How do I install the Germany Payroll skill?

Run npx skillmds@latest add openaccountants/germany-payroll in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

What does the Germany Payroll skill do?

> Use this skill whenever asked about German payroll processing for employees. Trigger on phrases like "German payroll", "Lohnsteuer", "Gehaltsabrechnung", "Brutto Netto Rechner", "Steuerklasse", "Sozialversicherung", "Arbeitnehmeranteil", "Arbeitgeberanteil", "Beitragsbemessungsgrenze", "payslip Germany", "Lohnabrechnung", "Nettolohn", "Solidaritätszuschlag", "Kirchensteuer", "Rentenversicherung", "Krankenversicherung", "Pflegeversicherung", "Arbeitslosenversicherung", "Minijob", "Midijob", "minimum wage Germany", "Mindestlohn", "Entgeltabrechnung", or any question about computing employee pay, withholding tax, or social contributions in Germany. This skill extends de-payroll.md with full payroll lifecycle coverage including mandatory benefits, payslip requirements, filing obligations, and employer cost analysis. ALWAYS read this skill before processing any German employee payroll. It is listed under AI & ML on SkillMD.

Is Germany Payroll safe to use?

This skill has not completed SkillMD's automated safety review yet. SkillMD never runs a skill's scripts for you; review the SKILL.md before installing.

Which AI agents work with Germany Payroll?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Germany Payroll free to use?

Yes. Installing skills from SkillMD is free. This skill is licensed under AGPL-3.

Who published Germany Payroll?

openaccountants (@openaccountants) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Germany Payroll by openaccountants — Agent Skill

Name: Germany Payroll
Author: openaccountants

Germany Payroll Skill v1.0

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Section 1 -- Quick Reference

Field	Value
Country	Germany (Bundesrepublik Deutschland)
Currency	EUR only
Standard pay frequency	Monthly (Monat) -- dominant; weekly/daily possible
Tax year	Calendar year (1 January -- 31 December)
Tax withholding	Lohnsteuer (LSt) via BMF Programmablaufplan (PAP)
Surcharges	Solidaritätszuschlag (5.5% of LSt, with Freigrenze); Kirchensteuer (8% or 9% of LSt)
Social insurance	Rentenversicherung (RV), Krankenversicherung (KV), Pflegeversicherung (PV), Arbeitslosenversicherung (AV)
Tax authority	Finanzamt (local tax office); BZSt (Federal Central Tax Office for ELStAM)
Social insurance authority	Krankenkasse (health fund) collects all SV contributions
Key legislation	EStG §§38--42f; SolZG; SGB IV/V/VI/XI; GewO §108 (payslip); MiLoG (minimum wage)
BMF PAP 2026	Published 12.11.2025 by BMF
Online calculator	bmf-steuerrechner.de
Validated by	Pending -- requires sign-off by a German Steuerberater
Skill version	1.0

Section 2 -- Income Tax Withholding (Lohnsteuer)

Tax Brackets (2026 PAP, Grundtarif)

Taxable Income (EUR, annual)	Rate	PAP Zone
0 -- 12,348	0%	Grundfreibetrag
12,349 -- ~17,500	14% -- ~24%	Progressive zone 1
~17,501 -- ~68,500	~24% -- 42%	Progressive zone 2
~68,501 -- 277,825	42%	Proportionalzone
277,826+	45%	Reichensteuer

Germany uses the BMF PAP formula (not simple brackets). The PAP annualises the pay period, computes annual tax, then divides back. See de-payroll.md Section 3 for the exact UPTAB formula.

