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The best Employer of Record (EOR) services in Germany help you hire top local talent quickly and compliantly—without the hassle of establishing a legal entity.

Expanding into Germany comes with complex employment laws, strict social security obligations, and detailed compliance requirements. The right EOR partner simplifies this process by acting as your legal employer, managing everything from contracts and payroll to taxes and reporting under the Federal Ministry of Labour and Social Affairs (BMAS).

Drawing on my experience researching and writing about global HR and compliance solutions, I’ve curated a list of the best EOR services for hiring in Germany. In this guide, you’ll find trusted providers that make it easy to onboard employees, stay compliant, and focus on growing your business internationally.

Market Details for Hiring in Germany

  • Capital City: Berlin
  • Currency: Euro (€, EUR)
  • Payroll Frequency: Monthly
  • Official Language: German
  • Approx. Population: 83 Million
  • Public Holidays: 9 (plus regional variations)

Why Hire Employees in Germany?

Germany’s strong educational system ensures a steady stream of highly qualified graduates, especially in STEM fields. Germany's talent marketplace is well-known for its engineering and technological expertise, particularly in the automotive and manufacturing sectors. Plus, its IT sector is thriving, with a significant talent pool in software development, cybersecurity, and data analytics.

Germany’s innovative ecosystem, driven by a vibrant start-up culture in cities like Berlin and Munich, attracts skilled professionals in tech, finance, and creative industries.  Furthermore, Germany’s leadership in renewable energy attracts experts in sustainable energy solutions and green technology. 

In addition to the technical depth of Germany’s workforce, its strategic location in Europe also makes it an attractive location to hire new talent since it lends easy access to other major European markets.

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Best Employer of Record in Germany: Pricing Comparison Chart

This comparison chart summarizes pricing details for my top Employer of Record selections for hiring staff in Germany to help you find the best EOR service for your budget and business needs.

Reviews of the Best EOR Services in Germany

To make your search easier, I’ve reviewed my top 10 EOR picks for hiring in Germany, highlighting what each one offers and how they support HR teams. You’ll also find 10 more providers listed below for even more options to explore.

Best for end-to-end employee management

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.5/5

G-P is ideal for companies that want to delegate every stage of the employment process—from compliant onboarding to payroll and offboarding—while maintaining full visibility through a single platform.

Why I Picked G-P

I picked G-P because it covers the whole employment lifecycle under German labor law. You can hire employees in days through its locally established entity, while G-P handles employment contracts, payroll in euros, tax withholding, and statutory benefits such as health insurance and pension contributions.

I like that it also manages employee changes like promotions, leave, and terminations, ensuring compliance at every step. Plus, its centralized dashboard lets you oversee global teams and track employment data without juggling multiple systems. This makes G-P especially valuable if you’re expanding into Germany as part of a broader international growth plan.

G-P Key Services

Here are a few key services worth noting:

  • Localized employment contracts: Drafted in compliance with German labor law and collective agreements.
  • Full-cycle HR administration: Handles onboarding, payroll, benefits, and offboarding in one place.
  • Centralized dashboard: View employment status, costs, and compliance updates across countries.
  • Employee benefits management: Administers statutory and optional benefits such as insurance, bonuses, and leave allowances.

G-P Integrations

Integrations include SAP SuccessFactors, Workday, ADP Workforce Now, BambooHR, Greenhouse, UKG Pro, Microsoft Dynamics 365, QuickBooks, and Xero.

Pros and cons

Pros:

  • Extensive global coverage in over 180 countries
  • In-country experts provide guidance on local employment laws and practices
  • Combines payroll, benefits, and compliance management in one platform

Cons:

  • Lacks advanced HR functionalities like performance management
  • Global mobility services are paid add-ons

Best AI-driven EOR platform

  • Free trial available
  • From $579/month
Visit Website
Rating: 4.9/5

Borderless AI is built for companies that want to hire in Germany with speed and accuracy. Its key differentiator is the AI-driven infrastructure that automates contracts, payroll, and compliance so your HR team can onboard global talent in days, not weeks.

Why I Picked Borderless AI

I picked Borderless AI because it’s the first Employer of Record built entirely around AI automation. Instead of relying on manual review or partner intermediaries, its AI engine drafts compliant German employment contracts, calculates payroll taxes, and monitors changing regulations in real time.

This matters when hiring in Germany, where labor laws and benefits are complex and frequently updated. I also like the built-in HRGPT assistant, which gives your team instant, country-specific guidance on taxes, benefits, and onboarding. Combined with transparent flat-rate pricing and zero upfront fees, it makes Borderless AI a cost-efficient option for fast-growing global teams.

Borderless AI Key Services

Here are some standout services worth highlighting:

  • AI-generated contracts: Drafts fully compliant German employment agreements in minutes, customized by role and region.
  • Real-time compliance tracking: Continuously monitors local labor and tax law changes to keep every hire compliant.
  • Euro-based payroll: Automates payments, tax withholdings, and statutory contributions through Borderless-owned entities.
  • HRGPT assistant: Offers instant, AI-powered answers to HR, payroll, and compliance questions in plain language.

Borderless AI Integrations

Integrations include Slack, Microsoft Teams, QuickBooks, Xero, BambooHR, Personio, Deel, and Workday.

Pros and cons

Pros:

  • AI-driven platform reduces manual admin and legal risk
  • HRGPT assistant supports HR teams with instant answers
  • Offers clear, flat-rate pricing

Cons:

  • Reporting and analytics tools are not extensive
  • Does not offer direct recruitment or applicant tracking functionalities

New Product Updates from Borderless AI

Borderless AI is Now SOC 2 Type II Certified
Borderless AI's new Trust Center gives visibility into their security posture and data protection protocols.
July 27 2025
Borderless AI is Now SOC 2 Type II Certified

Borderless AI announced its SOC 2 Type II certification, emphasizing security and data protection with a new Trust Center and plans for ISO 27001 certification. More details are available at the Borderless AI Blog.

Best for compliance with German labor laws

  • Free demo available
  • $99/employee/month
Visit Website
Rating: 4.9/5

Native Teams enables companies to hire employees in Germany without opening a local entity. It’s particular focus is helping clients stay fully compliant with German labor laws—covering contracts, payroll, and social security—while keeping control over their team’s daily operations.

Why I Picked Native Teams

I picked Native Teams because it’s purpose-built for compliance with Germany’s complex labor requirements. The platform acts as your legal employer in Germany, managing everything from contract drafting and tax withholdings to social-security submissions—ensuring every hire meets local legal standards.

