Employee in Germany

What Type of Contract Can I Have in Germany?

Unbefristeter Vertrag: permanent contract, the most common.
Befristeter Vertrag: fixed-term contract, often for specific assignments.
Minijob / Midijob: small jobs (<€520/month for Minijob, €520–€1,600 for Midijob), subject to reduced contributions.

Do I Need to Sign a Written Contract?

Yes. Even if verbally valid, a written contract protects your rights: salary, paid leave, working hours, notice period, benefits.

What are My Rights as a French Employee in Germany?

Legal minimum wage (Mindestlohn): €13.90 gross/hour in 2026.
Paid leave: minimum 20 working days per year (5 days/week).
Protection against unfair dismissal after 6 months of service.

How Am I Taxed in Germany?

Income tax (Einkommensteuer) withheld at source by the employer.
Solidarity surcharge (Solidaritätszuschlag): 5.5% of income tax, reduced or abolished for the majority.
Church tax (Kirchensteuer): for church members, 8–9% of tax.
Progressive taxation by brackets, marginal rate up to 45%.

How Can I Optimize My Taxation?

Tax deductions: professional expenses, double residency, travel expenses, training.
Supplementary pension contributions or real estate: possibility to significantly reduce tax.
Married couples: Ehegattensplitting to reduce tax if incomes are unbalanced.

Do I Need to Declare My French Income if I Live in Germany?

Yes, if you are a German tax resident. Income from French sources may be taxed in France but impacts your tax rate in Germany (Progressionsvorbehalt).

What are the Steuer-ID and Steuernummer?

Steuer-ID: personal, unique number, valid for life.
Steuernummer: tax number for declarations and invoices (rarely used by employees, mainly for self-employed).

What Social Contributions Do I Need to Pay?

Health insurance (Krankenversicherung): mandatory.
Public pension insurance (Rentenversicherung): mandatory.
Unemployment insurance (Arbeitslosenversicherung): mandatory.
Long-term care insurance (Pflegeversicherung): mandatory.

Can I Keep My French Health Coverage?

Employees who are German tax residents must be affiliated with a German Krankenkasse, except for temporary secondment via A1. For those eligible for private insurance, the Caisse des Français de l’Étranger (CFE) can be a solution (see Health FAQ).

Are there any Supplementary Insurances?

Private liability insurance.
Private accident insurance or supplementary health insurance.
Life insurance or private pension to optimize taxation and plan for the future.
Occupational disability insurance.

What are My Paid Leave Entitlements?

Legal minimum: 20 working days per year (for 5 days/week).
Actual average: 25–30 days per year.

Can I Receive Family Benefits?

Kindergeld: family allowances for children up to 25 years old.
Elterngeld: parental allowance, calculated based on your German income.
Married couples or civil partners: rights to Ehegattensplitting and potential additional allowances.

Are there any Grants or Support for Training or Professional Mobility?

Subsidized professional training via Bildungsurlaub.
Possible deduction of commuting expenses (Pendlerpauschale).

How Can I Optimize My Income and Savings?

Private pension (Basisrente), German retirement savings plan.
German or international life insurance for long-term savings and inheritance.
Investment in SCPI, real estate, or gold to diversify and reduce tax on supplementary income.

Are there any Tax Benefits for Expatriates?

Relocation expenses for employment (Umzugskosten) deductible.
Double residency expenses if living in Germany and domiciled in France.
Possible deduction of childcare and training expenses.

What Tools are Available to Manage My Payroll and Taxes?

ELSTER portal for tax declarations.
Personal tracking software: WISO Steuer, Taxfix, Smartsteuer…

Should I Consult a Tax Advisor?

Yes, especially for:

Cross-border income,
Tax optimization for couples/families,
Complex declarations (investments, rental income, SCPI, life insurance).

Why Choose Faller Finance?

We assist French employees in Germany to:

Optimize your taxation and income tax to legally reduce your liabilities,
Structure your savings, pension, and investments to secure your long-term assets,
Ensure a level of health and provident coverage equivalent to that in France, adapted to the German system.