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How Much Does It Cost to Hire a German Local National 2019

When it comes to hiring a local national in Germany, it’s important to understand the costs involved. From salaries and benefits to taxes and social security contributions, there are numerous financial considerations to take into account. In this article, we’ll explore the various costs associated with hiring a German local national in 2019, and provide valuable insights for businesses looking to expand their workforce in the country.

Salaries and Benefits

The first and most obvious cost of hiring a German local national is their salary. According to the Federal Statistical Office of Germany, the average gross annual earnings for full-time employees in Germany was €50,800 in 2018. However, it’s important to note that salaries can vary significantly depending on factors such as industry, experience, and location. For example, employees in the financial services sector in cities like Frankfurt may command higher salaries compared to those in other regions or industries.

In addition to salaries, employers are also required to provide benefits such as paid vacation, sick leave, and contributions to employee retirement funds. While the specific benefits offered can vary from company to company, it’s important to budget for these additional costs when hiring a local national in Germany.

Taxes and Social Security Contributions

In Germany, both employees and employers are required to contribute to the country’s social security system, which includes health insurance, unemployment insurance, and long-term care insurance. The total cost of these contributions can vary depending on the employee’s salary and other factors, but it’s generally expected that employers will cover around 20-25% of an employee’s gross salary in social security contributions.

In addition to social security contributions, employers are also responsible for withholding income tax from their employees’ paychecks and remitting it to the government. The specific amount of income tax withheld will depend on the employee’s tax bracket, which is determined by their earnings and other personal circumstances.

Other Considerations

In addition to the direct costs of salaries, benefits, and taxes, there are other financial considerations to keep in mind when hiring a local national in Germany. For example, employers may need to budget for recruitment and onboarding costs, as well as any additional expenses related to providing a safe and comfortable work environment for their employees.

Furthermore, it’s important to consider the potential impact of currency exchange rates on the cost of hiring a local national, especially for businesses based in countries outside the Eurozone. Fluctuations in exchange rates can have a significant effect on the overall cost of employing foreign workers, so it’s wise to monitor these changes closely and plan accordingly.


Hiring a German local national in 2019 involves a range of financial considerations, from salaries and benefits to taxes and other expenses. By understanding these costs and planning accordingly, businesses can effectively budget for the expansion of their workforce in Germany. It’s important to stay informed about the latest regulations and financial requirements, and to seek professional advice when necessary to ensure compliance with German employment laws and regulations. Hiring local nationals can be a rewarding investment, and with careful planning, businesses can navigate the financial aspects of the process with confidence and success.