You get transparency through a centralized payroll dashboard that shows salary breakdowns, contributions, and benefits in real time. I also appreciate how it supports compliant documentation and record-keeping, helping you avoid common compliance pitfalls. This makes it ideal for global companies expanding into Germany who want legal certainty without needing to navigate German bureaucracy themselves.

Native Teams Key Services

Here are some key services worth highlighting:

  • Localized Employment Contracts: Pre-built German contracts aligned with local labor law requirements.
  • Payroll & Tax Compliance: Handles payroll, tax deductions, and statutory social-security contributions on your behalf.
  • Global Coverage (85+ Countries): Expand in Germany or scale into other markets using one EOR platform.
  • Compliance-Ready Dashboard: View German salary structures, benefits, and tax details from a single interface.

Native Teams Integrations

Integrations include QuickBooks, Xero, Slack, Microsoft Teams, Deel, Remote Desk, and API export options for connecting payroll data to accounting and HR systems.

Pros and cons

Pros:

  • Specializes in German labor-law compliance and documentation
  • Offers localized payroll calculators for accurate salary and tax computations
  • Provides compliant employment contracts and documentation

Cons:

  • Covers fewer countries than some competitors
  • May not offer advanced HR tools beyond essential employment features

New Product Updates from Native Teams

Native Teams Introduces Entity Management Solution
The interface for onboarding a new legal entity in Native Teams.
September 21 2025
Native Teams Introduces Entity Management Solution

Native Teams unveils an all-in-one solution to streamline business entity management and reduce costs. For more information, visit Native Teams's official site.

Best for offering local health benefits

  • Free trial + demo available
  • From $29/month
Visit Website
Rating: 4.8/5

If you’re looking to expand your team into Germany without setting up a local entity, Deel gives your business a straightforward path. It handles the local employment and payroll through its German entity so you can hire quickly and focus on your team rather than HR red tape.

Why I Picked Deel

I picked Deel because their ownership of a German-based employer entity means you bypass months of entity-set-up and hefty legal fees. Their service manages German-specific payroll, social security and contract obligations—so you’re covered under German employment law without doing it all yourself.

One of the standout parts of their USP is the ability to offer local German benefits (health insurance, pension contributions, etc.) through the same platform, helping you meet market expectations for German employees.

I like that you can get an employee onboarded in about four days in Germany, which is much faster than building a local presence from scratch. With a transparent cost structure and flat-management fee, you get clarity on your employer-costs in Germany (typically ~20-22% of gross salary) so you can budget with confidence.

Deel Key Services

Here are some standout services worth highlighting:

  • Local entity employment: Deel’s own German entity becomes the legal employer on record, handling contracts, payroll and compliance.
  • Rapid onboarding: Average hire starts in ~4 days for Germany, cutting time compared to building your own legal entity.
  • Pre-built German benefits support: Includes health insurance, pension, unemployment and long-term care options via the same dashboard.
  • Transparent cost and compliance tracking: Clear quoting that shows employer social costs (~20-22% of salary) and a flat dealer management fee.

Deel Integrations

Integrations include popular HRIS platforms, payroll systems, global benefits providers, contractor-management tools and visa/immigration services.

Pros and cons

Pros:

  • Comprehensive employee benefits
  • Local compliance expertise
  • Fast onboarding process

Cons:

  • Potential complexity for first-time users
  • Limited customization options

New Product Updates from Deel

Introducing Deel AI Workforce
Dashboard displaying Deel's Hiring Guru performance.
August 24 2025
Introducing Deel AI Workforce

Deel has launched the AI Workforce, a set of specialized agents designed to handle repetitive HR, payroll, and compliance tasks with speed and accuracy. These AI agents don’t just assist—they execute tasks from start to finish. For more information, visit Deel's official site.

Best for budget-conscious remote team expansion

  • Free demo available
  • From $25 - $199/user/month
Visit Website
Rating: 4.5/5

RemoFirst is ideal for budget-conscious teams looking to expand into Germany without setting up a local entity. It helps you legally hire, pay, and manage employees while staying compliant with Germany’s strict labor laws at a transparent, affordable rate.

Why I Picked RemoFirst

I picked RemoFirst because it offers one of the most affordable ways to hire employees in Germany without the cost or complexity of creating a local subsidiary.

I like that their pricing starts at just $199 per employee per month—making it a smart option for startups or small teams testing new markets.

You also get localized contracts, work-permit support, and dedicated account managers who help you stay compliant with German labor laws. Combined with quick onboarding and multi-currency invoicing, it’s a strong fit for teams scaling internationally on a budget.

RemoFirst Key Services

Here are a few key services worth highlighting:

  • Localized contracts & compliance: Automatically generates German labor–law–compliant contracts and ensures correct worker classification.
  • Transparent pricing model: Fixed per-employee rate with no hidden fees or setup costs.
  • Payroll & multi-currency payments: Pay global employees in their local currency while you’re invoiced in USD, EUR, or GBP.
  • Visa and equipment support: Simplifies onboarding with visa processing and delivery of IT equipment to remote staff.

RemoFirst Integrations

Integrations include Wise (TransferWise), Deel data exports, BambooHR, Rippling, QuickBooks, Xero, Gusto, Oyster HR, and Remote.com.

Pros and cons

Pros:

  • Supports equipment provisioning and immigration paperwork
  • Affordable EOR option for small or growing teams
  • Comprehensive compliance management

Cons:

  • Dependence on third-party providers for some services
  • Service availability may vary by region

New Product Updates from RemoFirst

RemoFirst's Enhancements in Team Management and Notifications
RemoFirst now lets you create custom teams with unique names.
August 24 2025
RemoFirst's Enhancements in Team Management and Notifications

RemoFirst has introduced new enhancements in team management and notification preferences, allowing more customization and efficiency. For more information, visit RemoFirst's official site.

Best for 24/5 dedicated support

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 5/5

TopSource Worldwide is an employer of record (EOR) service provider that handles all legal employment responsibilities for companies hiring in countries all over the world, including Germany.

Why I picked TopSource Worldwide: It offers in-depth expertise in German employment law, including compliance with labor leasing legislation (Arbeitnehmerüberlassung) and the requirement to hold an AÜG license issued by the German Labour Ministry. This is essential if you’re hiring in Germany through a labor leasing model—TopSource ensures your leased employees receive equal treatment and don’t exceed the country’s strict 18-month employment limit. 