Steuerklassen (Tax Classes)

Class	Who	Key Feature
I	Single, divorced, widowed	Grundtarif
II	Single parent	Grundtarif + Entlastungsbetrag (EUR 4,260)
III	Married, sole/higher earner	Splittingverfahren (KZTAB=2)
IV	Married, both earning similarly	Grundtarif (with optional Faktor)
V	Married, lower earner	Special MST5_6 method, no allowances
VI	Second employment	No Pauschbeträge, highest withholding

Solidaritätszuschlag (2026)

Item	Value
Rate	5.5% of Lohnsteuer
Freigrenze (Stkl I/II/IV/V/VI)	Annual LSt up to EUR ~20,500 → SolZ = 0
Freigrenze (Stkl III)	Annual LSt up to EUR ~41,000 → SolZ = 0
Phase-in (Gleitzone)	11.9% marginal rate above Freigrenze

Kirchensteuer

Land	Rate
Bavaria, Baden-Württemberg	8% of Lohnsteuer
All other Länder	9% of Lohnsteuer
Applies only if	Employee is a registered church member (R > 0 in ELStAM)

Section 3 -- Social Security -- Employee Deductions (2026)

Contribution Rates and Ceilings

Branch	German Name	Employee Rate	Monthly Ceiling	Max Employee/Month
Pension	Rentenversicherung (RV)	9.30%	EUR 8,450	EUR 785.85
Health	Krankenversicherung (KV)	7.30% + ZB/2	EUR 5,812.50	varies
Care	Pflegeversicherung (PV)	see table below	EUR 5,812.50	varies
Unemployment	Arbeitslosenversicherung (AV)	1.30%	EUR 8,450	EUR 109.85

Average Zusatzbeitrag (ZB) for 2026: 2.50% (varies by Krankenkasse). Employee KV = 7.30% + 1.25% = 8.55%.

Pflegeversicherung Employee Rates (2026)

Situation	Employee Rate	Notes
Childless, age 23+	2.40%	Kinderlosenzuschlag of 0.60%
1 child	1.80%	Base rate
2 children	1.55%	Beitragsabschlag 0.25%
3 children	1.30%	Beitragsabschlag 0.50%
4 children	1.05%	Beitragsabschlag 0.75%
5+ children	0.80%	Beitragsabschlag 1.00%
Sachsen exception	+0.50% on all above	Buß- und Bettag adjustment

Beitragsbemessungsgrenzen (2026)

Ceiling	Monthly	Annual	Applies To
KV/PV-BBG	EUR 5,812.50	EUR 69,750	Health + Care
RV/AV-BBG	EUR 8,450.00	EUR 101,400	Pension + Unemployment
JAEG (Versicherungspflichtgrenze)	EUR 6,450.00	EUR 77,400	Threshold for PKV opt-out

Section 4 -- Social Security -- Employer Contributions (2026)

Employer Rates and Ceilings

Branch	Employer Rate	Monthly Ceiling	Max Employer/Month
Pension (RV)	9.30%	EUR 8,450	EUR 785.85
Health (KV)	7.30% + ZB/2	EUR 5,812.50	varies
Care (PV)	1.80%	EUR 5,812.50	EUR 104.63
Unemployment (AV)	1.30%	EUR 8,450	EUR 109.85

PV employer rate is 1.80% in all Länder except Sachsen (1.30% in Sachsen; employee pays the extra 0.50%).

Employer-Only Contributions (not deducted from employee)

Contribution	Rate	Base
Umlage U1 (sick pay, < 30 employees)	0.9% -- 4.1% (varies by Krankenkasse)	Gross up to KV-BBG
Umlage U2 (maternity)	0.19% -- 0.8% (varies)	Gross up to KV-BBG
Insolvenzgeldumlage	0.06%	Gross up to RV-BBG
Berufsgenossenschaft (accident insurance)	varies by industry (0.5% -- 10%+)	Gross (industry-specific ceiling)

Total Employer Cost Estimate (average employee, EUR 4,500/month gross)

Item	Amount
Employer SV (RV+KV+PV+AV)	~EUR 953
Umlagen (U1+U2+Insolvenz)	~EUR 50--70
Berufsgenossenschaft	varies
Total employer add-on	~21--25% of gross

Section 5 -- Minimum Wage and Overtime

Minimum Wage (Mindestlohn, 2026)

