Working Conditions in Germany

German Labour Code (which is actually a set of employment laws) provides a high level of protection to all employees. With a five-day working week, the maximum working hours are defined at 40 hours per week while most employees work 38.5 hours a week. All employees are entitled to a minimum of 18 days of holiday per year. However, most employers offer their employees 25-30 days of holiday. In addition, there are nine bank holidays in Germany and six regional holidays celebrated in different federal states. The minimum wage in Germany is 8.84 Euro per hour, that is 1,498 Euro per month.

Personal Income Tax

Germany has a relatively complicated taxation system. The personal income tax rate starts at zero and rises progressively to a maximum of 45% for high-income individuals (earning more than 260,000 Euros a year). In addition, there is a 5.5% solidarity surcharge (low-income individuals pay less or are excluded altogether) and an 8-9% church tax for registered church members that are levied on top of the income tax. Social security contributions (amounting to ca 22% of income until a certain ceiling is reached) are deducted from personal income before calculating income tax. Generous tax allowances are provided to families with children.

Job Vacancies in the German Economy

In the German labour market there is a continuously high demand for people with certain special skills. These include highly skilled individuals with university education such as physicians, engineers, teachers, natural scientists, mathematicians and IT specialists as well as qualified specialists with vocational education such as nurses, caregivers and skilled traders of different professions. Moreover, millions of Germans will retire over the coming years which will create demand also in areas where there are no shortages yet. Many experts believe that these gaps can only be plugged with foreign professionals enticed to work in Germany.

To be continued