EREditorial team · Updated 14 Oct 202612 min read20 providers compared across EOR, COR and global payroll36 sources
€7,099 employer cost a month before the EOR fee, €70,000 salaryNot all-in: what it leaves out is under the cost table.
≈22% employer contributions on top of salary
€13.90 minimum wage per hour
€14.60 minimum wage from 1 Jan 2027
A person can work for you in Germany through your own GmbH, an Employer of Record or a self-employed contract. Employees carry employer contributions of ≈22% on top of salary.
Short answer
An Employer of Record employs through a German entity of its own or a partner's, so you can hire before you have a GmbH.
A €70,000 hire through an EOR costs the employer about €7,100 a month before the EOR fee. The provider's fee comes on top and is listed apart.
Your own GmbH starts with notarised articles of association and paid-in share capital.
The minimum wage of €13.90 an hour is already set to rise to €14.60 from 1 Jan 2027.
Nobody: a service contract with a self-employed person
Once the contract is signed
As the contract allows
Not for someone who works under your instructions inside your team.
In Germany the choice turns on what has to exist before the first working day. Your own GmbH needs articles of association in notarial form[1] and a share capital of at least EUR 25,000, with at least half of that minimum paid in before registration.[2][3] An Employer of Record lets you hire before then, but when the employee works in Germany for you, the law treats it as temporary agency work (Arbeitnehmerüberlassung), allowed with limits that the EOR page sets out.[4] A contractor needs no German entity of yours, as long as the person does not work under your instructions and inside your organisation.[5] Where that line runs, and what crossing it costs, is on the contractors page.
What one hire costs
Monthly cost of an employee on €70,000 a year: the cost before the EOR fee.
Cost before the EOR fee, a month€7,099
Gross salary€5,83382%
Employer contributions€1,26618%
Percentages are shares of the total, not of salary.
Plus the EOR fee, not in this total. Published fees per employee: €299 a month (one provider, EUR); US$99 to US$699 a month (17 providers, USD). We add a fee to the total only when at least 3 providers publish one in EUR, and we do not convert currencies.
Excludes statutory accident insurance, set by industry and risk class; the U2 levy varies by health insurer.
Cost of one employee: Germany vs neighbours
What an employer pays a year for one employee on €70,000: gross salary plus employer contributions, with each country’s contribution caps. No EOR fee is included.
Netherlands: the total includes pay owed on top of salary (Holiday allowance (vakantiegeld), 8%).Germany: Excludes statutory accident insurance, set by industry and risk class; the U2 levy varies by health insurer.Netherlands: Every levy line is charged on the salary plus the 8% holiday allowance (the allowance counts as wages for these levies), up to the yearly maximum contribution wage of EUR 79,409, which is the same for the employee insurances and the Zvw. The allowance itself is owed to the employee and is shown as its own line, not as a levy. The Whk percentage is set for each employer by the Tax Administration; 1.52% is the 2026 figure it gives a starting large employer. Small employers pay a lower Aof rate (6.27%), employees on fixed-term, on-call or unwritten contracts carry the high AWf rate (7.74%), and public employers pay a Ufo premium of 0.68% in place of AWf. Pension contributions are not included; most employees build a supplementary pension through the employer, and in some sectors the employer must place it with the industry pension fund.France: Excludes the work-accident rate (notified to each employer by the Carsat), the versement mobilité (a local transport levy for employers with 11 or more staff, rate set by the local authority), the Apec levy for cadres (0.036% employer share, up to 4 times the PASS), any forfait social, disability-employment levy or supplementary apprenticeship levy, the employer's share (at least 50%) of the compulsory complementary health plan, and any death-and-disability cover set by a collective agreement. The PASS (annual social-security ceiling) is €48,060 in 2026; the AGIRC-ARRCO tranches run to 1 and 8 times it. The CET applies to the whole salary up to 8 times the PASS once pay exceeds the PASS. The PEEC is assessed on the previous year's payroll. Below 50 staff the FNAL is 0.10% up to the PASS and there is no PEEC; below 11 staff the training contribution is 0.55%. Pay below about 3 times the SMIC also earns the RGDU reduction, which these lines do not apply.
Employer cost a year of one employee on €70,000: Germany and its neighbours
EU Blue Card minimum gross salary EUR 50,700 a year (EUR 45,934.20 for the reduced threshold).[33]
Minimum wage rises from EUR 13.90 to EUR 14.60 an hour.[7]
Pension insurance contribution ceiling planned to rise from EUR 8,450 to EUR 8,850 a month; cabinet decision of 7 October 2026, Bundesrat approval pending.[36]
Who can employ for you in Germany
All 20 EOR providers we track that cover Germany, ranked by our EOR score. How we score
Startups, growing companies and enterprises, the three segments Pebl writes a page for
Not for
Buyers who need a Contractor of Record: we list Pebl for contractor management, not COR
Top pro
Own SOC 2 Type 2 report and ISO/IEC 27001:2022 certificate, both on Pebl's security page
Top con
No live support channel named: Pebl lists its Alfie AI assistant, in-house experts and a Help Center; its pages say 24/7 support and do not say who answers
Does not say whether it employs in Germany through its own entity or a partner.
