Employment Cost Calculator for Germany
Calculate your complete hiring costs for Germany employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate (Employer Share) | Base |
|---|---|---|
| Pension Insurance | 9.3% | Gross Salary |
| Health Insurance | 7.3% + half of additional fee | Gross Salary |
| Unemployment Insurance | 1.3% | Gross Salary |
| Long-Term Care Insurance | 1.8% (varies for childless employees) | Gross Salary |
Filing & Compliance
- Income tax withholding and church tax remittances are due monthly by the 10th of the following month.
- Social security contributions are due monthly by the third-last working day of the month.
- Employers must issue a "Lohnsteuerbescheinigung" (certificate of wages) to each employee by the February payroll.
Income Tax Brackets
| Income Range | Tax Rate |
|---|---|
| Up to €12,096 | 0% |
| €12,097 to €66,760 | 14% - 42% (progressive) |
| €66,761 to €277,825 | 42% |
| Over €277,826 | 45% |
Employee Contributions
| Deduction Type | Rate (Employee Share) | Cap (Annual) |
|---|---|---|
| Health Insurance | 7.3% (plus average additional contribution) | €66,150 |
| Pension Insurance | 9.3% | €96,600 |
| Unemployment Insurance | 1.3% | €96,600 |
| Long-term Care Insurance | 1.7% - 2.9% (higher for childless) | €66,150 |
Personal Allowances
- Basic tax-free allowance: €12,096 for single individuals.
- Employee lump-sum allowance for business deductions: €1,230.
- Child allowance: €8,952 per child for parents in tax class 1, 2, and 3.