Beyond basic compliance, TopSource combines its EOR offering with 24/5 dedicated support, which includes strategic HR and global expansion support. You get access to on-demand conversations with global employment law and benefits experts, quarterly global talent audits to help guide hiring and structure, and a direct phone line for employer support. 

TopSource Worldwide Key Services:

Other features include built-in support for processing compliant German employment contracts and managing salary disbursements in line with local norms. TopSource also registers employees with the appropriate German authorities for income tax and social contributions, and handles payment deadlines and employee documentation so you don’t have to become an expert in local payroll rules.

Employers hiring in Germany via TopSource are also protected under the right licensing for labor leasing, meaning workers are hired under compliant models with the appropriate terms and durations. They even support employment verification, contract accuracy, and the ongoing compliance audits needed to stay aligned with German labor law.

Pros and cons

Pros:

  • Service includes direct access to local experts
  • Strategic HR guidance available for expansion planning
  • Wide country coverage with 180+ supported markets

Cons:

  • No integrations with popular HRIS platforms
  • Limited reporting or automation features compared to tech-driven platforms

Best for quick employee onboarding

  • Free demo available
  • From $20/user/month (billed annually)
Visit Website
Rating: 4.7/5

Multiplier is an employer of record company that provides HR and global payroll services to businesses, allowing them to outsource these responsibilities to a single provider. You can use their services to hire and manage employees based in Germany and comply with changing labor laws and tax policies.

Why I picked Multiplier: Multiplier helps businesses quickly and easily onboard new employees, manage their payroll and benefits, and ensure compliance with local laws and regulations. Their EOR services are very fast, with the ability to employ new talent in less than 24 hours once you've decided which candidate you'd like to hire. Their 4-step onboarding process is also user-friendly, providing a good experience for your new employees. 

Multiplier Key Services:

Their EOR services include payroll processing, tax compliance, benefits administration, and worker's compensation. Their team of local experts can also offer support with employee benefits management, including health insurance, retirement plans, and other perks that are specifically tailored to the German market. This service helps attract and retain top talent by offering competitive benefits packages. 

By outsourcing your core HR responsibilities to Multiplier, you can reduce your exposure to the legal and financial risks associated with employing workers in Germany.

Pros and cons

Pros:

  • Excellent customer service
  • User-friendly platform
  • Comprehensive compliance support

Cons:

  • Dependence on third-party benefits providers
  • Limited customization options

Best for managing social security contributions

  • Free demo available
  • From $549/talent/month

Workmotion is a global Employer of Record (EOR) platform that enables companies to hire and manage employees in over 160 countries, including Germany, without establishing a local entity. It helps businesses expand internationally by managing employment contracts, payroll in euros, and compliance with German labor laws. The platform’s automation tools simplify HR management, payroll processing, and onboarding, making it easier for organizations to grow global teams confidently.

Why I picked Workmotion: I picked Workmotion because it provides comprehensive compliance coverage for hiring in Germany. The platform manages local employment regulations, social security contributions, and tax requirements, so you don’t need to worry about German legal complexities. Its quick onboarding feature helps you get employees started quickly, and its global payroll ensures accurate, on-time payments in local currencies. Transparent pricing and responsive customer support add to its appeal for growing international teams.

Workmotion Key Services:

Key services include global hiring support in 160+ countries, euro-based payroll management, automated onboarding, and compliance with German labor and tax laws. Workmotion also manages employee benefits, expense reporting, and freelancer-to-employee conversion to mitigate compliance risks. The platform integrates with popular HR systems like BambooHR, Workday, HiBob, SafetyWing, and Personio.

Pros and cons

Pros:

  • Strong compliance automation tools
  • Multi-country payroll processing
  • Easy global onboarding and setup

Cons:

  • There may be onboarding complexity in new markets
  • Pricing may be steep for smaller businesses

Best for hands-on support in Germany

  • Pricing upon request

FMC Group is a German-owned company that specializes in providing services related to international employee management. Acting as an Employer of Record (EOR) in Germany, they enable businesses to hire employees without needing to establish a local entity.

Why I Picked FMC Group: I picked FMC Group because of their expertise in managing all employment-related responsibilities, which include compliance with German labor laws, payroll management, and employee benefits administration. This means you can focus on your core business activities while they handle the complexities of HR and legal compliance. Their service ensures that your team in Germany is managed according to local regulations, giving you peace of mind.

Additionally, FMC Group stands out due to their structured process that includes consultation, talent selection, planning meetings, onboarding, and ongoing employee management. This comprehensive approach ensures that you maintain functional control over your employees while they handle the administrative and legal aspects. It's a service designed to make your expansion into Germany as smooth as possible.

FMC Group Key Services:

FMC Group provides Employer of Record (EOR) services in Germany under the required AUG license (Erlaubnis zur Arbeitnehmerüberlassung), allowing you to hire employees locally without setting up a legal entity. They also offer optional recruitment support and can arrange company cars—especially helpful for sales and business development roles.

No specific integrations are available for FMC Group.

Pros and cons

Pros:

  • Client-led or FMC-led talent selection
  • Complete local law compliance

Cons:

  • Client has limited HR access
  • No published integrations or system APIs
  • EOR available in over 50 countries

Best for hiring and paying talent in Germany

  • Free demo available
  • From $199/employee/month or $19/contractor/month
Visit Website
Rating: 4.6/5

Skuad is a comprehensive global HR platform designed to simplify international hiring, payroll, and compliance management for businesses. It enables companies to hire and manage employees and contractors in over 160 countries, including Germany, without the need for local subsidiaries. When you hire them as your German EOR partner, they’ll manage the whole hiring process on your behalf, including creating employment agreements and other legal documents.

Why I picked Skuad: As part of their EOR service, Skuad offers remote onboarding and can facilitate payroll in multiple currencies. This includes the management of invoices as well as payroll automation. Skuad also ensures compliance with local regulations and labor laws.

Skuad Key Services:

Skuad's EOR services include employee benefits, time-off tracking, and managing tax compliance. It also offers coverage for your copyrights, trademarks, and any other sensitive IP projects. As part of their global hiring service, they will even stickhandle all the required documentation on your behalf, including work permits and visas for your new hires as well as their dependents. 

Beyond that, Skuad can also help you distribute computer equipment to your new employees, and track company assets like phones and other IT devices.