7.4Our score 7.4 of 10Limited dataOur EOR score
EOR price from
US$459per employee a month, billed annually
EOR countries160 claimed, 106 documented
Onboarding2–3 days
ServicesEOR · COR · Contractors · Payroll
Best for
Companies from startups to enterprises, going by Multiplier's segment pages
Not for
Buyers who need the deposit amount before signing: Multiplier calculates it per contract
Top pro
Own SOC 2 (Type I and II), SOC 3 and ISO 27001:2022 on its security page; the AWS certifications listed there are kept apart as the host's
Top con
The "from" prices assume an annual contract. Monthly EOR costs $499 on Core and $559 on Growth, about 11% of countries are priced differently, and compliance-mandated add-ons come on top of EOR and COR
Asks a refundable deposit of one month's salary per EOR employee.
7.4Our score 7.4 of 10Our EOR score
EOR price from
US$399per employee a month
Entity in Germany
Own entity
EOR countries180 claimed, 157 documented
Onboarding2–5 days
Deposit1 month
Minimum termNone
ServicesEOR · Contractors · Payroll
Best for
Companies from startups to enterprises: Playroll has pages for each, and its case studies include startups under 100 staff and mid-market firms of 100 to 1,000
Not for
Contractors who want to be paid other than through Payoneer, the only payout route Playroll uses
Top pro
Its own country pages document EOR hiring in 151 countries + 6 territories, against a claim of 180+
Top con
A refundable deposit of one month's salary per EOR employee; the unused part comes back within two months of the last working day, or once claims are settled if that is later
Enterprise teams and small and growing businesses (SMEs), in RemotePass's own words
Not for
Buyers who must review EOR contract terms up front: no EOR agreement is public
Top pro
EOR from $349 per employee a month with tax included; 13 of 20 other EOR prices in dollars start higher
Top con
No EOR agreement is public: the Terms say EOR runs under a separate Consultant Agreement "available on the Site", which we did not find. The public legal documents are the Terms, the Privacy Policy and the Acceptable Use Policy
Its Germany page states employment through its own entity.
6.6Our score 6.6 of 10Our EOR score
EOR price from
US$599per employee a month
EOR countries180 claimed, 151 documented
Minimum termNone
ServicesEOR · Contractors
Best for
A first hire in one new country or a team spread over many, at a startup, mid-market firm or enterprise (G-P has a page for each)
Not for
Buyers who rank EOR providers mostly by the monthly fee
Top pro
G-P claims EOR in 180+ countries; its Globalpedia country guides document 148 countries + 3 territories one by one
Top con
EOR from $599 per employee a month; 15 of 20 other EOR prices in US dollars that we compare start lower; volume discounts are offered but not quantified
Startups, scaling companies and enterprises, the three groups Native Teams writes for
Not for
Buyers who want to read the EOR or COR agreement before talking to sales: the terms of service are the only contract text online
Top pro
EOR from $99 per employee a month, below all 20 other per-employee EOR prices in USD we compare
Top con
The terms of service are the only contract text online. The EOR and COR agreements are not published, and the terms say a separate signed contract takes precedence
Small businesses, including teams under 10 employees, startups and enterprises: the segments Rippling has pages for
Not for
Buyers who want to compare an EOR price before a sales call
Top pro
Contractor onboarding in 185+ countries and payments in 50+ local currencies, per its contractor page; 160 countries + 2 territories are documented here
Top con
No price for EOR, contractor management or global payroll: the pricing page asks for a custom quote
Prices EOR in Germany from $599 per employee a month.
5.8Our score 5.8 of 10Our EOR score
EOR price in Germany from
US$599per employee a month
Entity in Germany
Own entity
EOR countries160 claimed, 146 documented
ServicesEOR · AOR
Best for
Enterprise-level companies, the audience Atlas's enterprise page names
Not for
Buyers who need a Contractor of Record: under Atlas's AOR the contract stays between the client and each contractor
Top pro
EOR in 141 countries + 5 territories documented here, against a claim of 160+ with wholly owned entities
Top con
At $599 per employee monthly, the EOR price is above 15 of the 20 other USD EOR prices we compare and equal to 4; local employer services, FX and benefits premiums are billed on top
The first Contractor of Record providers from the contractors page, which also covers the employee test, tax and how to pay.
The first 3 of 13 COR providers we score: those working in Germany first, each by our COR score. Working in Germany: 9 (1 by their COR coverage list, the rest inferred from their EOR coverage). How we score
The first global payroll providers from the payroll page, which also covers set-up, registrations and filings.
The first 3 of 14 global payroll providers we score: those working in Germany first, each by our global payroll score. Working in Germany: 11 (2 by their global payroll coverage list, the rest inferred from their EOR coverage). How we score
Enterprise teams and small and growing businesses (SMEs), in RemotePass's own words
Not for
Buyers who must review EOR contract terms up front: no EOR agreement is public
Top pro
EOR from $349 per employee a month with tax included; 13 of 20 other EOR prices in dollars start higher
Top con
No EOR agreement is public: the Terms say EOR runs under a separate Consultant Agreement "available on the Site", which we did not find. The public legal documents are the Terms, the Privacy Policy and the Acceptable Use Policy
€13.90 an hour. The rise to €14.60 from 1 Jan 2027 is already decided.
How much does an employee cost in Germany on top of salary?
Employer contributions add ≈22% on a €70,000 salary. Statutory accident insurance comes on top and depends on the industry and its risk class.
Is a 13th-month salary mandatory in Germany?
No. German law does not require a 13th salary.
Can I hire someone from outside the EU to work in Germany?
Yes, with a residence permit for work. Graduates with a qualifying job offer can apply for the EU Blue Card; skilled workers with academic or vocational training get a permit for any qualified employment.
