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Germany – Employment Terms and Conditions

Working Hours in Germany

The standard working hours in Germany are 8 hours per day and 40 hours per week. However, many employees work longer hours due to collective agreements or individual contracts. Overtime work must be compensated with additional pay or time off.

Employment Rights and Benefits in Germany

Paid Vacation and Sick Leave

Employees in Germany are entitled to a minimum of 20 days of paid vacation per year. In addition, workers are entitled to a varying amount of sick leave depending on the duration of their employment. For example, employees are entitled to six weeks of paid sick leave per year after a certain period of employment.

Social Security Benefits

All employees in Germany must be registered with the German social security system. Employers must contribute to the system on behalf of their employees, while employees must also make contributions. This contribution provides employees with a range of benefits, including healthcare, maternity leave, and a pension.

Maternity and Paternity Leave


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Expectant mothers in Germany are entitled to 14 weeks of maternity leave, paid at 100% of their salary. Fathers are entitled to two months of paternity leave, paid at 67% of their salary.

Severance Pay

If an employee is terminated without just cause, they are entitled to receive severance pay. The amount of severance pay depends on the length of service with the employer. For example, employees with less than two years of service are not entitled to severance pay, while those with more than 20 years of service are entitled to a severance payment of one and a half months pay for each year of service.

Pensions

All employees in Germany are entitled to a pension through the German social security system. The pension is calculated based on the number of years of service and the average salary earned during the last 10 years of service. To qualify for a full pension, employees must have contributed to the system for at least 45 years.

Types of Pensions for Expats in Germany

Expats who are living and working in Germany may be eligible for a pension through the German social security system. However, they must meet certain requirements. Firstly, they must have legal residency in Germany and have contributed to the system for at least 60 months. Secondly, they must be at least 67 years old and have stopped working.

Expats who do not meet these requirements may still be able to receive a pension through a private pension plan. These plans are not regulated by the government and are offered by a range of private companies.

Retirement Age in Germany

The retirement age in Germany is currently 67 years old. However, there are some exceptions to this rule. For example, workers who have contributed to the system for at least 45 years may be able to retire at age 63 with a full pension. Those who have contributed for at least 35 years may be able to retire at age 63 with a reduced pension.

In conclusion, workers in Germany are entitled to a range of employment rights and benefits, including paid vacation and sick leave, social security benefits, and severance pay. All employees must be registered with the German social security system, which provides a pension to those who have contributed for at least 45 years. Expats may be eligible for this pension if they meet certain requirements, or they may be able to receive a private pension plan. The retirement age in Germany is currently 67 years old but may be lowered for those who have contributed to the system for a certain number of years. It is important for both employers and employees to understand these employment terms and conditions to ensure that workers are being treated fairly and in accordance with the law.


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