Hiring in Germany through an Employer of Record
A German employer pays half of each social insurance contribution. These are the employer halves for the three biggest, as published by Techniker Krankenkasse, a statutory health insurer, because the federal pages give only the totals.
On top of salary, the employer pays
- 9.3% Pension insurance
- 7.3% Health insurance, general rate
- 1.3% Unemployment insurance
What the employer pays on top of salary in Germany
- Pension insurance: 9.3 percent of gross pay, the employer half.
- Health insurance, general rate: 7.3 percent of gross pay, the employer half.
- Unemployment insurance: 1.3 percent of gross pay, the employer half.
Each health fund also charges its own top-up, shared with the employee, and long-term care insurance depends on whether the employee has children; both are left out, along with accident insurance and small levies. All three rates stop at yearly pay ceilings, so the totals run high for well paid staff.
Yearly cost of one employee in Germany, by vendor
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM $599, Deel $599, G-P $599, Multiplier $459, Oyster $699, RemoFirst $199, Remote $699, Skuad $199, Velocity Global (Pebl) $399. Not published: Rippling.
Where these numbers come from
- Unemployment insurance on tk.de read
- Each vendor's own pricing page, linked from its name above.