As of the start of the new year, there will be some changes in terms of laws and regulations. As you’re in-country knowledge partner, we have listed the most important legislative changes for you. This way you don’t have to search for them yourself and you know exactly what is changing in the German employment law.
Immigration salary levels
In 2022, the minimum salary requirement for a Blue Card for regular professions will be EUR 56.400,00 gross per year or EUR 4.700,00 gross per month.
In 2022, the legal minimum wage will be increased twice. From January 1, the minimum wage will be EUR 9,82 per hour, and from July 1, EUR 10,45 per hour.
Employees can receive up to EUR 1,500.00 as a tax-free “Corona-bonus” from their employer. This applies until March 31, 2022. The maximum of EUR 1,500.00 may not be exceeded. If an employee received a Corona bonus last year, he is not eligible for it again this year.
Tax allowance for benefits in kind
The tax allowance increases from previously EUR 44,00 to EUR 50,00 .
The exemption limit of 50 euros stipulates that benefits in kind for employers and employees are tax and social security free only if the total value does not exceed 50 euros per month. Therefore, this form of non-cash benefit always remains tax-free if the 50-euro exemption limit is not exceeded.
If the value of the benefits in kind that an employee receives from his employer exceeds the exemption limit of 50 euros, the entire amount must be subject to payroll tax and social security. This becomes taxable. Usual benefits in kind are, for example, vouchers or the Edenredcard.
In 2022, there will be changes to the German pension system.
As of January 1, the income threshold for contributions to general pension insurance in East Germany increases to EUR 6.750,00 per month (2021: EUR 6.700,00). In West Germany, it will decrease to EUR 7.050,00 per month (2021: EUR 7.100,00).
Since January 1, 2019, employers have been required to make a mandatory contribution of at least 15% to newly established occupational pension plans. Older contracts were initially exempted from this obligation, but the transition period ended on December 31, 2021. As of 01.01.2022, employers must also finance a mandatory contribution of 15% for old contracts concluded before 01.01.2019.
All direct insurance policies, pension promises, and pension funds processed through deferred compensation will be affected.
If the employee’s salary is above the contribution assessment ceiling, the employer is not obliged to pay the 15% contribution.
Child sick pay
During the pandemic, the number of additional days an employee can stay out of work to take care of his sick child has been increased from 20 days to 30 days per parent. This will still be the case until March 19th, 2022.
The entitlement covers working parents with statutory health insurance, who are entitled to sick pay themselves and whose child is under the age of 12. If the child has a disability, the entitlement also applies above the age of 12.
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Are you curious about what will change in terms of laws and regulations in the other countries we’re located in? Read more about the legal changes in The Netherlands, France, Ireland, and Spain. Do you want to dive deeper into these changes? Our HR experts in Germany will be happy to support you! Fill out the contact form below and we will get back to you as soon as possible!
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