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Living and Working in Germany

A short guide for nationals of non EU/EEA countries who would like to live and work in the Federal Republic of Germany. This information is intended to give you an initial and general insight into taking up employment in the Federal Republic of Germany. Therefore, if you have detailed questions, we recommend you to contact your future employer or the responsible offices (e.g. the employment office, insurance office, tax consultant etc.)

Work and Employment
German labour law also applies to foreign employees during their employment within the territory of the Federal Republic of Germany. When you work in Germany, you are placed in the same position as German employees in respect to labour law, and you also have recourse to the works/office council or the labour courts in the case of differences of opinion with your employer.

Tariff Contract
Tariff contracts play a major role in German employment relationships. They are negotiated from time to time between the social partners in the various branches of trade and industry. Tariff contracts are a component part of the employment contract, if employees' and employers' association are tariff party members, or if a tariff contract was declared as being universally valid within a certain sector. They apply equally to both employee and employer. In particular, they also contain agreements on minimum wages and salaries for employees in the relevant branch of trade and industry or works/office.

Employment Contract
As a rule, the employment relationship is specified by a written employment contract. In accordance with the basic principle of equal rights for men and women, employers must not fundamentally exclude either men or women from appointment to a job. When recruiting, they are required to confine their questions to those for which the answer is of legitimate interest with regard to the foreseen employment relationship. For example, questions about an intended marriage or pregnancy are not permitted. On the other hand, the employee must voluntarily point out illnesses and physical impairments which affect the performance of the intended activity. In works/offices which have a works/office council, the agreement of the works/office council is required for every appointment. All works/offices with more than five employees (eligible to vote for the works/office council), three of which can be voted for, can have a works/office council. In the public services, the staff council performs the corresponding tasks.

Rights and Duties
The employee is obliged to perform the agreed duties. In case of doubt, the content and scope of his/her rights and duties shall be in accordance with the valid terms of the contract for the contractual relationship, general laws or the tariff agreement. On his side, the employer is obliged to pay for the services performed in accordance with the agreement.

Wages and Salaries

Salaries in Germany in DM
Professional group	Minimum	Medium	Maximum
Application Developer	43000	76300	104800
CAD/CAM Specialist	49000	85900	117700
Database Administrator	60100	94600	129400
Database Developer	53200	92200	126200
DTP Specialist	45200	80300	110200
Internet Developer	57400	98600	134800
IT Consultant	62200	105700	144400
IT Controller	54800	94600	129400
IT Trainer	63800	108100	147700
Multimedia Specialist	46300	81900	112300
Network/System administrator	52700	91400	125200
Network Engineer	60100	102600	140100
SAP Consultant	65900	111300	151900
SAP Developer	56400	97000	132700
Sales Manager	58000	95000	135000
Software Developer	55000	85000	120000
Support/User Helpdesk	47900	84300	115600
System Analyst	55900	96200	131600
System Engineer/Manager	61200	104200	142300
Telecommunications Specialist	55300	95400	130500
Web Designer	59600	101600	139100

Wages and salaries are not usually paid in cash. The employee should therefore open an account with a bank or the Postbank. All banks, savings banks and the Postbank carry out transfers abroad.

Working Hours
Please note that not only the commencement of work and, if applicable, the end of the employment relationship, but also the weekly and daily working hours are specified in the employment contact, in the tariff agreement or by a works/office agreement. The usual working hours in the works/office shall be deemed to be agreed in cases of doubt.

Holiday Entitlement
Employees over the age of 18 receive at least 24 working days holiday per year. The minimum amount of holiday is increased in accordance with a tariff agreement, age and/or years of service in the company. As a rule, employees receive between 25 and 30 working days holiday per year. The employee does not normally have any holiday entitlement during the probationary period. Moreover, the employer and employee must come to agreement on each occasion as to when holiday may be taken. The employee must not undertake any other paid work during his/her holiday.

Sickness
As a rule, the employee has a legal entitlement for the payment of wage or salary to continue for a period of six weeks in case of sickness. The employee must provide evidence in the form of a doctor's certificate of his/her unfitness for work by the third day of the sickness at the latest. He/she is obliged to inform the employer of his/her unfitness for work and the expected duration of the sickness immediately. This may also be done by telephone or by a message sent via a relative or colleague. The same applies if the employee falls ill during his/her holiday.

Ending the Employment Relationship
Limited period employment relationships come to an end without any further action being taken, i.e. without giving notice, when the agreed period of time has elapsed.

Social Security for the Employee

Social Insurance
Foreigners in Germany are placed in the same position as the German employees with regard to social insurance. As a rule, the employer must guarantee that they are insured against sickness and unemployment and entered into the pension scheme upon commencement of the employment relationship. The employer and employee each pay half of the social insurance contributions.

The employee's contributions are deducted from his/her gross pay and transferred, together with the employer's contribution, to the social insurance institution. The employer is furthermore obliged to insure you against accident with his trade association; he alone pays the contributions to the accident insurance.

Statutory Health Insurance
The statutory health insurance schemes have the task of maintaining the health of the insured, to restore it in case of sickness or to improve the state of health of the insured. Higher-paid employees may take out private health insurance instead of joining a statutory health insurance scheme.

