Insights
Germany Payroll Guide for Employers: Wage Tax, Social Insurance and 2026 Rates
Insights · By Chen ChunJie · Published 7 November 2026
German payroll combines wage tax withheld from ELStAM data with social insurance shared between employer and employee. This guide covers the 2026 rates and ceilings, levies, deadlines, the minimum wage, minijobs, leave and year-end.
Last reviewed in November 2026 against German Pension Insurance, health fund and Federal Ministry of Finance guidance.
Social insurance in 2026
| Branch | Total rate | Monthly ceiling |
|---|---|---|
| Pension | 18.6% | EUR 8,450 |
| Unemployment | 2.6% | EUR 8,450 |
| Health | 14.6% plus average add-on of 2.9% | EUR 5,812.50 |
| Long-term care | 3.6%, or 4.2% for childless employees | EUR 5,812.50 |
Employer and employee generally split contributions equally. Employers also pay U1, U2, the 0.15% insolvency levy and accident insurance.
Wage tax
Wage tax is withheld using ELStAM data, which sets the tax class. The basic allowance for 2026 is EUR 12,348. The solidarity surcharge of 5.5% only applies once annual income tax exceeds EUR 20,350, and church tax is 8% or 9% of wage tax for members.
Have a company in Germany and want payroll handled every month? See Payroll Outsourcing in Germany.
Deadlines and minimum pay
The wage tax return and payment are due by the 10th of the following month, and social insurance on the third-to-last banking day of the current month. The minimum wage is EUR 13.90 an hour in 2026, and the minijob limit is EUR 603 a month.
Leave, sickness and year-end
Employees get at least 20 days’ paid leave on a 5-day week and 6 weeks’ full sick pay. Statutory notice rises from 4 weeks to 7 months with service. At year-end, employers file the annual social insurance notification by 15 February and the wage tax certificate by 28 February.
FAQ: payroll in Germany
When is wage tax due?
By the 10th of the following month.
When is social insurance due?
On the third-to-last banking day of the current month.
What is the minimum wage?
EUR 13.90 an hour in 2026.
Want your Germany payroll handled every month?
We calculate pay, wage tax and social insurance and prepare the filings for your approval. Your company stays the employer.
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How we run your monthly payroll.
Contracts, leave and termination.