German work permit
Germany is one of Europe’s most attractive destinations for skilled professionals, offering a strong economy, excellent working conditions, and a comprehensive employee welfare system. Foreign employees working in Germany benefit from well-structured labor laws, social security coverage, and numerous entitlements such as paid leave, parental benefits, and health insurance. Understanding these rights and benefits is essential for anyone planning to work or relocate to Germany under a valid work permit.
Employee Benefits in Germany
Here are the five main types of insurance that make up Germany’s social security system.
Health Insurance
Comprehensive medical coverage for all employees
Unemployment Insurance
Financial support during unemployment periods
Nursing Care Insurance
Coverage for long term care needs
Pension Insurance
Retirement benefits and disability coverage
Accident Insurance
Protection against workplace accidents
Healthcare and Insurances
The employee can choose between different statutory health insurance. Only employees with an income exceeding the annual remuneration thresholds (62,550 EUR in 2020 / expected to be 64,350 EUR in 2021) are exempt. They can become members of private health insurance. In both cases, the contributions are shared equally by the employer and the employee.
Holidays and Annual Leave
The number of public holidays varies from one federal state to another across Germany; although the minimum is 10 (e.g. Berlin, Lower Saxony) there may be as many as 12 public holidays (Bavaria, Saarland).
Every employee is entitled to annual leave of 20 days, based on a 5 day week. This means that an employee can claim an annual leave of four weeks in a calendar year. However, most employers grant a longer annual leave; depending on the industrial sector, between 25 days and 30 days.
Maternity and Paternity Leave
Female employees are entitled to paid maternity leave, which is the time period 6 weeks before and 8 weeks after giving birth. The maternity leave after birth has been extended to 12 weeks in case of multiple births, premature births, and disabled children. Payments to the employee during this period are made partly by the statutory health insurance provider and partly by the employer.
After the birth of a child, both male and female employees are entitled to a maximum of three years’ parental leave per child. During this period, the employer is not obliged to make any payments to the employee. After the expiry of the parental leave, the employee returns to their previous position.
Under the Maternity Protection Act, pregnant employees as well as apprentices, interns, and students undertaking a mandatory internship enjoy special protection against dismissal during pregnancy and for four months after birth.
The employer is obligated to carry out a risk assessment not only for work performed by pregnant employees but for all work conducted within the company. Necessary measures to protect pregnant employees must be implemented immediately after the employer was made aware of a pregnancy, and the employee must be offered an opportunity to discuss (further) adjustments to her working conditions.
Other Required or Typically Provided Leave(s)
Any leave, other than the abovementioned statutory leaves (e.g. compassionate leaves, leave when moving) is subject to individual negotiations or is typically part of collective bargaining agreements/works council agreements.
Pensions: Mandatory and Typically Provided
The public retirement insurance system, company pension plans, and private individual retirement investments are the three pillars of the German pension system. Public retirement insurance has always been “pay as you go“, with the current pensions of the retired paid from the current premiums of the not yet retired. In view of demographic changes, pension payment levels are becoming difficult to maintain. Company pension plans have traditionally been designed to supplement statutory retirement insurance. Though company pension plans are not compulsory, they cover about three fifths of the working population. The third pillar, individual retirement investments, is becoming more important and is subsidized by the government. Retirement used to begin at age 65 but is now gradually being increased to age 67.
Requirements for a German Work visa
To obtain the visa, international professionals must meet the following requirements:
- A specific job offer in Germany for a position that requires either a university degree or qualified vocational training. Work visas are issued exclusively for qualified employment.
- A university degree or vocational qualification recognized in Germany and a license to practice for regulated professions
- Approval of the Federal Employment Agency for employment in this position
- Proof of health insurance
Germany Visa Categories
Skilled Worker Visa
Work in Germany based on your skills and qualifications.
Business & Investor Visa
Start or invest in a business in Germany
Family Visa
Join your family members in Germany
Student Visa
Study at recognized German universities and institutions
Visitor Visa
Visit Germany for tourism or short stays
Migration Visa
Relocate to another country for work, study, or business
Sole Representative Visa
Establish your overseas company’s presence in Germany