Employee benefits & policies in Germany

With so many employee benefits options in Germany, how do you choose the right benefits for your team?

Ben character at his computer

Employee benefits & policies in Germany

We’ve done the heavy lifting for you and created a handy guide to employee benefits in the Germany.

To help you choose the perfect package for your team, we’ve outlined what counts as a:

  • statutory requirement
  • standard benefit
  • great benefit
Question mark
Benefits policies - company policies that involve employee benefits e.g., holidays, flexible working, maternity/paternity, etc.
πŸ“
Statutory
β˜‘οΈ
Market Standard
🌟
Great

Holidays

πŸ“
Statutory

Not applicable

20 paid days of leave

πŸ‘
Competitive

27-30 days paid

πŸ‘
Above & Beyond

6 weeks or unlimited PTO

Flexible Working

πŸ“
Statutory

Not applicable

πŸ‘
Competitive

Negotiable on number of days or working hours

πŸ‘
Above & Beyond

Early finish days

Sick Leave

πŸ“
Statutory

Not applicable

6 weeks 100% paid

πŸ‘
Competitive
πŸ‘
Above & Beyond

7-8 weeks 100% paid

Paternity Pay

πŸ“
Statutory

Not applicable

πŸ‘
Competitive

Parental leave up to 24 months (unpaid)

πŸ‘
Above & Beyond

Paid parental leave

Maternity Pay

πŸ“
Statutory

Not applicable

14 weeks paid

πŸ‘
Competitive

Parental leave up to 24 months (unpaid)

πŸ‘
Above & Beyond

Paid parental leave (on top of statutory 14 weeks)

Other

πŸ“
Statutory

Not applicable

Unemployment insurance: employer contribution is 3% of the salary.

Employers contribution:

Accident insurance - 0.55% of salary

Nursing care insurance 1.53% of salary

Severely Handicapped Fund €12.50 per month

πŸ‘
Competitive

13th month pay

πŸ‘
Above & Beyond

Personal development leave

Volunteering days

Question mark
Core benefits - Β traditional employer-paid benefits products e.g., insurances (health/life) and pension with core coverage
πŸ“
Statutory
β˜‘οΈ
Market Standard
🌟
Great

Medical

πŸ“
Statutory

Not applicable

Public plan: 14.6% of the employees salary

Employer contribution: 7.3%

πŸ‘
Competitive

Travel Insurance

πŸ‘
Above & Beyond

International Private Medical Insurance top up

Other Health

πŸ“
Statutory

Not applicable

Basic dental and vision are covered under public health plan

πŸ‘
Competitive
πŸ‘
Above & Beyond

Supplemental dental and vision

Pension

πŸ“
Statutory

Not applicable

Pension rate is currently 18.7% of the salary

Employers contribution: 9.35%

πŸ‘
Competitive

Company pension or retirement program

πŸ‘
Above & Beyond

Individual private pension or retirement savings program

Life Insurance

πŸ“
Statutory

Not applicable

πŸ‘
Competitive

2x salary

πŸ‘
Above & Beyond

4-6x salary

Income Protection

πŸ“
Statutory

Not applicable

Claim from government through pension payment

πŸ‘
Competitive
πŸ‘
Above & Beyond

Occupational disability insurance plan

Question mark
Supplemental benefits - contemporary benefits to give your benefits package an edge e.g., flex allowances & salary sacrifice options
πŸ“
Statutory
β˜‘οΈ
Market Standard
🌟
Great

Wellbeing

πŸ“
Statutory

Not applicable

πŸ‘
Competitive

Gym subsidies

πŸ‘
Above & Beyond

Fully paid gym membership or fitness pass

Learning and Development

πŸ“
Statutory

Not applicable

πŸ‘
Competitive

Subscriptions with online platforms

€750 or $850 per person per year

πŸ‘
Above & Beyond

Unlimited L&D budget for work reated training

Working from Home

πŸ“
Statutory

Not applicable

πŸ‘
Competitive

Remote first policy

WFH allowance

πŸ‘
Above & Beyond

Co-working space budget

Salary Sacrifice & Other

πŸ“
Statutory

Not applicable

πŸ‘
Competitive

Cycle to Work Scheme

Transport allowance or Job Ticket

Childcare allowance or government childcare scheme

πŸ‘
Above & Beyond

Reduction of salary for more holiday

Cell phone allowance

Car allowance

Employee stock options

Food & Drink

πŸ“
Statutory

Not applicable

πŸ‘
Competitive

Food vouchers/prepaid cards

In office snacks and beverages

πŸ‘
Above & Beyond

Free breakfast or lunch

Weekly socials/happy hours

What are the tax implications of employee benefits & policies in Germany

Tax is a tricky one - especially with a global team to manage. Our tax guide simplifies the tax implications of various employee benefits in Germany for you.

We’ve narrowed down how employee benefits affect:

  • Tax reporting
  • Employer tax
  • Employee tax
Question mark
Benefits policies - company policies that involve employee benefits e.g., holidays, flexible working, maternity/paternity, etc.
πŸ“
Tax Reporting
πŸ‘©β€πŸ’Ό
Employer Tax
πŸ‘«
‍Employee Tax
No items found.
Question mark
Core benefits - Β traditional employer-paid benefits products e.g., insurances (health/life) and pension with core coverage
πŸ“
Tax Reporting
πŸ‘©β€πŸ’Ό
Employer Tax
πŸ‘«
Employee Tax
No items found.
Question mark
Supplemental benefits - contemporary benefits to give your benefits package an edge e.g., flex allowances & salary sacrifice options
πŸ“
Tax Reporting
πŸ‘©β€πŸ’Ό
Employer Tax
πŸ‘«
Employee Tax

Wellbeing

πŸ“
Statutory
πŸ‘©β€πŸ’Ό
Employer Tax
πŸ‘«
Employee Tax

Learning and Development

πŸ“
Statutory
πŸ‘©β€πŸ’Ό
Employer Tax
πŸ‘«
Employee Tax

Working from Home

πŸ“
Statutory
πŸ‘©β€πŸ’Ό
Employer Tax
πŸ‘«
Employee Tax

Salary Sacrifice & Other

πŸ“
Statutory
πŸ‘©β€πŸ’Ό
Employer Tax
πŸ‘«
Employee Tax

Food & Drink

πŸ“
Statutory
πŸ‘©β€πŸ’Ό
Employer Tax
πŸ‘«
Employee Tax

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