Pros and cons

Pros:

  • User-friendly platform
  • Extensive HR support
  • Comprehensive compliance management

Cons:

  • Limited customization options
  • Tax deductions limited to Enterprise plan

Best for dedicated client support

  • From $199/employee/month
Visit Website
Rating: 5/5

Remote People is a global Employer of Record (EOR) provider that helps companies hire and manage remote employees across 150+ countries, including Germany. Their services are designed to simplify compliance with German labor laws while offering businesses a way to expand internationally without opening a local entity.

Why I picked Remote People: I included Remote People in this list because of its emphasis on compliance and client service. Germany has strict employment regulations, and Remote People can assist with payroll, taxes, and benefits in line with local standards. This may reduce the risk of compliance issues for companies hiring in the region.

They may also be a useful choice if you need recruitment support, given their network of 300,000+ vetted candidates and a six-month placement guarantee. In addition, every client is assigned a dedicated point of contact, which can make communication more consistent and reliable.

Remote People key services:

In addition to EOR services, Remote People offers international payroll, contractor management, background checks, and relocation assistance for employees who need work visas.

They also provide Professional Employer Organization (PEO) services in the U.S., which can be helpful for companies hiring across multiple regions.

Pros and cons

Pros:

  • Wide recruitment network
  • Dedicated client support contact
  • Candidate placement guarantee

Cons:

  • Some services available only in certain regions
  • No publicly listed integrations

Best German-based EOR for 170+ countries

  • Free demo available
  • From $314/month
Visit Website
Rating: 4.1/5

Lano is a German-based global employment platform that enables businesses to hire and manage employees in over 170 countries without the need to establish local legal entities. By acting as an Employer of Record (EOR), Lano handles compliance, payroll, taxes, benefits, and HR administration, allowing you to focus on your core operations.

Why I picked Lano: Lano is a great choice for companies hiring in Germany because it ensures full compliance with German labor laws, tax requirements, and employee benefits. Germany has strict employment regulations, including statutory health insurance, social security contributions, and annual leave policies. Lano ensures that employees receive locally compliant contracts and all mandatory benefits, so you don’t have to navigate complex legal requirements yourself.

They also offer a fast onboarding process, allowing you to hire and integrate new employees in less than a week. Instead of spending months setting up a legal entity in Germany, you simply sign a Master Service Agreement with Lano, provide job offer details, and let Lano handle the rest.

Lano Key Services:

Other services include the ability to relocate employees with ease, allowing businesses to retain talent even when team members move across borders. Lano also provides a consolidated payroll management system that integrates multiple payroll providers, so you can manage payments and compliance in one place.

Additionally, the platform offers support for both full-time employees and contractors, giving companies flexibility in how they build their international teams.

Pros and cons

Pros:

  • Fast onboarding process
  • Provides locally compliant contracts and benefits
  • Enables hiring in 170+ countries without setting up legal entities

Cons:

  • Integration with existing systems may require setup effort
  • No built-in recruitment services

Best for competitive benefits packages

  • Free trial available
  • From $29/user/month
Visit Website
Rating: 4.6/5

Remote’s global HR solution offers EOR services that simplify payroll, benefits, taxes, and compliance for international workers. You can use their services to hire full-time employees or contractors and gain local market insights.

Once you’re ready to hire an employee in Germany, Remote can complete their onboarding process within 5 days.

Why I picked Remote: Remote helps companies compete for talent effectively in the European market by lending access to competitive benefits packages. They can help you offer health insurance, dental insurance, vision insurance, life and disability coverage, and mental health support services for your German employees. Remote also doesn’t add any markup to their benefits premiums or administration costs, making them a cost-effective choice.

Remote Key Services:

Services include global payroll processing, intellectual property and invention rights protection, and benefits packages that are tailored for the German market. Their software platform also covers experience reimbursement and time-off requests, which are quick and easy to approve through their online portal.

Pros and cons

Pros:

  • Strong local expertise
  • User-friendly platform
  • Comprehensive compliance support

Cons:

  • High cost per employee
  • Limited customization options

Best for contingent staffing and contract workforce programs

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.9/5

FoxHire is best known for its focus on contingent staffing and multi-state digital workforce deployment. It centralizes onboarding, payroll, tax & benefits administration, and compliance for W-2 and contractor workers across all 50 U.S. states—ideal for staffing agencies and companies scaling contract talent without building in-house infrastructure.

Why I picked FoxHire: FoxHire stands out as the best EOR platform for contingent staffing and contract workforce programs because it is built from the ground up for staffing agencies and organizations placing high volumes of contract or part-time workers. Its platform manages the legal employment role while letting recruiters control client relationships, billing, and placement margins.

The platform automates onboarding, benefits options, payroll funding, tax filings, and compliance across states—including high-regulation jurisdictions such as California and New York—so staffing firms can expand without entity formation or back-office risk.

FoxHire Standout Features & Integrations:

Features include digital onboarding (I-9, W-4, background checks, credentialing), multi-state payroll and tax compliance, benefits and workers’ comp administration, time-sheet and expense tracking, invoicing and funding for staffing firms, real-time dashboards for onboarding and workforce status, and bill-rate vs pay-rate calculators for margin transparency.

Integrations include secure API access and connectors with applicant tracking systems like Bullhorn and Loxo, as well as portals for clients, recruiters, and workers—providing full visibility across the EOR workflow and allowing staffing firms to maintain brand and client relationships.

Pros and cons

Pros:

  • Full U.S. 50-state employment coverage including onboarding, payroll, benefits, and tax compliance
  • Embedded pricing and margin tools help staffing firms maximize profitability
  • Tailored portals for recruiters, clients, and workers give transparency and ease of use

Cons:

  • Less suited to internal full-time employee programs
  • Service fees may be high for very low-volume or single-state placements

Best for managing Germany's complex labor laws

  • Free demo available
  • From $29/contractor/month to $499/EOR employee/month
Visit Website
Rating: 4.5/5

Omnipresent is a global employment platform that simplifies the hiring, onboarding, and management of international teams without the need for establishing a local entity. It provides services such as Employer of Record (EOR), Professional Employer Organization (PEO), and Virtual Employer Organization (VEO), enabling companies to compliantly hire and manage employees and contractors worldwide. 

Why I picked Omnipresent: Omnipresent distinguishes itself as an exceptional EOR in Germany through its comprehensive service offerings that address the complexities of international hiring. One key feature is the ability to swiftly onboard employees in Germany without necessitating the creation of a local entity. This accelerates market entry and ensures compliance with German labor laws, which is crucial for businesses looking to expand efficiently and legally. The use of technology in their processes further enhances the hiring experience, making it efficient for both employers and employees.

