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Federal Republic of Germany
Berlin
82.9 million
Euro
.de
+49
Euro
Germany celebrates nine national public holidays as well as additional public holidays that vary by state:
Personal Income Tax Rates |
||||
Taxable Income Range for Single Taxpayers (EUR) |
Taxable Income Range for Married Taxpayers (EUR) |
Tax Rate (%) |
||
Over |
Not Over |
Over |
Not Over |
|
0 |
9,408 |
0 |
18,816 |
0 |
9,408 |
57,051 |
18,816 |
114,102 |
14* |
57,051 |
270,500 |
114,102 |
541,000 |
42 |
270,500 |
And above |
541,000 |
And above |
45 |
Note: - * Geometrically progressive rates start at 14% and rise to 42%.
Alimony Payments
Charitable contributions
Childcare expenses
Education expenses
Social security contributions
Health insurance and long-term care contributions
Unemployment insurance contributions
Pension scheme contributions
Mortgage deduction
The allowances shown below are deductible in computing taxable income.
Per Year/ Per Taxpayer |
EUR |
Employee's allowance |
1000 |
Investor's allowance (for interest, dividends, and capital gains) |
801 |
Social security allowance |
Variable |
Lump sum special expense deduction |
36 |
Child allowance - per child registered in Germany and per parent |
3,906 |
Type of Visa |
Description |
Job Seeker Visa |
Documents
Validity
Eligibility
|
Working Visa |
|
Business Visa |
VAT |
|
General Rate |
19% |
Reduced Rate |
7%* |
*Reduced rate applies to food, books, hotel accommodation, cultural services and other goods and services. |
Payment/Income |
Withholding Tax |
Investment Income |
|
Domestic Dividend Payments |
|
Dividend Paid to Connected Companies in EU countries |
|
Dividends Paid to Non-Resident Companies |
|
Patent Royalties and Copyright Royalties Paid to Non-Resident Companies |
|
Statutory Benefits |
Pension Insurance |
Health Insurance |
Nursing Care |
Unemployment Insurance |
Occupational Accidents Insurance |
Retirement Pensions |
Disability Pensions |
Survivors’ Pensions |
Paid Vacation and Holidays |
Sick Pay |
Maternity Benefits |
Christmas Bonus% |
Based on one month bonus (December - not compulsory but 80% get this bonus) |
Christmas Bonus Over Vacations % |
0% |
Severance per Year % |
No statutory requirement |
Vacations % | Employees are entitled to 24 days of annual leave (6.59% of annual salary) |
Notice % |
Employees are entitled to 20 days of notice period for one year of service or more (5.49%) |
Christmas Bonus Over Notifications% | 0% |
Vacations Plus% | 0% |
Total percentage of Salary (yearly) | The total employment accruals as a percentage of salary per anum are equal to 20.41% |
Pension insurance and unemployment ceiling | €85,200.00 |
Health insurance and long term care ceiling | €58,050.00 |
Pension insurance | 9.30% |
Unemployment insurance | 1.20% |
Health Insurance Contribution | 7.30% |
long term care insurance | 1.53% |
insolvency contribution | 0.12% |
Sick leave | 12.33% |
Maternity | 14 weeks |
Christmas Bonus | 8.33% |
Vacations | 8.22% |
Description | The following social security contributions (as of January 2021) are levied on employment income. Employer contributions are generally tax-free. Pension insurance: 18.6%, up to an income ceiling of EUR 85,200 annually (EUR 80,400 in the new federal states). A contribution of 9.3% each is borne by both the employer and the employee. Unemployment insurance: 2.4%, up to an income ceiling of EUR 85,200 annually (EUR 80,400 in the new federal states). A contribution of 1.2% each is borne by both the employer and the employee. Health insurance: 14.6%, up to an income ceiling of EUR 58,050 annually. A contribution of 7.3% each is borne by both the employer and the employee. Long-term care insurance: 3.05% (3.3% for childless individuals, beginning with age 23), up to an income ceiling of EUR 58,050 annually. The contribution is borne 1.525% by the employer and 1.525% (1.775% for childless individuals, beginning with age 23) by the employee. Work accident scheme depends on the industrial sector and the accident risk; these contributions are borne by the employer. Insolvency contribution only payable by the employer amounts to 0.12%, up to the income ceiling of EUR 85,200 annually (EUR 80,400 in the new federal states). An individual can apply for private health and long-term care insurance if certain conditions are met. Self-employed individuals generally do not have to pay mandatory social security contributions. |
Employment Accruals | ||
Annual Leave | Employees are entitled to a minimum of 24 days leave, | This equals 6.57% (24/365 days) of annual income |
Maternity Leave | Mothers are entitled to 6 weeks leave at full pay prior to their child's birth, and eight weeks at full pay after birth. In the case of premature or multiple births, 12 weeks paid leave is permitted. After six weeks the insurance provider will cover the fees. | This equals 11.5% (6/52 weeks) of annual income |
Parental Leave | Parental leave is leave of 36 months till the child turns three. This leave can be divided as chosen between the parents. The eight weeks of maternity leave is counted towards this. During parental leave, parents can choose to work part-time up to 30 hours per week. | This equals 300% (36/12 months) of annual income |
Sick Leave | Employees are entitled to at least six weeks of sick leave at full salary if the employee can present a medical certificate from their doctor. | This equals 11.5% (6/52 weeks) of annual income |
Severance | Under the Employment Protection Act, an individual employee on permanent contract is entitled to severance pay if the employer indicates in the notice of dismissal that the dismissal is based on operational grounds and offers compensation or if the worker does not file a complaint against the dismissal within three weeks’ time. In this case, severance payments of half a month’s wage for each year of the employment relationship can be filed. The maximum payment stipulated by law equals to 12 months' salary. |
Maximum pay equals 12 months salary |
Social Security | Employers must make the following contributions: - Pension Insurance 9.3%; Health Insurance 7.3%; Unemployment Insurance 1.25%; Long Term Care Insurance 1.525% | This equals 19.37% of annual income |