttle or car can help ease the burden of commuting.
Remote or Flexible Work
Some industries, like finance and tech, offer employees the ability to work from home. This allows for more flexibility while reducing the environmental and financial cost of commuting. Germany has five-day work weeks, but some companies allow employees to switch to a four-day work week as a bonus incentive.
Ready to Offer Benefits in Germany?
Justworks EOR makes building your global team seamless by helping you access localized benefits to attract top talent in Germany. Simplify international hiring today.