Omnipresent Key Features:

Omnipresent's Global Payroll Services ensure that companies can manage payroll across over 150 countries, ensuring timely payments and compliance with local laws. The Global Benefits Design feature helps businesses create competitive and value-aligned benefits packages. Additionally, the Contractor to Employee Migration service aids companies in transitioning contractors to full-time employees seamlessly, reducing operational disruptions. These features collectively simplify international expansion and enhance global workforce management.

Pros and cons

Pros:

  • Streamlined onboarding processes
  • Expert guidance in financial, legal, and tax regulations
  • Global hiring in 150+ countries

Cons:

  • Limited functionalities compared to competitors
  • Longer than average setup time

Best for a flexible contract with no termination fee

  • Free demo available
  • From $49/contractor/month

Horizons offers streamlined global HR solutions including EOR and PEO services, international payroll and recruitment, and global mobility & immigration support.

Why I picked Horizons: I included Horizons in this list because their EOR service is cost-effective compared to others, and they offer flexible contract terms. You can end your EOR relationship with them at any time without worrying about costly termination fees or other penalties.

Their German EOR services are administered by their local experts based in Berlin who are well-versed in German employment laws, including statutory maternity leave and parental leave. 

Horizons Key Services:

In addition to their standard EOR services, they offer additional niche service offerings such as tips for doing business in Germany, guides to help with global expansion, resources for strategic mergers & acquisitions, and advice on how to access new and emerging markets.

Horizons also provides cultural training and support to help employees integrate seamlessly into the German work environment. This service enhances employee satisfaction and retention by addressing cultural nuances and fostering a positive workplace culture.

Pros and cons

Pros:

  • Cultural integration support
  • Strong focus on compliance
  • Deep knowledge of German labor laws

Cons:

  • Service offerings may vary by region
  • Dependence on local partners for some services

Best with a dedicated HR advisor

  • Pricing upon request

Universal Hires is an established Employer of Record service provider that offers comprehensive EOR services in Germany. They offer expertise in local compliance, payroll management, and employee benefits administration. Notably, they emphasize a tailored approach to meet the unique needs of the German market, ensuring smooth operations and legal compliance.

Why I picked Universal Hires: First and foremost, I include Universal Hires in this list because of their well-developed local presence across Germany. Secondly, their standout features include personalized service plans, extensive local market knowledge, and a commitment to seamless onboarding and HR support. These attributes make Universal Hires a top choice for businesses seeking reliable and efficient EOR services in Germany.

Universal Hires Key Services:

Universal Hires will handle employee correspondence and contracts, and assist with mandatory social security contributions and pension insurance registration, German income tax withholding, and termination liabilities, including severance calculations. 

Universal Hires also assigns dedicated account managers to each client, providing personalized support and immediate assistance with any HR-related issues. This high level of customer service ensures that companies receive the attention and solutions they need promptly.

Pros and cons

Pros:

  • Strong expertise in the German market
  • Dedicated account managers for personalized support
  • Customizable EOR solutions tailored to client needs

Cons:

  • Smaller company size compared to some global EOR providers
  • Limited language support options beyond German and English

Best for managing global IT assets

  • Free demo available
  • From $8/user/month (billed annually)
Visit Website
Rating: 4.8/5

Rippling is an all-in-one global HR, payroll, and IT platform that offers additional EOR and PEO services. You can use their combined software and services to run payroll easily, with each EOR employee paid in their local currency, including Euros. 

Why I picked Rippling: I included Rippling because of its unique dual functionality as both an HR platform and an IT management system. Using Rippling, you can provide a streamlined employee experience for all your new employees, easily granting them access to all the IT assets they’ll need as part of their employee onboarding process. 

Rippling Key Services:

Rippling’s unified platform offers enterprise-grade security, scalability, and operational efficiency, helping companies manage payroll and benefits, time-tracking, and reporting for your entire global workforce from a single user interface.

Their combined services and software include compliance monitoring, automated tax filings, accurate time tracking, expense reporting, policy management, and HR reporting.

Pros and cons

Pros:

  • Integrated benefits administration
  • Localized payroll management
  • Comprehensive compliance automation

Cons:

  • Learning curve for new users
  • Limited customization options

Best for EOR-related educational resources for clients

  • 30-day free trial
  • From $25/employee/month
Visit Website
Rating: 4.4/5

Oyster HR is a global EOR service provider that helps businesses hire employees in Germany and other countries with full compliance. Their platform is designed to support seamless global expansion with a focus on compliance and employee experience.

Why I picked Oyster HR: Oyster offers educational resources to their EOR clients to help them navigate the global employment landscape. This includes useful financial tools that help you determine the full cost of hiring a new employee in any country, or whether it would be more cost-effective to fill a position with an international contractor rather than an employee.

In addition, the Oyster Academy is a helpful resource for companies that are new to the international work-from-anywhere scene, and includes training courses on ‘how to prepare for distributed work’, and ‘how to create a company culture in a distributed environment’.

Oyster HR Key Services:

Oyster HR offers a range of features, including streamlined onboarding, payroll, and benefits management, tailored specifically for the German market. Their platform stands out for its ease of use, compliance assurance, and dedicated support, making it an ideal choice for businesses looking to expand in Germany. 

Their onboarding process is designed to be quick and efficient, helping new hires integrate into their roles smoothly. This feature includes digital contract management and automated document collection, making the entire process hassle-free for both employers and employees.

Pros and cons

Pros:

  • Efficient onboarding process
  • Strong compliance support
  • Comprehensive global benefits packages

Cons:

  • Potential delays due to time zone differences
  • Limited customization options

Best for an AI-based payroll engine

  • Free demo available
  • From $15/employee/month
Visit Website
Rating: 4.5/5

Papaya Global is a leading Employer of Record (EOR) service provider with a presence in Germany. Their platform simplifies the complexities of global payroll, hiring, and compliance, allowing businesses to efficiently manage their international workforce. They offer tailored services for the German market, ensuring compliance with local regulations and employment laws.

Why I picked Papaya Global: I included Papaya Global in this list because their platform integrates payroll, HR, and compliance into a single, easy-to-use interface, making it simple for businesses to manage their international employees. Additionally, their focus on local compliance ensures that businesses can operate in Germany without worrying about legal complications.

Papaya’s platform includes a self-guided tour that demonstrates how payroll professionals can use their technology to automate and manage their global payroll quickly and compliantly.

