Best Employer of Record in Germany

Employer of Record in the Philippines Reviews

With an employer of record, businesses can hire, onboard, and pay top talent across the globe and remain compliant with multiple laws and regulations, all without setting up local entities. If you’re looking to hire talent in Germany, then using an EOR is a great way to enter that market fast and hassle-free. With Germany having strict rules surrounding employment, having an EOR ensures you remain compliant and avoid costly mistakes. We evaluate over 40 providers to find the best EORs in Germany. Read our methodology section to learn more.

RemotePeople – Best EOR with In-House Recruitment

RemotePeople allows businesses to hire employees in Germany via its employer of record service. The platform provides comprehensive social insurance compliance, handling health insurance contributions, pension insurance payments, unemployment & nursing care insurance, and accident insurance. From the first offer letter to the final pay slip, RemotePeople combines contract, payroll, and benefits administration into one platform with a dedicated account manager who coordinates ongoing employment support.

RemotePeople lets you hire in over 150 countries. It provides locally compliant contracts, competitive benefits, multi-country payroll, team management tools, equity management, and global mobility, complete with sponsorships, work permits, and end-to-end relocation management. With RemotePeople, you can also enjoy equipment provisioning, expense management, time & leave management, and reporting & analytics.

Book a Demo Visit RemotePeople’s website

RemotePeople features

• Legal Compliance & AÜG Licensing:
• Localized Payroll & Taxes:
• Comprehensive Benefits Management:
• Onboarding & Data Privacy:

How RemotePeople pricing works

RemotePeople offers two EOR plans and one service to help you change providers.

• EOR Flex: Starts at $199 /month/employee (no employee minimum)
• EOR Plus: Starts at $399 /month/employee (for 5+ employees)
• EOR Switch: Custom pricing

What markets does RemotePeople serve?

RemotePeople serves startups, SMBs, and enterprises that want compliant, full-lifecycle EOR infrastructure and global workforce hiring, local payroll, and benefits administration across 150+ countries.

Read our full RemotePeople review

Deel – Best for All-in-One Global HR

Deel’s EOR service enables hiring in 150+ countries, including Germany, providing a best-in-class EOR setup where the platform handles local laws, tax & benefits, and international payroll so you don’t have to. Deel is backed by local experts as well as built-in compliance protection, ensuring every step of the hiring process meets local labor laws and regulations.

Deel helps attract top talent by localizing employment contracts and recommending compliant wages, leave, and benefits for each hire. Onboarding is fast and easy with compliant offers, and contracts and other documentation can be signed and managed within Deel itself. Similarly, Deel puts reports into one location, covering costs, contributions, deductions, time off, and time worked, giving you the full picture of each hire.

Visit SiteVisit Deel’s website to get started.

Deel features

• Legal Compliance & AÜG Licensing: Holds an indefinite employee leasing license from the German Labour Agency, structures contracts to adhere to the 18-month limit, and manages all of the required German employment laws.
• Localized Payroll & Taxes: Handles all German payroll processes, wage calculations, income-tax withholdings, and more.
• Comprehensive Benefits Management: Handles mandatory statutory health insurance, pension insurance, accident insurance, and more to ensure compliance with German labor laws.
• Onboarding & Data Privacy: Allows businesses to onboard and hire without owning a local German subsidiary or GmbH, managing German labor laws, the Federal Vacation Act, social security contributions, and more.

How Deel pricing works

Deel’s EOR solution starts at $599 per month per user, with an unlimited number of users supported.

What markets does Deel serve?

Deel serves knowledge-intensive businesses of all sizes across all industries. Businesses looking for compliant EOR and global payroll services paired with extensive HR capabilities will benefit from working with Deel.

Read our full Deel review

G-P Name – Best for Large Enterprises

G-P, short for Globalization Partners, provides an EOR solution, allowing you to hire full-time employees in Germany. G-P holds the necessary AÜG license, ensuring compliance from day one. It takes on the legal responsibility and manages strict German employment laws so you can focus on directing your team’s day-to-day operations.

G-P handles payroll processing, leave requirements, statutory benefits, offboarding procedures, and payroll tax remittances. Additionally, it offers faster market entry, employee relocation services, mergers and acquisitions support, locally competitive benefits, and instant global visibility and insights.

Book a demo Visit G-P’s website

G-P features

• Legal Compliance & AÜG Licensing: Holds an official AÜG license and manages legal compliance under the German Temporary Agency Work Act, ensuring all strict employment laws are met.
• Localized Payroll & Taxes: Calculates and processes pay in local currency, handles statutory tax deductions, manages mandatory German social insurance contributions, and ensures all employment contracts strictly adhere to German labor and tax laws.
• Comprehensive Benefits Management: Configures localized employee benefit packages that offer benefits like Statutory health insurance, pension insurance, unemployment insurance, long-term care insurance, and more.
• Onboarding & Data Privacy: Drafts and executes compliant local contracts while ensuring data privacy by adhering to the European Union’s GDPR and the German Federal Data Protection Act (BDSG).

