Guide/Germany
Deutschland

German payroll compliance, in plain English.

What every employer in Germany has to get right — Lohnsteuer and ELStAM, the social-insurance branches, minimum wage, payslips, leave and sick pay — answered clearly and linked back to the source: the German federal authorities.

Ledra Pay in Germany — the country page →

Employee compliance — the first guides

The German guide is being built the same way Australia's was: written against government sources, adversarially verified underneath, and corrected as the law moves. The first wave is live below; the deep operator research (registrations, ITSG certification, payment rails) is in flight and will follow as its own section.

Minimum wage (MiLoG)

€13.90/hour in 2026, who it covers, the §17 record duties — and the €14.60 rise already fixed for 2027.

Payslips & the Entgeltbescheinigung

§108 GewO Textform, the EntgBV line items, and the retention clocks — 6-year Lohnkonto, 8-year Belege, audit-anchored SV records.

Leave & sick pay (BUrlG / EntgFG)

24 Werktage minimum (20 on a five-day week), six weeks of employer-paid sick pay at 100%, the Krankengeld handover — and the U1 refund for small employers.

Lohnsteuer, ELStAM & tax classes

The withholding duty, what ELStAM gives you at hire, the six classes, and why the PAP makes software recompute mid-year.

Minijobs & Midijobs

The 603€ threshold and its dynamic formula, the 30% flat-rate surprise, and the Übergangsbereich mechanics to 2.000€.

Social insurance, explained

KV · PV · RV · AV — who pays what, the 2026 ceilings, minijob flat rates, and the employer-only Umlagen.

The compliance checklist

The things that have to be in place to run payroll legally in Germany. Each item links to a full explainer. Want the printable, standalone version? See the payroll setup checklist.

For each new employee
1

Steuer-ID and birthdate for ELStAM, the Versicherungsnummer, and the employee's Krankenkasse — with the statutory fallbacks if any are missing.

Read →
2

The Nachweisgesetz day-one tier — now allowed electronically with receipt confirmation, except the §2a sectors.

Read →
3

Within six weeks or the first payroll run — and on day one (Sofortmeldung) in the eleven listed sectors.

Read →
4

Retrieve the tax class, children factors and church-tax attribute — class VI fallback if the data isn't there.

Read →
5

At or under 603€/month the flat-rate world applies; 603,01–2.000€ is the Übergangsbereich.

Read →
Every pay run
6

The statutory minimum plus the §17 record duties (7-day rule, 2-year retention) where they apply.

Read →
7

The EntgBV line items in Textform — and keep the retention clocks running.

Read →
8

Present at each Einzugsstelle by 0:00 on the fifth-last bank working day; contributions due the third-last.

Read →
9

Monthly, quarterly or annually by threshold — electronically via ELSTER.

Read →
Your setup
10

DGUV Unternehmensnummer before the Betriebsnummer — then the Finanzamt and ELSTER.

Read →
11

Uncertified software cannot legally transmit to the Annahmestellen at all.

Read →
12

SEPA for net wages (pain.001 — the old profile sunsets November 2026) and pull-or-push for contributions.

Read →

Start here

The journey views: what happens, in order, from the first hire to the last payslip.

The setup checklist

Sixteen numbered steps from no entity to first compliant payslip — registrations in the verified order, DGUV before BA.

Hire to exit: the lifecycle

Five stages on one stepper — what data you collect and what payments you make, from Nachweisgesetz day one to the §623 wet-ink goodbye.

Timelines & calendars

The same deadlines, two ways: the month as your payroll team runs it, and the year as the law schedules it.

The German payroll month

Every clock in order — Beitragsnachweis, contributions, Lohnsteueranmeldung — with a worked January 2026 strip.

The German payroll year

The January cliff, the February duo, the autumn PAP window — JAN→DEC with the 2027 changes pre-armed.

For global operators

Running German payroll from outside Germany — what attaches to you, what doesn't, and the registration and lodgement machinery, written from our adversarially-verified research corpus.

Run German payroll from overseas

The asymmetry every foreign employer hits: social insurance is inescapable, wage-tax withholding usually isn't — and the §38(3a) third-party route.

Registrations & employer IDs

Unternehmensnummer before Betriebsnummer, the Finanzamt side, ELStAM and the W-IdNr transition, ELSTER certificates.

What an employee really costs

The employer's halves, the ceilings, the employer-only Umlagen — and a worked 1.000€ illustration (≈22.3% on top in 2026).

Software certification

The ITSG Systemuntersuchung, the annual QK treadmill, and why uncertified software can't even talk to the Annahmestellen.

Paying employees

SEPA & pain.001 (November 2026 sunset!), instant payments & VoP, and the pull-vs-push choice for contributions.

Who governs German payroll

Finanzamt, ~90 Krankenkassen as collectors, DRV audits, Zoll enforcement — the full regulator map.

Statutory lodgement

Lohnsteueranmeldung thresholds, the Beitragsnachweis clock, the DEÜV cycle and the two 16-February duties.

How Ledra Pay helps

Compliant German payroll, as infrastructure

Ledra Pay runs governed gross-to-net for Germany — Lohnsteuer, Solidaritätszuschlag, church tax and the social-insurance branches — behind one embedded API, with an auditable evidence chain behind every figure.

See German payroll →
General information only — not legal or tax advice. This guide explains common German payroll rules in plain terms and may not reflect the latest changes or your specific circumstances. Tax advice in Germany is reserved to the advising professions — always confirm with the relevant authority (BMF, your Krankenkasse, the Minijob-Zentrale) or your Steuerberater.