Item	Value
Statutory minimum	EUR 13.90 per hour
Minijob threshold	EUR 603 per month
Midijob (Übergangsbereich)	EUR 603.01 -- EUR 2,000 per month

Working Hours and Overtime

Rule	Detail
Standard weekly hours	No statutory standard; typically 35--40 hours per employment contract/collective agreement
Maximum daily hours	8 hours (ArbZG §3); extendable to 10 hours if averaged to 8 over 6 months
Maximum weekly hours	48 hours (6 x 8); extendable to 60 hours with compensatory rest
Overtime regulation	Not federally mandated beyond ArbZG limits; overtime pay and surcharges governed by Tarifvertrag (collective agreement) or individual contract
Typical overtime surcharges	25% (weekday), 50% (Saturday/Sunday), 100% (public holidays) -- per collective agreements
Tax treatment of surcharges	Night work (20:00--06:00) surcharges up to 25% of Grundlohn are tax-free per §3b EStG; Sunday 50% tax-free; public holiday 125--150% tax-free

Section 6 -- Mandatory Benefits

Annual Leave (Bundesurlaubsgesetz)

Entitlement	Detail
Minimum statutory	20 working days (based on 5-day week); 24 days (based on 6-day week)
Typical contractual	25--30 days
Carry-over	Must be used by 31 March of following year (§7(3) BUrlG)

Sick Leave (Entgeltfortzahlungsgesetz)

Entitlement	Detail
Employer-paid sick leave	6 weeks (42 calendar days) at full pay per illness per year
After 6 weeks	Krankengeld from Krankenkasse (~70% of gross, max 90% of net) for up to 78 weeks
Medical certificate	Required from day 4 of absence (employer may require from day 1)

Maternity Leave (Mutterschutzgesetz)

Entitlement	Detail
Pre-birth protection	6 weeks before expected due date (voluntary opt-out possible)
Post-birth protection	8 weeks mandatory (12 weeks for premature/multiple births)
Pay	Mutterschaftsgeld from Krankenkasse (EUR 13/day) + employer top-up to full net salary

Parental Leave (Elternzeit, BEEG)

Entitlement	Detail
Duration	Up to 3 years per parent (per child)
Elterngeld	65--67% of net income, EUR 300--1,800/month, for 12 months (+2 partner months)
ElterngeldPlus	50% of Elterngeld for up to 24 months

13th Month / Christmas Bonus

No statutory obligation. Commonly paid per Tarifvertrag or employment contract (Weihnachtsgeld, typically 50--100% of monthly salary).

Section 7 -- Payslip Requirements

German employers must provide an itemised payslip (Entgeltabrechnung/Lohnabrechnung) per §108 GewO.

Mandatory Payslip Fields

Field	Required
Employee name, address, tax ID	Yes
Pay period	Yes
Steuerklasse and Kirchensteuermerkmale	Yes
Bruttolohn (gross salary)	Yes
Lohnsteuer withheld	Yes
Solidaritätszuschlag withheld	Yes
Kirchensteuer withheld (if applicable)	Yes
Employee SV contributions (RV, KV, PV, AV -- each separately)	Yes
Zusatzbeitrag rate (KV)	Yes
Nettolohn (net salary)	Yes
Employer SV contributions (informational)	Recommended
Hours worked / overtime	Yes (if relevant to pay)
Deductions (Vorschüsse, Pfändungen, VWL, bAV)	Yes

Delivery

Paper or secure electronic format
Retention: employer must keep payroll records for minimum 6 years (tax) / 10 years (social security)

Section 8 -- Filing Obligations

Monthly

Obligation	Deadline	To Whom
Lohnsteuer-Anmeldung (wage tax return)	10th of following month	Finanzamt (ELSTER)
SV-Beitragsnachweise (contribution statements)	2nd-to-last working day of current month (estimated)	Krankenkasse (via SV-Meldungen)
SV payment	5th-to-last working day of current month (draft debit)	Krankenkasse
DSN-equivalent: DEÜV-Meldungen	Monthly with payroll	Deutsche Rentenversicherung via Krankenkasse