How G-P pricing works

G-P’s EOR platform’s pricing starts at $599 per employee per month, and it integrates with your existing systems via custom APIs.

What markets does G-P serve?

G-P serves businesses of all sizes, from startups to enterprises, and is best for organizations wanting to expand internationally without having to establish local entities in multiple countries.

Read our full G-P review

Oyster – Best EOR with Contractor Management

Oyster allows you to hire in 180+ countries, including Germany, in as little as 48 hours with the automated platform that makes it fast and easy to onboard, manage, and pay your team in Germany. Oyster works with country-specific specialists who will guide you and your team throughout the onboarding process. Additionally, it lets you view statutory requirements so you can compare your offer letter against local benchmarks to stay compliant and competitive.

With Oyster, you can ensure your team in Germany is paid on time in their local currency with all taxes deducted. It simplifies payroll, letting you easily manage bonuses, allowances, expenses, and salary adjustments in just a few clicks. Finally, Oyster provides a clear view of all payroll costs within the app where you can also review, approve, and track time-off requests.

Visit SiteVisit Oyster’s website to get started.

Oyster features

• Legal Compliance & AÜG Licensing: Ensures legal compliance for employment laws and manages temporary employee leasing with proper licensing and contracts.
• Localized Payroll & Taxes: Runs monthly payroll cycles, calculating and remitting mandatory deductions, including contributions to the social security system.
• Comprehensive Benefits Management: Offers mandatory social security contributions, including public health insurance, long-term care insurance, pension insurance, unemployment insurance, and accident insurance.
• Onboarding & Data Privacy: Manages structured employee onboarding, data collection, and integration into local employment standards, ensuring strict data privacy regulations are met.

How Oyster pricing works

Oyster offers its EOR service for $699 per month per employee, with annual discounts available, ensuring multi-country payroll, end-to-end support by local experts, onboarding & offboarding specialists, automated expenses, time-off, and reports.

What markets does Oyster serve?

Oyster serves small to medium-sized businesses with its full-time employer of record (EOR) service, offering global contractor support and hiring capabilities across over 180 countries.

Multiplier – Best for Fast Employment

Multiplier offers an EOR that allows you to hire and onboard employees quickly and compliantly in 150+ countries, offering a compliance-focused platform with human-first support and dedicated managers. Multiplier works with a network of local experts, including in Germany, to help businesses navigate the strict and ever-changing compliance landscape, keeping you legal every step of the way.

Multiplier helps you offer high-quality and compliant benefits, from health to dental care. Additionally, Multiplier streamlines time-consuming HR tasks, making it easy to manage expenses, timesheets and pay incentives in a few clicks. Plus, with data-driven reports covering topics like headcount, gross-to-net, and cost center reports, you can better plan for the future and empower your team.

Visit SiteVisit Multiplier’s website to get started.

Multiplier features

• Legal Compliance & AÜG Licensing: Owns its own German entity to legally manage local payroll, withhold social security, and taxes while holding an AÜG labor leasing license to legally employ staff on your behalf.
• Localized Payroll & Taxes: Handles payments, German-compliant payslips, and statutory breakdowns while managing tax calculations, social security contributions, and automated compliance updates.
• Comprehensive Benefits Management: Provides comprehensive benefits management for statutory leave, health insurance, pension, and more, as well as supplemental benefits management.
• Onboarding & Data Privacy: Generates localized contracts and conducts onboarding according to Germany’s strict regulations, ensuring all data privacy standards are met.

How Multiplier pricing works

Multiplier offers three pricing plans for its EOR solution, with monthly and annual billing available. The information below is for monthly billing.

• Core: Starts at $499/month/employee
• Growth: Starts at $559/month/employee
• Enterprise: Custom pricing

What markets does Multiplier serve?

Multiplier is best for mid-size companies, scaleups, and growing teams looking to hire, pay, and manage international employees and contractors without setting up local entities.

Read our full Multiplier review

Compare the Best UK Employer of Record Side-by-Side

What is an Employer of Record in Germany??

An employer of record (EOR) in Germany is an organization that hires employees on your behalf, becoming the legal employer. When you work with an EOR in Germany, you don’t have to spend the time and money to establish a local entity. These providers also typically handle HR services, pay your employees, and manage mandatory filings with the German tax and labor authorities.

Because Germany has the third-largest GDP in the world along with a skilled and well-educated workforce, many business owners have found the country an attractive source of employees. However, under German law, the EOR model is often classified as employee leasing, which comes with some strict laws and also leasing limits, typically a maximum of 18 months. These laws are regulated by the German Temporary Employment Act: Arbeitnehmerüberlassungsgesetz, often abbreviated as AÜG.

