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Labor Laws in Germany

  • Annual Leave: 25-30 days
  • Maternity Leave: 14 weeks
  • Public Holidays: 9
  • Workweek: 40 hours per week.

Income Tax in Germany

Income Tax is progressive with rates ranging from 0 - 45%.

Value Added Tax

The standard VAT rate is 19%.

Social Security in Germany

People employed in Germany have to contribute to four principal social security schemes.

The contributions are in general paid half by the employer and half by the employee. The following social security contributions are levied on employment income.

  • Pension Insurance
  • Health Insurance
  • Unemployment Insurance
  • Long-term Care Insurance
  • Work Accident Scheme
  • Insolvency Contribution

Work accident scheme depends on the industrial sector and the accident risk; these contributions are borne by the employer. Insolvency contribution is only payable by the employer amounts to 0.09%.

Work Visas Germany

Here is the selection of work visas available for foreigners to work in Germany:

  • EU Blue Card:This visa is for highly qualified professionals, especially those with a university degree. The minimum salary requirement has been lowered to €43,800 per year. IT specialists can qualify based on professional experience instead of a degree. The Blue Card is valid for up to four years or the duration of the employment contract.
  • Opportunity Card:Launched on June 1, 2024, this points-based system allows foreign nationals with vocational experience or university education to seek employment in Germany. Applicants need to score at least six points based on criteria like qualifications, work experience, language skills, and connections to Germany. The card permits casual work for up to 20 hours a week while job hunting.
  • Employment Visa:This visa is for non-EU nationals with a concrete job offer in Germany. It is initially valid for two years and can be extended. This category includes highly qualified individuals, intra-corporate transferees, and those with vocational qualifications recognized in Germany (Germany Visa).
  • Jobseeker Visa:This visa allows individuals to stay in Germany for up to six months to find a job. It requires proof of vocational training or a university degree and sufficient funds to cover the stay.

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