Papaya Global Key Services:

Papaya Global's services include advanced compliance, liability coverage, employee contract lifecycle management, immigration and visa assistance, data security monitoring, and enterprise-grade global payroll processing using an AI-based payroll engine.

Their EOR offering also includes additional HR services such as onboarding, benefits management, and employee support. This holistic approach helps businesses provide a consistent and supportive experience for their employees in Germany, enhancing employee satisfaction and retention.

Pros and cons

Pros:

  • Integrated HR services
  • Strong compliance management tools
  • Comprehensive global payroll solution

Cons:

  • Potential delays in customer support responses
  • Limited customization options

Other German Employer of Record Services

Here are some other EOR service providers in Germany that didn’t make it into my top 10 shortlist, but are still worth considering:

  1. Atlas HXM

    For enterprise organizations

  2. Airswift

    EOR for hiring in technology-driven STEM industries

  3. Safeguard Global

    EOR service for NGOs and non-profit organizations

  4. Plane

    For US-based companies looking to hire German staff

  5. Omnipresent

    For estimating employment costs

  6. Mercans

    EOR for supporting payments in cryptocurrency

  7. GoGlobal

    EOR service provider for 24-hour quotes

Hiring in Germany: Important Details

Here are some key details to note if this is your first time hiring staff located in Germany. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing staff based in Germany.

In Germany:

  • Employment laws are determined by the Federal Ministry of Labour and Social Affairs (BMAS). They are responsible for setting and managing regulations for labor conditions, health and safety at work, and social security.
  • You can hire employees or contractors. Within the employee category, you can hire full-time or part-time employees, as well as temporary, seasonal, or interns. Each category has its own set of labor laws in Germany. Your German EOR provider can help you determine the correct classification to avoid employee misclassification issues.
  • Germany has both mandatory payroll deductions and social security contributions that must be collected.
    • Mandatory payroll deductions include income tax (Lohnsteuer), Solidarity surcharge (Solidaritätszuschlag), and the Church tax (Kirchensteuer, if applicable).
    • Social security contributions include Health Insurance (Krankenversicherung), Pension Insurance (Rentenversicherung), Unemployment Insurance (Arbeitslosenversicherung), and Long-term Care Insurance (Pflegeversicherung).
  • German is the official language, though English and French are used frequently too. 
  • The standard working week in German is 48 hours, with 10 hours per day maximum. Employees also must not work for more than six continuous hours without a break, or for more than six days consecutively without one day off. 
  • Paid vacation in Germany starts at a minimum of 24 working days per year. This is mandated by the Minimum Vacation Act for Employees.
  • There are nine public holidays in Germany that are recognized nationally, plus others that vary by region or state. Paid public holidays include:
    • New Year's Day (Neujahrstag)
    • Good Friday (Karfreitag)
    • Easter Monday (Ostermontag)
    • Labour Day (Tag der Arbeit)
    • Ascension Day (Christi Himmelfahrt)
    • Whit Monday (Pfingstmontag)
    • German Unity Day (Tag der Deutschen Einheit)
    • Christmas Day (Erster Weihnachtstag)
    • Boxing Day (Zweiter Weihnachtstag)

Understanding and complying with employment norms and legal requirements surrounding German public holidays is one area where your EOR service will shine, managing these occurrences hassle-free on your behalf.

  • Germany offers maternity leave and paternity leave.
    • Maternity leave begins 6 weeks before birth and ends 8 weeks after both (14 weeks total).
    • Paternity leave can last up to 3 years and can be shared by both parents. 
  • Paid sick leave is 6 weeks in Germany. If an employee is still sick after 6 weeks, health insurance will typically kick in to provide financial support to the employee.
  • The probationary period in Germany is 6 months. During this period, the notice period for termination is usually two weeks.
  • Termination of employment in Germany requires adherence to specific legal regulations, including notice periods and valid reasons for termination. Notice periods vary based on the duration of employment and can range from 2 weeks to 7 months. Termination protection laws safeguard employees against unfair dismissal, particularly in companies with more than 10 employees.

Selection Criteria for Employer of Record Germany

Uncovering the best EOR services for this list required a deep understanding of how these services can alleviate common challenges, such as legally hiring employees abroad, managing international payments, ensuring compliance with local labor laws, providing competitive benefits, and facilitating smooth onboarding.

Here are the specific criteria I used to carefully compare the service offerings for each provider in this list:

Core Employer of Record Services (25% of total score): To be considered for inclusion in this list, each EOR provider had to offer the following basic services first:

  • The corporate structure to legally and compliantly hire employees in multiple countries without a local entity
  • The ability to manage worldwide payroll and taxes in compliance with local regulations
  • Assistance with offering competitive and locally compliant benefits packages
  • Assistance with navigating visa and work permit processes for expatriate employees
  • Robust procedures to ensure data privacy and security that comply with international standards, including GDPR and other requirements

Additional Standout Services (25% of total score): To help me narrow in on the best EOR services out of the numerous options available, I also took note of any unique or less common services, including:

  • Advanced technology platforms that streamlined payroll and HR processes while still offering ease of use
  • Specialized experience in hiring employees within specific new countries or key industries
  • Services that enhance remote work compliance and global mobility needs
  • Specialized customer support for complex immigration cases
  • Assistance with international IT requirements, including managing computer equipment, software licenses, and other asset-tracking requirements
  • A focus on eco-friendly and sustainable employment practices

Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:

  • How many years their business has operated in the EOR space
  • Any industry recognitions or certifications the provider may hold in international HR and payroll
  • Their depth of knowledge in local labor laws across multiple jurisdictions
  • Their expertise in new markets, including how many different countries they offer local expertise in
  • Evidence of a strong track record managing global expansion processes
  • The combined experience and credentials of their team members, if available

Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:

  • The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
  • Support for integrating the EOR provider's software with existing HR systems
  • Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase

Customer Support (10% of total score): Since the EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support. To evaluate the level of customer support each company offered, I considered the following:

  • The availability of a multilingual support team that covers different time zones
  • Multiple support channels, including phone, email, and live chat
  • Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
  • The existence of dedicated account managers to provide assistance as needed

Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:

  • Transparent pricing models without hidden fees
  • Comparative analysis of service offerings versus cost
  • Flexibility in service packages to suit different business sizes and needs

Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.

Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. To determine this, I considered the following factors:

  • Consistently high ratings across various consumer review platforms
  • Specific feedback on the ease of use of the EOR services
  • Testimonials highlighting exceptional customer support and problem resolution

Using this assessment framework helped me identify the employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.

