Employer of Record · Germany · Industry
Growing a software, AI or connected-product business in Germany means building engineering, implementation and customer teams close to the people who use your product. You choose the roles, the city or site and the candidates; PIO checks the exact German employment arrangement available for that setup. Once confirmed, PIO coordinates the agreed contract, payroll, statutory withholding, applicable social insurance, leave and offboarding.
Explore role-specific planning points for a Software, AI & Connected Products Hiring in Germany team in Germany.
Here's what typically matters most when hiring in Software, AI & Connected Products Hiring in Germany in Germany.
Decide which roles you need - engineers, implementation specialists, technical project managers, support or sales - and in which German city, plus whether each person works remote, hybrid, from an office or at a customer site. PIO checks availability for that exact combination first.
You set reporting lines and technical instructions, including for work performed at a customer site. If a hire is integrated into the customer's organization and takes direct daily instructions there, this may qualify as temporary agency work (AÜG), which generally needs its own permit under German law - resolve this before placement, not after.
Define base pay, bonus or commission, and any allowance for on-call or support rotations, plus who supplies laptops, test devices and secure access tools. PIO coordinates the agreed contract and payroll once these terms and the underlying availability are confirmed.
Your company keeps the product roadmap, technical supervision, intellectual property, data-protection and security decisions, any product or regulatory duties, and the customer contracts and commercial outcomes tied to this team. PIO coordinates the confirmed employment contract and payroll arrangement around it.
When you hire for your Software, AI & Connected Products Hiring in Germany team in Germany through PIO, the responsibilities split clearly.
Once candidates, roles and cities are selected, along with compensation, workplace pattern and reporting lines, PIO confirms the exact German employment arrangement available, then coordinates the agreed contract and payroll steps. An already-authorized local hire is a different starting point from relocation or an assignment or posting, and the applicable route is confirmed separately. Close integration at your customer's site, factory, warehouse or project location, with direct day-to-day instructions from your customer, can trigger German temporary-agency rules, so the exact setup is confirmed before start. Your company remains responsible for the product roadmap and technical supervision, intellectual property, data protection and security decisions, AI and product regulatory obligations, and its own contracts and commercial outcomes; PIO does not recruit or give legal or tax advice.
A practical starting point for the rules that shape a Germany hire. It is not legal advice, and your exact terms will depend on the role, sector and agreement.
Pay, hours and leave
Germany's general minimum wage is €13.90 gross per hour from 1 January 2026, rising to €14.60 from 1 January 2027; sector-specific rates can be higher. A working day is generally capped at 8 hours, extendable to 10 only under statutory averaging rules, and minimum leave is equivalent to 20 days for a regular five-day week.
Written terms and payroll
The essential terms of employment are documented and provided to the employee, and the exact salary due date is set in those terms for each hire rather than assumed. It is not the same single date across every role.
Notice and termination
The statutory baseline is four weeks' notice to the 15th or the end of a calendar month, and employer notice periods lengthen as service grows. An agreed probationary period of up to six months may carry a two-week notice, and termination must be in writing.
Work setup and authorization
Every hire starts by confirming the workplace, who directs the day-to-day work, the expected duration and the person's current German work authorization. A local EOR arrangement differs from relocating someone or extending a temporary assignment from China.
These are general reference points as of 2026 and can vary by sector, agreement and individual circumstances. Confirm the specifics for your hire before relying on them.
This practical guidance draws on the official sources below. Public requirements can change, so the details should be reconfirmed for each hire.
Here's what happens after you tell us who you want to hire.
Tell us the role, workplace, reporting line and target start date so we can confirm availability for this specific hire.
Once availability is confirmed, PIO coordinates the agreed employment terms, payroll setup and statutory registrations for the hire.
You direct the day-to-day work and outcomes; PIO coordinates ongoing payroll, statutory deductions, social-insurance administration, leave and offboarding.
Feasibility depends on the exact setup: site access, reporting lines and who gives day-to-day instructions all matter. Where your customer directly controls and integrates the person into its own operations, German temporary-agency rules may apply, so PIO confirms the exact pattern before the start date. Site safety and technical or business direction remain your customer's responsibility.
PIO needs the roles, German cities or sites, the selected candidates, their current work authorization or the relevant relocation, assignment or posting route, the workplace pattern, reporting and daily-instruction lines, compensation and the intended start date. With this, PIO confirms the available employment arrangement and the next payroll and contract steps.
Share the details of your next Software, AI & Connected Products Hiring in Germany hire and we'll confirm availability, then coordinate the agreed employment and payroll administration around it.
