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Onboarding Requirements for EOR Employees in Germany & Purpose

Globalli ensures that mandatory registrations are completed before payroll processing.This article outlines the required onboarding documents and registrations in Germany and explains their purpose.

Updated this week

Employment Contract

What is required:
A signed written employment contract (Arbeitsvertrag).

Purpose:

  • Defines job title, salary, working hours, probation period, notice period, and benefits

  • Ensures compliance with German labor law

  • Serves as the legal foundation of the employment relationship

Passport / National ID

What is required:
Valid passport or EU national ID card.

Purpose:

  • Verifies employee identity

  • Required for payroll registration and tax reporting

  • Needed for social security enrollment

Right-to-Work Permit (if applicable)

What is required:
Valid residence permit with work authorization (for non-EU/EEA nationals).

Purpose:

  • Confirms legal authorization to work in Germany

  • Ensures employer compliance with immigration regulations

  • Required before employment start date

Steuer-ID (Tax Identification Number)

What is required:
11-digit personal Tax ID (Steueridentifikationsnummer).

Purpose:

  • Required to process payroll tax withholding

  • Registered with the employee’s local tax office

  • Used for annual income tax reporting

Tax Class Information (Steuerklasse)

What is required:
Employee’s official tax class (I–VI).

Purpose:

  • Determines income tax withholding level

  • Based on marital status and family situation

  • Retrieved electronically via tax office system (ELStAM)

Health Insurance Choice (Krankenkasse)

What is required:
Employee’s selected statutory health insurance provider (Gesetzliche Krankenkasse) or proof of private health insurance.

Purpose:

  • Mandatory for social security registration

  • Required to calculate health insurance contributions

  • Determines payroll deductions

Employees earning above the statutory threshold may opt for private insurance.

Social Security Registration

What is required:
Employee registration with the German social security system.

Purpose:

  • Enables contributions to pension, unemployment, disability, and long-term care insurance

  • Mandatory employer obligation

  • Required before or at employment start

The employee will receive a social security number (Sozialversicherungsnummer) upon first registration.

Bank Account Details (IBAN)

What is required:
Valid European bank account number (IBAN).

Purpose:

  • Required for salary payment via SEPA transfer

  • Ensures timely and compliant payroll processing

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