Annual

Obligation	Deadline	Notes
Lohnsteuerbescheinigung	By 28 February of following year	Electronic transmission to Finanzamt; copy to employee
Jahresmeldung (SV annual notification)	By 15 February of following year	To Krankenkasse
Lohnsteuer-Jahresausgleich (employer)	Optional; December payroll	§42b EStG; employer may reconcile withholding

Employee Income Tax Return

Scenario	Deadline
Mandatory filers (e.g., Stkl III/V combination)	31 July of following year
With Steuerberater	31 December of following year (may be extended)
Voluntary filers	Up to 4 years retroactively

Section 9 -- Common Payroll Patterns

Typical Bank Statement Descriptions (Salary Credits)

Pattern	Classification
GEHALT, LOHN, ENTGELT, NETTOBEZUG	Net salary payment
NACHZAHLUNG GEHALT	Salary back-payment (sonstige Bezüge rules may apply)
WEIHNACHTSGELD, 13. GEHALT	Christmas bonus / 13th salary
URLAUBSGELD	Holiday bonus
ABFINDUNG	Severance (Fünftelregelung may apply)
ELTERNGELD	Parental allowance (not from employer -- from state)
KRANKENGELD	Sick pay from Krankenkasse (not taxable as wages)

Typical Employer Debit Patterns

Pattern	Classification
FINANZAMT LST, LOHNSTEUER	Wage tax + SolZ + KiSt remittance
[KRANKENKASSE NAME] SV-BEITRAG	Social insurance contributions
BG BEITRAG, BERUFSGENOSSENSCHAFT	Accident insurance premium
UMLAGE U1 U2	Sick pay / maternity Umlagen

Section 10 -- Interaction with Other Skills

Scenario	Skill to Use
Employee payroll (Lohnsteuer + SV)	This skill (germany-payroll.md)
Detailed PAP formula and worked examples	de-payroll.md
Self-employed income tax (Einkommensteuer)	de-income-tax.md
Self-employed social contributions	de-social-contributions.md
Gewerbesteuer (trade tax)	de-trade-tax.md
Umsatzsteuer / VAT	germany-vat-return.md
Bookkeeping	germany-bookkeeping.md

Key Handoff Points

Payroll → Bookkeeping: Gross wages + employer SV are P&L expenses. LSt/SolZ/KiSt and employee SV are payroll liabilities (Verbindlichkeiten) until remitted. Employer SV is booked to Sozialaufwendungen.
Payroll → Income Tax: Lohnsteuerbescheinigung feeds into the employee's Einkommensteuererklärung. The PAP computation in de-payroll.md is the reference for validating withholding amounts.
Payroll → SV: Beitragsnachweise and DEÜV-Meldungen must reconcile with payslip amounts. The Krankenkasse collects all four branches centrally.

PROHIBITIONS

NEVER compute Lohnsteuer without the BMF PAP formula -- simple bracket percentages are wrong
NEVER confuse KV/PV-BBG (EUR 5,812.50/month) with RV/AV-BBG (EUR 8,450/month)
NEVER apply childless PV surcharge to employees with children
NEVER charge SV contributions above the Beitragsbemessungsgrenze
NEVER omit the Sachsen PV exception
NEVER treat Minijobs (≤ EUR 603/month) as standard payroll -- different rules apply
NEVER assume Kirchensteuer is 9% everywhere -- Bavaria and Baden-Württemberg use 8%
NEVER forget employer-only costs (Umlagen, BG, Insolvenzgeldumlage) when computing total cost
NEVER issue a payslip missing any field required by §108 GewO
NEVER present payroll computations as definitive -- direct to Steuerberater/Lohnbuchhalter for sign-off

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a Steuerberater or Lohnbuchhalter in Germany) before implementation.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.

Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).

Germany Payroll

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