Employer of Record in Germany
Hire employees in Germany compliantly in days, not months. No entity setup, no compliance headaches. Just great talent, legally employed.
€599/month per employee · AUG-licensed · DACH compliance guaranteed
Trusted by companies expanding into DACH
Why hire in Germany?
Access Europe's largest economy and deepest talent pool.
Europe's economic powerhouse
Access the EU's largest economy with EUR 4.2T GDP. Germany is home to world-leading automotive, machinery, tech, and pharmaceutical industries.
Deep talent pool
43+ million skilled workers. Top universities, strong engineering culture, and high English proficiency in business settings.
Gateway to Europe
Central location, excellent infrastructure, and EU membership make Germany the ideal base for European expansion.
Employment in Germany at a glance
Key facts every employer needs to know.
Minimum Wage
EUR 13.50/hr
Rising to EUR 14.20 Oct 2026
Paid Vacation
20-30 days
20 minimum, most offer 25-30
Notice Period
4 weeks - 7 months
Depends on tenure
Sick Leave
6 weeks full pay
Then insurance covers 70%
Probation Period
Up to 6 months
2-week notice during
Social Contributions
~21% employer
Pension, health, unemployment
German compliance is complex
Let us handle the challenges so you can focus on your business.
Works Council Requirements
Companies with 5+ employees may need to establish a works council. Non-compliance can invalidate employment decisions.
Virmondo EOR guides you through works council requirements and handles all communication compliantly.
Strict Termination Protection
After 6 months, employees have strong dismissal protection. Improper termination can result in costly wrongful dismissal claims.
We manage compliant offboarding procedures and documentation to protect both parties.
Contractor Misclassification
Fines up to EUR 500,000 and personal liability for executives. German authorities actively audit misclassification.
Our EOR model ensures proper employment status from day one. No risk of misclassification.
Complex Social Security
Employers must contribute ~21% to pension, health, unemployment, and nursing care insurance. Errors trigger penalties.
We handle all social security registration, contributions, and reporting automatically.
Entity setup vs. Virmondo EOR
Compare the cost and complexity of traditional entity setup against our EOR solution.
| Factor | Entity Setup | Virmondo EOR |
|---|---|---|
| Time to hire | 6-12 weeks | 3-5 days |
| Setup cost | EUR 25,000+ | €0 |
| Monthly cost | EUR 3,000+ (accounting, legal, office) | €599/employee |
| Compliance risk | Full liability | Shared with Virmondo EOR |
| Flexibility | Committed presence | Scale up or down freely |
| Exit cost | Liquidation process | Simple contract end |
Time to hire
Entity Setup
6-12 weeks
Virmondo EOR
3-5 days
Setup cost
Entity Setup
EUR 25,000+
Virmondo EOR
€0
Monthly cost
Entity Setup
EUR 3,000+ (accounting, legal, office)
Virmondo EOR
€599/employee
Compliance risk
Entity Setup
Full liability
Virmondo EOR
Shared with Virmondo EOR
Flexibility
Entity Setup
Committed presence
Virmondo EOR
Scale up or down freely
Exit cost
Entity Setup
Liquidation process
Virmondo EOR
Simple contract end
How it works
From candidate to compliant employee in under a week.
Share your requirements
Day 1
Tell us about the role, location, and candidate. We'll provide a detailed employment cost breakdown within 24 hours.
We prepare the contract
Days 2-3
Our team drafts a compliant German employment contract tailored to your needs. You review and approve.
Onboard your employee
Days 4-5
Your new hire signs the contract. We handle registration, benefits enrollment, and compliance setup.
We manage everything
Ongoing
Payroll runs automatically. We handle taxes, benefits, compliance, and HR support ongoing. You focus on your business.
Share your requirements
Day 1
Tell us about the role, location, and candidate. We'll provide a detailed employment cost breakdown within 24 hours.
We prepare the contract
Days 2-3
Our team drafts a compliant German employment contract tailored to your needs. You review and approve.
