Starting work

Eine Frau sitzt am Schreibtisch © Goethe-Institut/ Gina Bolle

Have you found a permanent job in Germany? This means you are now are an employee.

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Documents you need when you start work

You will need to give your employer several documents. Firstly, you need to prove you have health insurance. You can get this document from your health insurance provider. In Germany, everyone must have health insurance. You also need proof that you have a bank account. Your employer will transfer your monthly salary to your bank account. Your employer will also need a copy of your residence title with your work permit (see Finding work). Occasionally, employers also ask to see a police clearance certificate. You can get this from the residents’ registration office.

Insurance and tax

Everyone in Germany must have health insurance. You must arrange health insurance coverage yourself before starting work. As an employee, you are usually required to pay into a social insurance scheme: this means you automatically have pension insurance, unemployment insurance, long-term care insurance and accident insurance. Part of this insurance is paid by your employer, the other part is paid by you, as the employee. Your share is automatically deducted from your salary or wage. You can find more information in the section Insurance.

You will also need a tax number and an electronic income tax card (ELStAM). You can get both of these from the tax office. Your employer automatically receives the electronic income tax card from the tax office. You don’t have to organise the payment of these the taxes yourself. Your employer transfers the taxes from your wages/salary directly to the tax office. You can (and sometimes you must) submit an income tax return. This is worthwhile, as you often get small amount of money back. More information is available in the section “Finances and taxes”.

Employment contract

Every employee gets an employment contract. You and your employer sign the contract. Read the employment contract carefully, and only sign it after you have done so. If there’s something you don’t understand, ask for help. Adults can contact the service Migration Counselling for Adult Immigrants (MBE). Children and young adults up to the age of 27 can get advice from the Youth Migration Services (JMD). You can also call the citizens’ hotline of the Federal Ministry of Labour and Social Affairs (+49 30 221 911 004). Here, you can ask questions related to labour law matters.

The employment contract outlines all the rules that you and your employer must follow. The contract also states how much you will earn a month, how many days’ holiday you are entitled to and what to do if you’re ill. When you start a new job, you normally have a probationary period. Probationary periods vary in length. Sometimes, they’re only a few weeks, sometimes they can be six months. During the probationary period, your employer will closely assess your performance. They will decide whether you can stay with the company after the probationary period. But you can also decide whether or not you wish to continue working there after this period. During the probationary period, the notice period for termination is shorter (usually two to three weeks). Afterwards, it is usually three months. Employment contracts are either fixed-term or open-ended. A fixed-term contract automatically ends after a certain period of time. The employer does not have to give notice of termination. More information about working hours, holidays, sick leave and handing in your notice is available in the section My workplace.

Minijobs

In Germany, there are also “minijobs”. A minijob is a form of employment where you can earn up to 538 euros per month or work a maximum of 70 days in a calendar year. You get accident insurance. However, you are not automatically covered by health insurance and long-term care insurance. You need to arrange your own health insurance. You can decide whether to pay into pension insurance or whether you want to be exempted from it. You will not be eligible for unemployment insurance.

Self-employment

Do you work for yourself, in other words, you’re not an employee? If you want to set up your own company, you will need a trade licence. You can get one from the trade licensing office. Ask at the town hall where your local trade licensing office is located. You also need a trade licence if you want to open a shop or restaurant, for example.

If you work as a freelancer, you must register your activity with the tax office and obtain a tax number. The tax office will want to know approximately how much profit you make per year. It will then decide how much tax you have to pay. You are responsible for paying the taxes you owe to the tax office.

You will also need health insurance. As a freelancer, you must pay for your own health insurance. It’s also advisable to have pension insurance. In certain professions, for example if you are a tradesperson or a midwife, pension insurance is also mandatory. Other types of insurance may also be important. You can find lots of advice about setting up a business on the website “Starting a Business in Germany”.

Frequently asked questions

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