Living
Benefits
Companies in Germany often complain about the high cost of labour because they’re forced to cover about half of the cost of their employees’ health insurance, nursing-care insurance, public pension and unemployment insurance. Although this provides employees with a comprehensive portfolio of mandatory benefits, employees themselves must cover the other half of these costs. Expect about 18% of your salary to go toward these various benefits, of which you may or may not ever take advantage. Nursing-care insurance covers care for anyone – elderly or otherwise – unable to take care of themselves. Unemployment insurance is a foreigner’s ticket into the German social system. If you ever get laid off and have paid in for at least six months, you’ll get two-thirds of your salary for up to three years.
The government also mandates 24 holiday days per year after you’ve been with a company for six months. To look good to potential employees, many companies increase the figure to 30 days a year. On top of holiday days, workers are also given a number of national holidays including Good Friday, Easter Monday, 1 May, Ascension Day, Whit Monday, the Day of German Unity on 3 October, Christmas and New Year’s too.
Maternity and paternity leave are also set by the government and ensure parents who want to take time off to raise children will be able to both pay the bills and return to their positions after a set period – years for mothers but just months for fathers.
Since so many benefits are already set by the government, contract negotiations often hinge on pay. Still, some employers offer private pension plans, gym memberships and stock options or other profit-sharing schemes. Another common negotiating point is the length of any probationary period, during which you can be fired within two weeks for little or no reason. Probezeit, as it’s known, is generally six months but is entirely up to the employer and employee. Once you’ve survived the probationary period, you’re protected by the country’s generous employment laws.
The government also mandates 24 holiday days per year after you’ve been with a company for six months. To look good to potential employees, many companies increase the figure to 30 days a year. On top of holiday days, workers are also given a number of national holidays including Good Friday, Easter Monday, 1 May, Ascension Day, Whit Monday, the Day of German Unity on 3 October, Christmas and New Year’s too.
Maternity and paternity leave are also set by the government and ensure parents who want to take time off to raise children will be able to both pay the bills and return to their positions after a set period – years for mothers but just months for fathers.
Since so many benefits are already set by the government, contract negotiations often hinge on pay. Still, some employers offer private pension plans, gym memberships and stock options or other profit-sharing schemes. Another common negotiating point is the length of any probationary period, during which you can be fired within two weeks for little or no reason. Probezeit, as it’s known, is generally six months but is entirely up to the employer and employee. Once you’ve survived the probationary period, you’re protected by the country’s generous employment laws.