What is an Employer of Record in Germany?

An Employer of Record (EOR) in Germany is a third-party partner that legally employs your German-based hires on your behalf, while you stay in charge of their day-to-day work. The EOR handles payroll, taxes, benefits, and compliance with German labor laws, so you don’t have to become a legal expert to hire locally.

Using a German EOR lets you bypass the complexity of setting up a local entity, giving you a faster, safer way to grow your team in Germany—without the compliance risk.

Instead of asking your HR professionals to become experts in German labor laws and regulations, you can outsource these requirements to an EOR in Germany and gain peace of mind that your future operations will be compliant.

If you’re planning to hire employees in Germany, you'll need to decide whether to use an EOR or set up your own local legal entity. Both approaches can get the job done, but they come with very different timelines, costs, and responsibilities.

Here’s a quick comparison to help you weigh the pros and cons:

RequirementEOR in GermanyLegal Entity in Germany
Setup TimeA few days to a weekSeveral weeks to months
Legal RegistrationNot requiredRequired with Handelsregister, Finanzamt, etc.
Compliance ResponsibilityManaged by the EORFully managed by your internal team
Payroll & TaxesHandled by the EORMust be managed in-house or via local provider
HR Admin & BenefitsIncluded in EOR serviceMust be set up and managed internally
CostMonthly per-employee feeHigher upfront setup + ongoing admin and legal costs
Level of ControlModerateFull control over operations and processes
ScalabilityIdeal for fast, flexible expansionBetter suited for long-term, large-scale operations
Key differences between using an EOR and setting up a legal entity in Germany.

Using an EOR is the fastest and simplest way to start hiring in Germany, especially if you're testing the market or expanding quickly. Setting up a legal entity may offer more control, but it comes with a bigger investment of time, money, and internal resources.

How to Choose an Employer of Record in Germany

A great EOR service can streamline hiring, reduce compliance risk, and make managing German employees far less complicated—but only if it aligns with your unique needs. To find the right fit, start by clarifying the specific challenges you're trying to solve.

As you evaluate your options, consider these key questions:

  • What problem are you solve? Are you trying to hire in certain regions, simplify compliance, manage Euro-based payroll, or offer local benefits? Be specific about what you need help with, so you can find a provider who excels in that area.
  • Who will benefit from the EOR service? Think about who will manage the EOR relationship internally. How will it improve their workload, processes, or confidence in global hiring?
  • What's your budget? Estimate how many employees you plan to hire in Germany. Since EOR fees are typically charged per employee per month, this helps forecast your total costs.
  • What outcomes matter most? Are you aiming for faster hiring, easier compliance, or better collaboration in a specific location? Define your success metrics up front and let your ultimate goals guide your decision.
  • How will it fit with your HR systems? Consider how the EOR’s tech integrates with your current HR tools to avoid data silos or workflow disruption.

Remember every business is different — don’t assume that a German employer of record service will work for your organization just because it's popular. Instead, your ideal EOR should solve your pain points and grow with your team.

Pro Tip on How to Choose an EOR

Pro Tip on How to Choose an EOR

“During discovery calls, try to understand how their values align with yours and ask them to share success stories but also how they handle client concerns. Share key practices and expectations of your internal team and see how that compares with their HR practices, like payroll timelines and onboarding processes. In my experience the wins and frustrations of using EORs often came down to misalignment on the above.” ~Karen Weeks, Global Chief People Officer & Advisor

With global hiring on the rise, companies need fast, compliant, and scalable ways to manage international teams. In response, EOR services are evolving, offering smarter tech, flexible features, and all-in-one platforms to simplify hiring, payroll, and compliance across borders.

Here are the latest trends shaping EOR services and the HR software behind them:

  • Immigration Support: There is a growing demand for assistance with immigration services like visa and work permit sponsorships, simplifying global talent acquisition processes for client companies immensely.
  • Specialized Services for Diverse Needs: Several EOR providers have begun to offer IP and invention rights protection and equity incentive planning services, to cater to the specific needs of their client companies.
  • Enhanced Employee Benefits Packages: There's a growing trend in EOR providers going beyond standard healthcare coverage to offer a full spread of enterprise-level medical and health benefits, stock options, and even one-time benefits like moving bonuses. This trend demonstrates an understanding of the importance of using benefits to attract and retain German top talent​.
  • AI-Backed Knowledge Bases: Some EOR providers (including Deel) are beginning to offer legally vetted knowledge bases or information wikis that use artificial intelligence to surface answers to common questions quickly. This helps customers source details on hiring within a specific country fast, without relying on human-run support systems.

As the market continues to evolve, these trends are likely to shape the future of international employment, making it easier for businesses to navigate the challenges of global expansion. For a closer look at specific EOR providers that are capitalizing on these trends, I recommend reading our in-depth reviews of Atlas HXM, Omnipresent, Deel, and Remofirst.

Key Employer of Record Services

An Employer of Record (EOR) simplifies hiring and compliance in Germany by managing payroll, tax obligations, and labor laws. Key services include:

  • Payroll in EUR: Ensures accurate salary payments in compliance with German labor laws, including the German Civil Code (Bürgerliches Gesetzbuch, BGB) and Works Constitution Act (Betriebsverfassungsgesetz), covering wage rates, overtime, and record-keeping to avoid penalties from labor authorities like the Federal Employment Agency (Bundesagentur für Arbeit).
  • Tax Compliance and Social Contributions: Handles income tax (Lohnsteuer) and mandatory social security contributions such as health insurance, pension (Rentenversicherung), unemployment insurance, and long-term care insurance, ensuring adherence to the German tax office (Finanzamt) and social security system.
  • Labor Law Compliance: Provides expertise on German labor regulations, including compliance with working hour laws, paid leave, collective bargaining agreements (Tarifverträge), and termination procedures, ensuring compliance with the German Labor Law (Arbeitsrecht) and alignment with global workforce laws and conventions.
  • Talent Acquisition and Background Checks: Conducts industry-specific credential verification and background checks to ensure new hires meet German legal standards for employment and necessary certifications.
  • Visa and Work Permits: Assists with securing the necessary German visas and work permits for non-EU employees, ensuring compliance with the Federal Office for Migration and Refugees (BAMF) and the Foreigner’s Authority (Ausländerbehörde) regulations.
  • Onboarding and Offboarding: Manages compliant onboarding and terminations in line with German labor laws, including notice periods, severance pay, and the proper execution of end-of-employment documents like job references (Arbeitszeugnis).
  • Benefits Administration: Provides competitive benefits packages, including health insurance, pension contributions, meal allowances, and transportation subsidies, tailored to the German labor market.
  • HR Support: Offers ongoing consultation on German employment laws, workplace safety regulations (Arbeitsschutzgesetz), and compliance with mandatory employee documentation, including payroll and personnel records.
  • Risk Management and Insurance: Oversees workers' compensation and ensures compliance with local insurance requirements, including occupational accident insurance (Berufsgenossenschaften) and supplementary health insurance, to mitigate legal and financial risks.
  • Multi-Language Support: Facilitates communication with Germany’s diverse workforce through the translation and localization of employment contracts, legal documents, and HR materials.

