Employer of Record

Hire Germany with an Employer of Record

Hiring in Germany depends on the candidate's situation: one already based in Germany with work authorization; one relocating from China or another country; or an existing China-based employee temporarily assigned or posted to Germany. An employer-of-record arrangement alone does not grant work authorization; relocation and posting are assessed separately. PIO first confirms the exact role, candidate, and German workplace, then coordinates the agreed employment and payroll steps.

HR and finance team reviewing an Employer of Record hiring plan for Germany

What to plan for

Practical points to line up before you hire Germany.

Minimum Wage, Hours & Leave

Germany's general minimum wage is €13.90 gross/hour from 1 January 2026, rising to €14.60 from 1 January 2027 (some sectors set higher rates). Standard working time is up to 8 hours/day (extendable to 10 only if the average returns to 8 within 6 months), and statutory leave is 24 working days on a 6-day week — about 20 days on a typical 5-day week. PIO checks these baselines against the exact role and schedule before confirming an arrangement.

Source:Minimum pay under the Minimum Wage ActMinimum wage Q&AMiLoG §2 – Due date for minimum wageArbZG §3 – Working hoursBUrlG §3 – Duration of leave

Notice Periods You Can Plan Around

Germany's statutory baseline under BGB §622 is four weeks' notice to the 15th or the end of a calendar month, and employer-side notice periods lengthen as an employee's length of service grows. A valid collective agreement or a valid contract provision may modify the period that applies, and during an agreed probation period of up to six months, a two-week notice period can apply instead. Once an arrangement is confirmed, PIO factors these statutory timelines into offboarding planning.

Source:BGB §622 – Notice periods

Social Insurance & Contributions

In Germany, a standard employment relationship — including ordinary part-time work — is assessed for health, pension, unemployment, and long-term care insurance based on earnings and circumstances, and is not automatically a Minijob. Only work that stays within the statutory Minijob earnings limit, or meets the specific conditions for a short-term Minijob, follows the special Minijob treatment instead. Employers separately and solely fund statutory accident insurance as its own insurance branch. Once your specific arrangement is confirmed, PIO coordinates the applicable registrations and contributions.

Source:Social securityMinijob informationInsuring employees correctlyInformation for foreign companies

Work Authorization, Assignment & AÜG Check

The right setup depends on the case: a local German hire who already has work authorization, relocating a Chinese or other third-country candidate to Germany, or temporarily assigning or posting an existing China-based employee. An EOR arrangement doesn't itself grant work authorization — intra-company transfers, assignments, and postings each need their own separate assessment. Separately, if a role involves day-to-day integration into a customer's organization with that customer giving direct instructions — site, reporting line, daily direction — it may qualify as temporary agency work under the AÜG, which generally requires a permit. PIO reviews these factors for each specific case before confirming whether an arrangement is available.

Source:Temporary agency work permitEmploying workers and skilled professionals from abroad

What PIO helps coordinate / What you provide

What PIO helps coordinate

Once your hire is confirmed, here's what we help you coordinate.

  • Confirming country availability and the arrangement for your hire
  • Coordinating the information and documents needed for onboarding
  • Confirming how contract, payroll and statutory responsibilities are handled in your arrangement
  • Explaining the process for changes, leave and offboarding

What you provide

You stay in control of the decisions that are yours to make.

  • The role, compensation and any company-specific policies
  • Final approval on the offer and any changes to it
  • A point of contact for escalations during employment

How it works

A straightforward path from sign-up to your employee's first day.

  1. Step 1

    Tell us about the hire

    Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.

  2. Step 2

    We coordinate onboarding

    Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.

  3. Step 3

    Your employee starts

    You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.

Frequently asked questions

What is the minimum wage in Germany, and when must it be paid?

Germany's general statutory minimum wage is €13.90 gross per hour from 1 January 2026, rising to €14.60 from 1 January 2027 (some sectors set higher minimums). Under MiLoG §2, the statutory minimum-wage entitlement is due by the last banking day of the month following the month worked — this rule applies specifically to the minimum-wage portion of pay, not to salary generally.

Source:Minimum pay under the Minimum Wage ActMinimum wage Q&AMiLoG §2 – Due date for minimum wage

Do an employee's contract terms have to be documented?

Yes — under NachwG §2, employers must document the essential terms of employment (such as role, pay, and working time) and provide them to the employee within statutory deadlines. Electronic or text-form delivery can be possible when conditions are met, but paper remains required in certain specified circumstances — not every contract needs to be handwritten or on paper.

Source:Work contractNachwG §2 – Duty to document essential terms

What are the rules on working hours and annual leave?

Under ArbZG §3, the standard working day is up to 8 hours, extendable to 10 hours only if the average reverts to 8 hours over 6 months (24 weeks). Under BUrlG §3, statutory minimum leave is 24 working days based on a 6-day working week, which works out to about 20 days for a typical 5-day week.

Source:ArbZG §3 – Working hoursBUrlG §3 – Duration of leave

What social insurance and accident coverage apply?

A standard employment relationship in Germany — including ordinary part-time work — is generally assessed for health, pension, unemployment, and long-term care insurance, with the exact contributions depending on earnings and circumstances; ordinary part-time work is not automatically a Minijob. The special Minijob treatment applies only where earnings stay within the statutory Minijob earnings limit, or where the specific conditions for a short-term Minijob are met, and it should not be equated with reduced-hours work in general. Employers separately fund statutory accident insurance as its own, distinct insurance branch.

Source:Social securityMinijob informationInsuring employees correctlyInformation for foreign companies

How do notice periods and terminations work?

The BGB §622 baseline gives 4 weeks' notice to the 15th or end of a month, with employer-side notice periods lengthening as service increases; an agreed probation period of up to 6 months may allow 2 weeks' notice instead. Under BGB §130, notice takes effect once it's received by the other party, and under BGB §623, terminations and separation agreements must be in written form — electronic form is explicitly excluded.

Source:BGB §622 – Notice periodsBGB §130 – Effectiveness on receiptBGB §623 – Written form for termination

What information does PIO need to confirm an arrangement?

To check whether an arrangement is available, PIO needs the exact role and workplace in Germany, who the person reports to and takes direction from, the candidate's route and current status — a local German hire, a relocating candidate, or an existing employee being assigned or posted from abroad — the proposed compensation, and the target start date. Once confirmed, PIO coordinates the agreed employment and payroll workflow, including contract, applicable withholding and social insurance, leave, and offboarding.

16 official sources

Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.

Germany hiring guides

Find the right Germany guide for your hire

Browse role- and industry-specific guides to see how a Germany hire typically works before you get started.

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Ready to hire Germany?

Sign up to start an EOR hire Germany. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.