The financial expenditures of the statutory health schemes are covered by the contributions of their members. The amount of these contributions is based on the incomes which are subject to contributions. The statutory health schemes do not charge any additional contributions for family numbers who are coinsured. After the period of entitlement to continuation of payment of wages has expired, the insured are entitled to sickness benefit if they are unfit for work due to sickness or are being treated in a care or rehabilitation institution. The amount of sickness benefit is currently 80 per cent of the regularly attained earnings from work and is calculated by calendar days. Sickness benefit is paid for a maximum duration of 78 weeks for one and the same illness.

Statutory Pension Insurance
Employees subject to obligatory social insurance are insured in the national pension insurance scheme for the duration of their employment. This also applies to foreign employees. However, they are only entitled to benefits if they have completed the required waiting periods (legal rights to future pension payments) or when the Federal Republic of Germany has concluded a social insurance agreement with their country of origin. For specific questions concerning Pension Insurance please contact the competent pension insurer.

Unemployment Insurance
The unemployed are employees who are temporarily not in an employment relationship. If an unemployed person cannot find acceptable work immediately, then, under certain circumstances, he/she will receive unemployment benefit or unemployment assistance in place of the lost earnings. The pre-condition for this is that the person concerned is available to the labour market and has been employed subject to obligatory contributions for 360 days during the last three years. More information can be obtained from your local employment office.

Statutory Accident Insurance
All employers are obliged to insure their employees against all types of accidents at work with their trade association. The group of persons insured includes all employees who are in an employment, service or trainee relationship, irrespective of the amount they earn. The employees are insured against accidents at work which occur during and as a result of their employment. This includes accidents occurring on the way to and from the place of work and typical occupational diseases. The accident insurance assures the injured employee, if he/she can no longer, or only to a limited extent perform his/her work, that he/she will receive a pension for occupational invalidity and, in the case of his/her death, that his/her immediate family will receive a pension for surviving dependants and a contribution to funeral expenses. The payments are calculated according to the insured's earnings in the previous year. The invalidity pension is determined in accordance with the degree of disability. A full pension is paid in the case of total disability to work. It amounts to two thirds of the last year's earnings from work. Foreign employees who are entitled to take up work in the Federal Republic of Germany can become entitled to these benefits in the same way as Germans. Periods of insurance or employment abroad can be taken into consideration under certain circumstances.

Income Tax
All employees resident in Germany must pay tax on their earnings in accordance with German law. The income tax rates are progressively graded according to the corresponding wage or salary. If certain requirements are met, spouses and children can be considered for reducing the burden of taxation. If one is a member of a recognized religious community, then a church tax is deducted in addition to the income tax. In the Federal Republic of Germany these amounts of between eight and ten percent of the income tax are to be paid. The so-called solidarity surcharge has also been imposed in Germany for some years. This goes towards financing the economic development of the new federal states. The solidarity surcharge currently amounts to seven and a half per cent of the income tax. The employer deducts the income tax from the wage or salary and transfers it to the tax office. The same applies to the church tax and the solidarity surcharge. So-called occupational expenses and special expenses can be set against incomes when determining the taxable income. Upon request, married couples may be assessed for tax jointly; in this case their taxable incomes are added together and each half of this amount is subject to the appropriate tax rate (splitting). This applies irrespective of whether one or both of the married persons have incomes.

After the completion of a calendar year, employees have to submit their income tax declaration by a specific date (i.e. by 31 May of the year). This is used by your local tax office to make your tax assessment.

Accommodation and Apartments
As in all other industrial countries, you generally need to budget 25 - 35 per cent of your monthly income in Germany for accommodation. Obtain information about renting a room, apartment or house, and also about so-called additional rent charges (heating, electricity, water and sewage).

The landlord often asks the tenant for a deposit amounting to two or three months rental or a bank guarantee. Private accommodation agencies charge an agency fee amounting to two or four months rent if they are successful in finding you accommodation. However, as a precautionary measure, you should not make any payments in advance.

Once You Have Found Work in Germany

Related Links
	Green road to Germany
	German Green Card - FAQs

Once you have found work in the Federal Republic of Germany, you are, on principle, subject to the German obligatory social insurance; if you lose your job, you can apply for unemployment pay or unemployment assistance under specific circumstance, i.e. after completing the eligibility periods; you may join a trade union and participate in the elections for the works/office council.

Foreigners who have found work and accommodation in the Federal Republic of Germany must complete the following formalities with the town or community in which they live (please take your passport or personal identity card with you):

1. ou must register yourself at the local registration office.
2. Then you can apply to your local aliens office for a residence permit (also take your confirmation of registration and your employment contract with you for this).
3. Apply to the town or community council income tax card issuing office for an income tax card (take your confirmation of registration, your residence permit and proof of the number of members of your family with you for this).
4. The employer registers you with the pension and unemployment insurance schemes. If your health insurance is with the Allgemeinen Ortskrankenkasse (AOK) (General Local Health Insurance Scheme) the employer will also register you there.
5. However, if you are insured by a different health insurance scheme or a private health insurance company then you must register there yourself and give your employer evidence of your registration.
6. If you are still covered by a health insurance scheme in your country of origin but are about to take up employment in Germany, then ask your health insurer what steps you have to take so that your insurance protection remains unbroken.
7. Please give your income tax card and health insurance certificate to your employer. Taking up employment without an income tax card is not permitted and is prosecuted as so-called "moonlighting". As an employee in the Federal Republic of Germany, you must also have a so-called "social insurance identity card", your employer will apply for this.

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