Employer Tax Contributions

Tax Type	Rate (Employer Share)	Base
Pension Insurance	9.3%	Gross Salary
Health Insurance	7.3% + half of additional fee	Gross Salary
Unemployment Insurance	1.3%	Gross Salary
Long-Term Care Insurance	1.8% (varies for childless employees)	Gross Salary

Filing & Compliance

• Income tax withholding and church tax remittances are due monthly by the 10th of the following month.
• Social security contributions are due monthly by the third-last working day of the month.
• Employers must issue a "Lohnsteuerbescheinigung" (certificate of wages) to each employee by the February payroll.

Income Tax Brackets

Income Range	Tax Rate
Up to €12,096	0%
€12,097 to €66,760	14% - 42% (progressive)
€66,761 to €277,825	42%
Over €277,826	45%

Employee Contributions

Deduction Type	Rate (Employee Share)	Cap (Annual)
Health Insurance	7.3% (plus average additional contribution)	€66,150
Pension Insurance	9.3%	€96,600
Unemployment Insurance	1.3%	€96,600
Long-term Care Insurance	1.7% - 2.9% (higher for childless)	€66,150

Personal Allowances

• Basic tax-free allowance: €12,096 for single individuals.
• Employee lump-sum allowance for business deductions: €1,230.
• Child allowance: €8,952 per child for parents in tax class 1, 2, and 3.