---
title: "Employer of Record in Germany - Hire without a local entity"
description: "Fronted employs your team in Germany without a local entity. Employer social contributions add roughly 21 to 23% to gross salary. We run payroll."
canonical: "https://fronted.com/countries/germany"
---

# Employer of Record in Germany - Hire without a local entity

_Fronted employs your team in Germany without a local entity. Employer social contributions add roughly 21 to 23% to gross salary. We run payroll._

## Frequently asked questions about employing in Germany

### How long does it take to hire in Germany through Fronted?

\[onboarding time\] for German and other EU/EEA citizens, who need no visa or work permit. The gating items are the employee's tax ID, social insurance number and health insurer, plus the contract terms due by day one. Non-EU hires need a visa. The EU Blue Card threshold in 2026 is €50,700 gross a year, and processing typically takes 1 to 3 months from abroad.

### What are the employer costs on top of salary in Germany?

Employer social contributions are about 21 to 23% of gross up to the ceilings: pension 9.3%, unemployment 1.3%, health 7.3% plus half the fund's extra contribution, and care 1.8%. Accident insurance comes on top and averages about 1.08%. Many employers also add a bonus and 28 to 30 holiday days. On €70,000 the total is around €85,950 before our fee.

### How does holiday work in Germany?

The legal minimum is 20 days on a 5-day week, but 28 to 30 days is the norm, and 30 in most collective agreements. Full entitlement starts after 6 months. Unused days normally have to be taken by 31 March. Holiday pay is based on the previous 13 weeks' average earnings. Germany has 9 national public holidays, and states add more.

### How does termination work in Germany?

Notice must be written and signed by hand. Probation lasts up to 6 months with 2 weeks' notice. After that, notice starts at 4 weeks and rises to 7 months after 20 years. After 6 months in a firm with more than 10 employees, the reason must be socially justified, and the employee has 3 weeks to sue. Severance of about half a month's salary per year of service is a common settlement.

### What happens when we outgrow EOR and want to set up our own local entity in Germany?

When you're ready, we scope the setup of your German GmbH with you. It needs €25,000 in share capital and typically takes 4 to 8 weeks. Moving your team means new employment contracts with your entity. We handle the paperwork and aim to carry over service years and holiday balances. If you're in several countries, you keep one contact for all of them.