Working in Germany: what you need to know before starting your new job

You’ve found a job in Germany? Congratulations! Employees of German companies benefit from interesting tasks and attractive working conditions. However, there are also a few peculiarities that you should be aware of. Here’s an overview. 

Are Germans really that hard working? 

There are some typical prejudices people tend to have about Germans: they are assumed to be working all the time, drinking lots of coffee and beer, and to be spending their free time watching football or mowing the lawn. The first point on this list is not true in any case. People in Germany worked 34.3 hours per week on average in 2024, less than the European average of 36.8 hours.  

How much do people earn in Germany? 

The statutory minimum wage is currently EUR 13.90 in Germany and will go up to EUR 14.60 per hour in 2027. However, most employees in Germany earn significantly more. The average gross salary of a full-time worker was EUR 4,784 in April 2025. A person’s salary depends strongly on their profession, amount of experience and the industry they work in.  

How much do people pay in social insurance contributions and tax? 

Tax and social insurance contributions are deducted from the gross pay, which means that the net pay is considerably lower. Employees are typically paying around 21 percent of their gross income in social insurance contributions in 2026. Contributions to the mandatory health insurance (8.75 percent), pension insurance (9.3 percent), unemployment insurance (1.3 percent) and care insurance (1.8 percent) are deducted directly. 

German tax law is complex, as the amount of tax due depends, among other things, on a person’s income, marital status and number of children. An unmarried employee with an average income will pay around 17 percent of their gross salary in income tax. 

What rights do employees have in Germany? 

Employees in Germany have a number of rights. There are precise regulations governing issues such as protection against unfair dismissal and continued pay in the event of illness (up to six weeks). Of course, there are rules concerning the working hours, too: eight hours a day are the usual number, and ten are permitted in exceptional cases. Part-time arrangements are also possible and agreed from case to case. The ways in which overtime is handled and remunerated is specified in employment contracts.  

A break of at least 30 minutes is mandatory on a work day lasting between six and nine hours. At least 45 minutes of breaktime are required from nine hours onwards. Most companies make a point of clearly separating work and free time: employees are normally not expected to be sending emails late at night or taking calls at the weekend.   

How much annual leave do people get in Germany? 

The statutory minimum is 20 days of annual leave for a full-time worker, four weeks in other words. However, many companies give their employees 30 days of annual leave as standard. In addition, there are numerous bank holidays. These vary from state to state, and Bavaria has the greatest number of bank holidays (twelve). Many employees also do not have to work on Christmas Eve and New Year’s Eve, even though these are not actually bank holidays. 

Do I have to register my place of residence? 

Before you start your new job, you should make sure to factor in enough time for finding a place to live. Affordable housing can be scarce and in great demand, especially in big cities. Once you have signed your lease, you need to take care of some typical German bureaucracy and make an appointment to register at the Einwohnermeldeamt (registration office). You have to register as a resident within two weeks of moving in. This registered address is needed, for example, for opening a bank account, registering with a health insurance provider, and signing a mobile phone contract.  

What do I need to know about German workplace etiquette? 

It is perfectly normal to be nervous on your first day in a new job. Here are a few simple dos and don’ts that will help you make a good impression from the start. There is some truth in the cliché that Germans care a lot about punctuality. It is considered a sign of mutual respect. If an online meeting is scheduled for 9 a.m. you should make sure you are online by 9 a.m. at the latest. When it comes to in-person meetings, people tend to arrive a few minutes early. 

To begin with, you should use the more formal “Sie” to address your colleagues and superiors and address them with “Herr” or “Frau” and their surname. Some academics like to be addressed with their official title. The more casual “Du” is by now common in many companies, and when you are new, people are likely to soon ask you to address them in this way.  

Whether you should wear a suit or jeans depends on the industry. As a general rule, dress codes have become far more relaxed over the past few decades. However, it is usually a good idea to opt for a more conservative outfit if you have a job interview or an important appointment.  

Do Germans always say what they mean? 

People from other countries are often surprised by the direct way of communicating that is common in Germany. In their working life, people tend to openly address any issues, trying to find a solution together. However, unobjective criticism is considered inappropriate. Efficiency is usually highly valued, and that is why small talk is limited to the lunch break in many companies.  

By the way: the term “Mahlzeit!” (meal time) that is common in many parts of Germany, does not necessarily refer to food. It is simply a friendly way of greeting colleagues that is used from late morning to early afternoon.