13th month pay
in Germany.

Q: Is the 13th month pay required by law or standard in Germany?

In Germany, 13 th month pay is not required, but it is an expected standard.

Q: Are there more than 13th months of pay in Germany?

Yes. In Germany there is a legal distinction between 13 th month pay and the Christmas bonus. Both bonus payments are expected annually as a standard in Germany.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES German / English

PAYROLL TAX 20.66%

PAYROLL CYCLE Monthly

TIME TO HIRE 48 hours

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Germany

Is there a 13th month pay in Germany?

Yes there is. However, unlike other European 13^th month pay, in German there is a legal distinction made between a 13^th month payment and a Christmas bonus. The 13^th month pay is salary, whereas the Christmas bonus (14^th month) is a special bonus intended to pay additional holiday expenses.

How is the 13th month pay calculated in Germany?

13^th month pay in Germany will be the amount of a full month’s of wages as a year-end bonus.

When is the 13th month salary paid in Germany?

The 13^th month pay is paid in Germany at the end of the year, which is at the end of December.

Does the 13th month salary amount to any extra payment by the employer?

It depends on the structure of the employment contract. However, in Germany, typically the 13^th month pay amount is an extra payment by the employer.

Is the 13th month salary taxable in Germany?

Yes, 13^th month pay in Germany is taxable.

Hiring in Germany, Made Easy

Your business can easily hire employees in Germany without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Is the 13th month pay required by law or standard in Germany?

In Germany, 13^th month pay is not required, but it is an expected standard.

Are there more than 13th months of pay in Germany?

Yes. In Germany there is a legal distinction between 13^th month pay and the Christmas bonus. Both bonus payments are expected annually as a standard in Germany.

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"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

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Gary PaskyVP Software Development, PICS ITech (USA)

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Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)