Employer of record services operating in Germany will have an AÜG license and will ensure that each employee is hired according to the country’s regulations, managing requirements around areas like minimum wage, dismissal protection, annual leave, working hours, and more.

How EORs Handle Compliance with German Labor Laws

Employer of record platforms handle compliance with German labor laws by acting as the official legal employer of your workers through a local German entity or licensed structure. EORs take on the full responsibility for statutory obligations while your company manages the employee’s day-to-day.

EORs in Germany handle the following requirements:

• Employee Leasing Regulation & Licensing—Ensures workers are classified correctly, hold the correct licensing, and adhere to employment leasing limits.
• Locally Compliant Employment Contracts—Contracts include mandatory clauses, listing gross salary in Euros, working hours, probationary periods, statutory notice periods, and minimum annual leave.
• Payroll, Taxes, and Social Security—Runs payroll on time (usually monthly) with the proper taxes and contributions withheld.
• Working Hours, Leave, and Overtime—The standard workweek in Germany is 40 hours. Most places have 35 – 38-hour weeks through collective bargaining agreements. Employees can’t work more than 8 hours a day or 48 hours per week, and overtime must be stated in the contracts. Additionally, employees receive paid time off for public holidays, maternity leave (paid full salary), parental leave (up to 3 unpaid years per child per parent), and more.
• Workplace Protections & Co-Determination—Enforces strict dismissal protection laws and monitors German labor court standards and company-level co-determination rules where applicable.

Employer Contributions in Germany

In Germany, employers are required to pay statutory social security contributions. These are equal to roughly 20% – 22% on top of an employee’s gross salary. Contributions are split across pension, health, care, unemployment, and accident insurances.

Because an employer of record acts as the legal employer in Germany, the provider will calculate, withhold, and remit all mandatory and supplemental employer contributions. The EOR will also manage payroll and tax withholdings and account for any supplementary pension plans and contribution ceilings.

After calculating all contributions, the EOR pays the employee and covers the local social security contributions upfront, then invoices your company for the total cost (gross salary + employer social security burden + EOR service fee) in a single consolidated bill.

Benefits of Employer of Record in Germany

Using an employer of record in Germany is extremely beneficial, allowing you to hire and onboard without the time, expense, and complexity of setting up a local legal entity.

Key Benefits of an EOR in Germany:

• No need to establish a local entity
• Streamlines market entry
• Navigates complex German regulations for you
• Avoids misclassification
• Automates payroll & tax withholding
• Manages statutory benefits & leave
• Ensures IP protection
• Offers immigration support

Working with an employer of record allows you to hire top talent internationally, globally expanding your business without having to establish entities in each country or juggle multiple and differing laws. Whether you’re hiring in Germany, the UK, India, the Philippines, and anywhere else, EORs can keep you fully compliant.

How Much Does an Employer of Record in Germany Cost?

The cost of an employer of record in Germany ranges between roughly $500 and $700 per month per employee, but some vendors offer full EOR services for as little as $200. RemotePeople offers plans starting at $199 per employee per month, with higher tiers starting at $399 /month/employee. The other vendors, such as Multiplier and Oyster, have prices ranging from $499 to $699 per month for each employee.

On top of the EOR platform fee, you can also expect to pay the employee’s gross salary and mandatory local employer social security contributions, which will increase the overall cost of an EOR in Germany.

Employer of Record in Germany FAQs

Do EOR providers in Germany need an AÜG license?

Yes, EOR providers in Germany are required to have an AÜG license because the employment model is considered employee leasing under German law, which requires an official permit from the Federal Employment Agency.

What challenges might arise when using an employer of record in Germany?

Some challenges you may encounter when using an EOR in Germany include having to ensure all mandatory licensing requirements are met, strict local labor protections, and the 18-Month Leasing Rule, which limits leasing employees to a maximum of 18 months at the same end-client company.

Is €70,000 a good salary in Germany?

Yes, €70,000 is generally considered a good salary in Germany as it sits above the current national median full-time salary of around €54,066. However, salary expectations may differ between industries and locations, so be sure to talk with your EOR provider about what is considered a good salary in Germany.

How We Chose the Best Employer of Record in Germany

We made a list of 43 employer of record services on the market and identified those that operate in Germany. From there, we chose 5 vendors, focusing on their features, served markets, brand reputation, pricing, and more.

With each being worth 25% of our total score, we scored each listed employer of record on a scale of 1 (poor) to 5 (excellent) across the following criteria:

• Variety of features: We looked for EOR providers that offered features such as legal compliance & AÜG licensing, localized payroll & taxes, comprehensive benefits management, onboarding & data privacy support.
• Pricing and transparency: We only chose vendors that offered clear and transparent pricing, and compared those costs to industry standards.
• Onboarding and support: Our review team chose companies that offered onboarding services and ongoing support to their users.
• Brand reputation: The B2B Reviews team determined each vendor’s reputation based on customer review data from third-party review sites, choosing those that had a majority of positive reviews.