Onboard your employee
Days 4-5
Your new hire signs the contract. We handle registration, benefits enrollment, and compliance setup.
We manage everything
Ongoing
Payroll runs automatically. We handle taxes, benefits, compliance, and HR support ongoing. You focus on your business.
What's included
Everything you need to employ in Germany, for €599/month per employee.
Employment
- Compliant German employment contracts
- Full-time and part-time arrangements
- Onboarding and offboarding management
- Employee handbook in German and English
Payroll
- Monthly salary processing
- Tax withholding and filing
- Payslips in German and English
- Year-end tax documentation
Benefits
- Statutory health insurance enrollment
- Pension contribution management
- Unemployment insurance
- Supplemental benefits options
Compliance
- Employment law compliance
- Data protection (GDPR/BDSG)
- Works council consultation support
- AUG license compliance
HR Support
- Employee relations support
- Leave management
- Performance documentation
- Termination guidance
Salary benchmarks in Germany
Annual salary ranges by role and experience level (2026 data).
| Role | Entry Level | Mid Level | Senior Level |
|---|---|---|---|
| Software Engineer | EUR 45,000 - 55,000 | EUR 55,000 - 75,000 | EUR 75,000 - 100,000 |
| DevOps Engineer | EUR 48,000 - 58,000 | EUR 58,000 - 78,000 | EUR 78,000 - 105,000 |
| Product Manager | EUR 50,000 - 60,000 | EUR 60,000 - 85,000 | EUR 85,000 - 120,000 |
| Data Scientist | EUR 50,000 - 62,000 | EUR 62,000 - 82,000 | EUR 82,000 - 110,000 |
| UX Designer | EUR 40,000 - 50,000 | EUR 50,000 - 68,000 | EUR 68,000 - 90,000 |
Software Engineer
Entry
EUR 45,000 - 55,000
Mid
EUR 55,000 - 75,000
Senior
EUR 75,000 - 100,000
DevOps Engineer
Entry
EUR 48,000 - 58,000
Mid
EUR 58,000 - 78,000
Senior
EUR 78,000 - 105,000
Product Manager
Entry
EUR 50,000 - 60,000
Mid
EUR 60,000 - 85,000
Senior
EUR 85,000 - 120,000
Data Scientist
Entry
EUR 50,000 - 62,000
Mid
EUR 62,000 - 82,000
Senior
EUR 82,000 - 110,000
UX Designer
Entry
EUR 40,000 - 50,000
Mid
EUR 50,000 - 68,000
Senior
EUR 68,000 - 90,000
Salary adjustments by city
+10-15%
Highest salaries, enterprise and automotive hub
+5-10%
Finance hub, banking and fintech premium
Baseline
Startup ecosystem, creative tech, diverse talent
-5%
Media and e-commerce, lower cost of living
-5%
Fashion, retail, telecommunications
The 18-month rule: What you need to know
Under German labor leasing law (AUG), employees hired through an EOR can only work for the same client company for up to 18 months. This is a legal requirement, not a Virmondo EOR policy.
3-month break
After 18 months, the employee takes a 3-month break from the client assignment. They can then be re-engaged for another 18-month period.
Entity setup
Virmondo EOR can assist with setting up a German GmbH to directly employ your team. We offer transition support to make this seamless.
Foreign employer registration
Register your existing foreign company as an employer in Germany. This allows direct employment without a German entity.
Role change
If the employee moves to a different role or department, the 18-month clock may reset. We advise on compliant approaches.
Virmondo EOR handles this for you
Virmondo EOR proactively tracks your 18-month timelines and initiates transition planning 6 months before the limit. You'll never be surprised.
Frequently asked questions
Everything you need to know about hiring in Germany.
Have a question we didn't answer?
Contact UsReady to hire in DACH?
Skip the entity setup.
Start building your team.
Hire your first DACH employee in weeks. We handle contracts, payroll, taxes, and compliance.
No commitment required. Free consultation to discuss your needs.