Employee benefits and leave in Germany

At a glance

Key figures with the official source for each, checked November 2026.

Paid annual leave and public holidays

The Bundesurlaubsgesetz counts leave in working days from Monday to Saturday. The minimum is 24 such days, which converts to 20 days for a five-day week. Part-time staff who work fewer days per week receive a proportional number of days.

• The full entitlement arises after six months of employment. Before that, the employee earns one twelfth per full month.
• Leave must be taken in the calendar year. Carry-over is allowed for urgent business or personal reasons and must then be used in the first three months of the next year.
• Holiday pay is based on average earnings over the 13 weeks before the leave.
• Untaken leave is paid out only when the employment ends.

Employment contracts in professional roles commonly grant 28 to 30 days. Days above the statutory minimum can follow different contractual rules, for example on expiry.

Public holidays are a matter of state law. Only German Unity Day on 3 October is set at federal level. Nine holidays are observed in every state, and totals run from 10 in states such as Berlin and Hamburg to 12 statewide in Bavaria, with more in some municipalities. The holiday calendar that applies is the one at the employee's place of work. Pay continues on public holidays under the Entgeltfortzahlungsgesetz.

Sick leave: who pays and for how long

An employee who is unable to work through illness keeps full normal pay from the employer for up to six weeks. The right starts once the employment has lasted four weeks without interruption. Overtime pay is not included.

A new six-week period applies to each new illness. For the same illness, a fresh six weeks only arises if the employee was not off sick with it for at least six months, or if twelve months have passed since the first absence began.

After six weeks the statutory health fund pays Krankengeld. It is 70% of regular gross pay up to the contribution ceiling, capped at 90% of net pay, and runs for at most 78 weeks within three years for the same illness.

The employee must report sickness without delay. A medical certificate is needed when the absence lasts longer than three calendar days, and the employer may ask for it sooner. Members of statutory health funds do not hand in a paper certificate under this rule, but they must still have a doctor confirm the incapacity.

Employers that normally have no more than 30 employees take part in the U1 scheme and recover up to 80% of sick pay from the health fund. Larger employers carry the cost themselves.

Maternity protection and maternity pay

The Mutterschutzgesetz bans work in the six weeks before the due date, unless the employee expressly chooses to work, and for eight weeks after the birth. The period after birth is 12 weeks for premature or multiple births, or on request where a disability of the child is diagnosed. Days lost before an early birth are added afterwards.

The Act also covers pregnancy loss. Protection is 2 weeks after a miscarriage from the 13th week of pregnancy, 6 weeks from the 17th week and 8 weeks from the 20th week, unless the employee chooses to work.

During the protection periods a woman in the statutory health system receives EUR 13 per calendar day from the health fund. The employer pays the difference up to her average net pay of the last three months. Where a doctor or the employer's risk assessment bans work outside these periods, the employer pays her average earnings in full.

Both payments, plus the employer's social contributions on them, are reimbursed at 100% through the U2 levy that every employer pays. Maternity is therefore close to cost neutral for the employer in cash terms. Leave continues to accrue during work bans.

Parental leave, parental allowance and paternity leave

Each parent can take unpaid, job-protected parental leave (Elternzeit) until the child's third birthday. Up to 24 months of it can be moved to the period between the third and eighth birthday. The employee must request leave at least 7 weeks before it starts, or 13 weeks for leave after the third birthday. Leave up to the third birthday does not need the employer's consent.

During parental leave the employee may work part time up to 32 hours a week. In companies with more than 15 employees there is a right to reduced hours after six months of service.

The state, not the employer, pays Elterngeld. It replaces 65% to 67% of prior net earnings, more for low earners, between EUR 300 and EUR 1,800 a month. Parents share 12 monthly amounts, and 2 further partner months are available under the conditions of § 4 BEEG. Entitlement ends where taxable income exceeds EUR 175,000.

Germany has no separate statutory paid paternity leave. A proposed paid leave for partners after a birth (Familienstartzeit) had not been enacted when this page was checked. Fathers use parental leave with Elterngeld, and some contracts grant a day or two of paid special leave at the birth.

Mandatory insurance and pension

Every employee is enrolled in five statutory insurance branches: pension, health, long-term care, unemployment and accident insurance. The first four are funded jointly through payroll. Accident insurance is paid by the employer alone.

• Health. The employee chooses the statutory health fund. Employees earning above EUR 77,400 a year in 2026 may opt for private health insurance instead.
• Pension. The statutory pension is financed at 18.6% of pay up to EUR 8,450 a month.
• Occupational pension. There is no duty to fund a company pension. Every employee can, however, require the employer to convert up to 4% of the pension contribution ceiling from gross pay into an occupational pension. In 2026 that is EUR 4,056 a year. The employer must add 15% of the converted amount to the extent it saves social contributions (§ 1a Betriebsrentengesetz).

Severely disabled employees receive five extra days of paid leave a year (§ 208 SGB IX). Parents in the statutory health system can claim child sickness benefit from the fund when a child under 12 is ill. In 2026 the limit is 15 working days per child for each parent and 30 for single parents.

Market-standard supplementary benefits

Statutory benefits are the floor. Offers for professional and technical roles in Germany usually add several items, and candidates compare them closely.

• Extra leave. 28 to 30 days of annual leave is the norm in technology and professional services, against a legal minimum of 20.
• Company pension contribution. Many employers pay more than the mandatory 15% subsidy, often by matching part of the employee's deferral.
• Mobility. A subsidised public transport ticket, a leased bicycle or, for senior and sales roles, a company car.
• Remote work support. A home office allowance or equipment budget.
• 13th salary or bonus. Common under collective agreements and in larger companies, though not required by law.
• Sick pay top-up. Some employers top up Krankengeld for a period after the sixth week.

Tax and social insurance treatment differs by benefit, so the same budget can be worth more or less to the employee depending on how it is delivered. Under an EOR arrangement using licensed employee leasing, benefits also need to be checked against the equal treatment rule in § 8 Arbeitnehmerüberlassungsgesetz, which looks at the terms of comparable staff at the client.

Frequently asked questions

More on hiring in Germany

Employer of record and hiring guide for Germany · Payroll and taxes · Termination and notice · Contractors vs employees · Cost calculator · EOR vs PEO vs entity

Sources

• Bundesurlaubsgesetz (Federal Leave Act)
• Entgeltfortzahlungsgesetz (Continued Remuneration Act)
• Mutterschutzgesetz (Maternity Protection Act)
• Bundeselterngeld- und Elternzeitgesetz (BEEG)
• Sozialgesetzbuch V § 47, Krankengeld amount
• Aufwendungsausgleichsgesetz, U1 and U2 reimbursement
• Betriebsrentengesetz § 1a, deferred compensation
• Federal Ministry of the Interior, national holidays

This page is general information, not legal, tax or immigration advice. Rates, thresholds and procedures change, and how they apply depends on the facts. Confirm current figures with a qualified adviser or with Dryft before acting. Checked November 2026.