Germany is a major player in the global IT sector, situated at the heart of Europe. The country has a strong commitment to technological and engineering excellence, producing 40,000 engineering graduates annually and establishing itself as a leader in technological innovation.
Berlin, the capital, is a hub of tech innovation with state-of-the-art innovation centers, prominent tech conferences, and groundbreaking startups attracting talent from diverse tech fields, from software engineering to Industry 4.0 solutions.
The German IT industry is projected to grow at a CAGR of 7.8% from 2023 to 2028, thanks to its expansive ecosystem of tech enterprises and cutting-edge research facilities. With over 900,000 developers, Germany is a dominant force in the global IT service provider market.
The country's culture of precision and its workforce's commitment to both innovation and efficiency further solidify its position as a premier tech hub in Europe. Given its central location, renowned engineering expertise, and drive for tech advancement, Germany is an ideal destination for businesses seeking unparalleled software development expertise.
ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle
In Germany, employees typically receive their pay once a month, usually on or around the 25th of the month, though the exact pay date is determined by the individual employment contract.
Overtime work should adhere to the maximum working hours specified in the employee's contract or collective agreement. Two prevalent forms of overtime exist in Germany:
Employees in Germany have a statutory minimum annual leave entitlement of 20 working days for those working a standard 5-day week and 24 working days for those on a 6-day week, as established by the Bundesurlaubsgesetz, or the Federal Holidays Act. Starting in 2023, employees in Germany can roll over their unused vacation days for up to three years.
This paid leave entitlement is referred to as Urlaubsanspruch. The specific number of Urlaubstage (holiday days) is detailed in the employment contract or in a collective agreement (Tarifvertrag), which varies based on the industry. Notably, many collective agreements grant employees up to 30 working days of leave. Moreover, those working in hazardous or high-risk fields often receive extra vacation days.
Employees who have been with their employer for at least four weeks before taking sick leave are entitled to sick pay. For the initial six weeks of sickness, they receive 100% of their regular salary (known as Entgeltfortzahlung bei Krankheit oder Kur). After this period, the health insurance fund (Krankengeld) steps in, compensating the employee with between 70% and 90% of their regular wage for up to 78 weeks over a span of three years. This is specifically for cases where the incapacity is due to the same illness, starting from the initial day of sickness. The exact percentage of compensation depends on the specific level of the insured employee's fund.
Public and Provincial Holidays
There are 9 national holidays in Germany. Other additional holidays may apply depending on the region.
Generally, in Germany, the notice periods are set at four weeks. However, these periods are outlined in the employment contract or collective agreement and are determined based on the duration of the employee's service as follows:
Up to 2 years - 4 weeks (per the 15th or last day of the month)
2 to 4 years - 1 month
5 to 7 years - 2 months
8 to 9 years - 3 months
10 to 11 years - 4 months
12 to 14 years - 5 months
13th Month Bonus
In Germany, it's customary to receive a 13th-month salary, which is typically paid on the December pay date.
Setting up a separate business entity in every location where you plan to hire employees or a team is time-consuming and incurs high legal fees.
At the same time, navigating local labor laws and adhering to employee expectations can be a complex and challenging task, as is finding accurate and up-to-date employment information for all your potential hiring locations. Not to mention that tracking invoices and managing employee contracts through email and spreadsheets is messy and error-prone.
Compliance is critical in this context, and we must ensure that we follow local guidelines, particularly regarding taxes and legalities.
ALLSTARSIT streamlines the process by offering an integrated solution for finding and hiring employees, managing HR and payroll, and automating compliance across 20+ countries. All simple and hassle-free.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.
Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.
Managing tech equipment
Retention and risk analysis
Compensation revision & expense returns
1:1 meetings (180-degree)
Performance reviews & periodic surveys
Ongoing client and expert support
Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.
Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.
Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.
Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.
Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.
Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.
Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.
Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.
Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.