Benefits of an Employer of Record Service

If you're expanding globally, an EOR can take the legal and logistical weight off your shoulders, helping you hire across borders without setting up a local entity. Partnering with an EOR gives you the confidence to grow faster while staying fully compliant with foreign labor laws.

Here are some key benefits you can expect:

  • Quick Market Entry: For organizations aiming to test new markets or hire talent in new countries where they have no legal presence, an EOR offers a swift and efficient solution to initiate operations, saving time and resources.
  • Simplified Global Payroll: Using an EOR service simplifies the complex process of managing international payroll, including tax deductions, withholdings, and currency conversions for your employees worldwide.
  • Global Compliance & Risk Mitigation: By managing compliance, an EOR service provides expertise in navigating the intricacies of employment laws, tax regulations, and insurance requirements in multiple jurisdictions, helping businesses safeguard their operations against compliance-related risks.
  • Enhanced Benefits Negotiation: By leveraging their extensive networks and purchasing power, EORs can negotiate better international insurance rates and secure competitive benefit packages on your behalf, enhancing your ability to attract and retain top talent worldwide.
  • Improved Cost Effectiveness: Using an EOR service is a cost-effective way for businesses to enter new markets, compared to the significant costs of establishing a new foreign entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage. 

Understanding the benefits of an EOR service is crucial for strategic planning and operational efficiency. As businesses look towards international markets for growth opportunities, partnering with an EOR provider offers a streamlined, cost-effective, and compliant pathway to global expansion.

Costs & Pricing for Employer of Record Services

Typically, the cost of an EOR service follows a fee per-employee, per-month pricing model, which can vary widely depending on a range of factors. This model allows for scalability and predictability in budgeting for international expansion efforts.

In general, EOR services in Germany cost between $400 to $2,000 per employee, per month. 

Key factors that can influence the pricing of an employer of record service include:

  • Geographic Location: Costs can vary significantly based on the country or countries you're hiring in. This is due to local economic conditions, labor laws, and the complexity of compliance requirements.
  • Employee Seniority and Role Complexity: The level and nature of the roles being filled can also impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
  • Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
  • Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
Advice on the EOR Pricing Sweet Spot

Advice on the EOR Pricing Sweet Spot

“While their expertise and assumption of liability can be extremely valuable to the organization, EOR fees can be significant. As a rule of thumb, they tend to add value in countries where organizations have less than 3-5 full-time employees.” ~Alice Ferretti, Founder, HumansR

Some EORs also operate under different pricing models, including a percentage of employee salary model, a fixed pricing model, and custom pricing models.

When considering an EOR service, it is crucial to understand how these factors impact the overall cost to ensure that the service aligns with your business's needs and budget constraints. Anticipating the specific requirements of your international expansion strategy will help you choose the most cost-effective and efficient EOR solution for your needs.

FAQs about EOR Services in Germany

If you’ve got specific questions about the requirements to hire German employees or how EOR services work, these answers to frequently asked questions are a good place to start:

What does an Employer of Record in Germany do?

An EOR in Germany legally employs your team members on your behalf, so you don’t need to set up a German entity. The EOR handles local employment contracts, payroll in euros, tax deductions, social security contributions, and compliance with German labor laws—making it easier to hire and manage talent in Germany without the legal risk.

EOR services are ideal for companies expanding internationally without setting up local offices. They let you hire global talent while minimizing legal risk, since the EOR assumes full responsibility for compliance and employment on your behalf.

What are the minimum wage requirements in Germany?

The minimum wage in Germany is €12.41 per hour as of January 1, 2024. This rate is determined by the German Minimum Wage Act (Mindestlohngesetz) and is subject to periodic review and adjustments by the Minimum Wage Commission.

For more details, consult a German EOR partner, or visit the Mindestlohn Kommission website.

Do EOR providers offer other types of global HR services?

Yes, most of the time they do. Many service providers in this space also offer professional employer organization services (also known as PEO services), as well as international payroll services.

PEO services are a way to outsource your HR responsibilities to support your international teams. PEO companies can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.

What are some of the consequences of non-compliance?

As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using an EOR service provider.

If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:

  • Fines and penalties
  • Legal actions such as lawsuits or other litigation proceedings
  • Corrective measures and compliance orders
  • Revocation of business licenses or operating permits
  • Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
  • Increased monitoring and additional government scrutiny

Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.

Are there any risks to using an Employer of Record service?

While EORs offer major benefits, they aren’t risk-free. Here are a few considerations to keep in mind when choosing a provider:

  • Financial risks: Watch for hidden fees (like onboarding or advisory services), required benefit costs, and currency exchange fluctuations that can affect payroll expenses.

  • Operational risks: You’re sharing sensitive employee data, so strong data protection practices (like ISO 27001 certification) are a must.

  • Strategic risks: You may give up some control over employee management, and any missteps by the EOR could affect your employer brand.

Gain Access to the Best Talent with an EOR in Germany

If you made it this far, I hope you have a better sense of how EOR services can simplify the process of hiring German employees. They're truly a valuable resource, whether you're an enterprise organization looking to snap up the top talent in Germany, or a small business or startup trying to break into the German talent marketplace without launching your own entity.

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Kim Behnke
By Kim Behnke

Kim Behnke is an HR software writer and analyst for People Managing People, drawing on nearly a decade of hands-on experience in human resources. With a background spanning recruitment, onboarding, performance management, training, policy development, and HR analytics, she brings a deep understanding of the challenges HR teams face and how technology can solve them. Kim holds degrees in psychology, writing, and technical communication, and is a Certified Digital HR Specialist through the Academy to Innovate HR. Her work is driven by a passion for streamlining systems and optimizing workflows to help HR teams work smarter.