Peak
๐Ÿ‡ฉ๐Ÿ‡ช
Employer of Record
Germany

Your complete solution for seamless German market entry

Hire in Europe's largest economy without setting up a GmbH. Peak's people-first approach lets you employ, pay and support talent across Germany while we handle Lohnsteuer, social security and full employment-law compliance.

โ‰ˆ30%
Corporate tax
15.825% federal (incl. solidarity) plus municipal trade tax.
19%
VAT
Standard rate on most goods and services.
โ‰ˆ21%
Employer social security
Pension, health, care and unemployment contributions.
2-4 wks
Time to first hire
From decision to your first German hire with Peak.
Why Germany

Europe's economic engine, opened up

Germany is the largest economy in the EU, with a deep industrial base and a highly skilled workforce - and hiring here no longer requires a local entity.

Kit holding a globe
  • Largest EU economy

    The biggest domestic market in the European Union.

  • Industrial strength

    A world-leading base in engineering, manufacturing and the Mittelstand.

  • Skilled workforce

    Strong vocational training and a highly qualified talent pool.

  • Central location

    A logistics and business hub at the heart of Europe.

  • Stable framework

    A mature, well-defined legal and regulatory environment.

  • People-first guidance

    We help you weigh whether Germany fits your values, not just the opportunity.

The essentials

Germany at a glance

CapitalBerlin
Income tax0-45%
CurrencyEuro (โ‚ฌ)
Employer social securityโ‰ˆ21%
Official languageGerman
Corporate taxโ‰ˆ30% effective
Minimum wageโ‚ฌ13.90 / hr (2026)
Time to first hire2-4 weeks
Entity vs EOR

Set up an entity, or hire through Peak?

For most teams entering Germany, an EOR is faster, cheaper and lower-risk than establishing a local entity.

Germany entity setupPeak EOR
Costโ‚ฌ25,000 minimum share capital (โ‚ฌ12,500 paid in), plus notary and ongoing complianceNo setup costs, transparent monthly pricing
Time to hireAround 2-6 weeks to incorporate, plus registrations2-4 weeks, full compliance included
Ideal for10+ employees, permanent commitment, local board needsTesting markets, 1-20 employees, flexibility needed
โ‚ฌ0

Your upfront entity cost with Peak. Skip the โ‚ฌ25,000 GmbH share capital, notary formation and ongoing compliance - with the freedom to scale up or down without complications.

Peak's honest advice

We'll tell you when setting up your own entity makes more sense. Our goal is your success, not our commission.

Staying compliant

Employment law and payroll, handled

German employment law is detailed and strongly protective of employees. We keep every contract, deduction and Lohnsteuer filing correct - so you don't have to track it.

Key protections we cover

  • Notice periods: statutory scale from 4 weeks to 7 months with tenure (ยง622 BGB).
  • Dismissal protection: applies after 6 months where the employer has more than 10 staff (KSchG).
  • Annual leave: minimum 20 days on a five-day week.
  • Minimum wage: โ‚ฌ13.90/hour from January 2026 (rising to โ‚ฌ14.60 in 2027 - upcoming).
  • Probation: maximum 6 months (ยง622(3) BGB).

Mistakes we prevent

  • Misclassifying contractors who should be employees.
  • Inadequate probation-period documentation.
  • Missing mandatory registrations and filings.
  • Incorrect holiday-pay and leave calculations.

Germany payroll & tax, at a glance

ComponentDetail
Income tax (Lohnsteuer)0-45% progressive, with a โ‚ฌ12,348 tax-free allowance (2026)
Solidarity surcharge5.5% of income tax, higher earners only
Social securityโ‰ˆ21% employer / โ‰ˆ20% employee (pension, health, care, unemployment)
Contribution ceilings (2026)โ‚ฌ101,400/yr pension & unemployment; โ‚ฌ69,750/yr health & care
FilingMonthly Lohnsteuer via ELSTER to the Finanzamt
Real Germany experts, on our team

Actual local employment specialists - not outsourced advice. TeamHub gives you compliant templates and instant payslips, with human help whenever you need it.

Expertise & values

Real local know-how, business for good

Deep knowledge of German employment law and social security, a real in-house team and a business-for-good ethos - we measure success beyond profit.

01

Deep local experience

Local specialists who know the market and the rules on the ground.

02

Real legal team

Employment lawyers in-house, not outsourced advice.

03

Compliant payroll

Certified specialists, ready for multi-currency operations.

04

Transparent pricing

No hidden fees, no billable hours, no surprises.

05

Business for good

B1G1 partner, B Corp certified, Planet Mark certified.

06

People-first by design

TeamHub keeps you informed; humans handle the hard bits.

Long-term partnership

Beyond compliance - a partner as you grow

Hiring your first person in Germany is just the start. We support the whole journey.

Employee relations

Disputes, performance issues and cultural integration, handled with care.

Continuous compliance

Stay ahead of law changes, regulatory updates and best practice.

Growth support

Scale your team, enter new markets and get strategic advice.

Crisis management

Redundancy, restructuring and legal complications, expertly navigated.

Ready to expand to Germany?

Germany offers unmatched scale and a world-class workforce, but its employment law and social-security system are complex. Getting contracts, notice periods and payroll right from the start matters.

Next steps

  • Free consultation: discuss your Germany expansion goals.
  • Custom assessment: receive tailored strategy advice.
  • Rapid setup: start hiring within weeks.
  • Ongoing partnership: scale with confidence.

Why choose Peak

  • People-first approach with business-for-good values.
  • Real local experts, not outsourced call centres.
  • TeamHub platform: simple, intuitive, foolproof.
  • Truly transparent pricing that makes sense.