According to Velocity Global's employment agreement template, when is the salary due in Germany?

In Germany, according to our employment agreement template, salary is due by the last business day of each month.

What date does the law specify salary must be paid in Germany?

In Germany, the law specifies that salaries must be paid before the end of the month.

How is salary calculated and what components does it consist of in Germany?

In Germany, salary calculation for a supported employee consists of the following components:

• A minimum wage set according to legal standards.
• Additional components that are determined by the customer.

The total salary a supported employee receives is based on these factors.

Is there a legal obligation to pay salaries in the same month in Germany?

In Germany, there is no legal obligation for employers to pay salaries within the same month. However, it is required that salaries be paid by the last day of the month.

How many salary payments are made per year in Germany?

In Germany, 12 salary payments are made per year.

Is salary payment monthly and is payment standard at the end of the month in Germany?

Yes, in Germany, salary payments are made monthly, and it is standard for the payment to occur at the end of the month.

Should the employment agreement specify salary in monthly or annual amounts in Germany?

In Germany, the employment agreement should specify the salary on a monthly basis. As indicated in the provided templates, the gross salary is stated per month.

What tax and social security obligations do employees have in Germany?

In Germany, the general income tax rates are determined by direct withholding on payroll and are based on the tax class of the supported employee.

What are the details of the customary bonuses, including the 13th or 14th-month salary, and when are these payments typically made in Germany?

In Germany, there is no obligation and it is uncommon for employers to pay a 13th-month salary. However, a Christmas bonus is a customary incentive frequently offered to employees.

What is the minimum wage information in Germany?

Effective 1 January 2025, the minimum gross hourly wage in Germany is EUR 12.82. The Federal Government has established a standing Minimum Wage Commission.

Leased Employees are paid a higher minimum wage due to collective bargaining agreements. From March 1st, 2025, it increases to 14.43 EUR.