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WORKING IN GERMANY

What happens to your work permit if you lose your job in Germany?

Losing a job can be a scary experience - especially for people living in Germany on a work-based permit. Luckily, though, getting laid off doesn't always have to mean getting on the first flight home.

A sign points to the Foreigners' Authority and the Public Order Office in Frankfurt am Main.
A sign points to the Foreigners' Authority and the Public Order Office in Frankfurt am Main. Photo: picture alliance/dpa | Sebastian Gollnow

In tough economic times, layoffs are unfortunately a fact of life. You can feel settled in your job, enjoying life in a new country, and then suddenly find yourself facing unemployment and uncertainty.

If that happens, it’s important to know the right steps to take to ensure you don’t end up losing your right to stay in Germany. This partly depends on your nationality and the type of visa you have.

For EU, EEA and Swiss citizens, the situation is relatively simple. People from these countries don’t require a permit to live and work in Germany and can simply sign on to either Arbeitlosengeld I (unemployment insurance) or Arbeitslosengeld II (long-term unemployment benefits) until they’re back on their feet.

For non-EU citizens who rely on a residence permit to live in Germany, however, things are a little trickier.

You’ll need to understand what you’re entitled to and communicate with the relevant authorities to ensure your permit stays valid and you’re given the time you need to find a new job. 

How does losing your job affect your visa? 

If you lose your job in Germany while here on a work permit, your visa doesn’t automatically expire, but there are a few steps you’ll need to take right away to ensure that it doesn’t become invalid.

Firstly, you’ll need to get in touch with your local Foreigners’ Office, or Ausländerbehörde, in order to tell them your circumstances have changed. 

According to the German Residence Act, you need to do this within two weeks of hearing that your working contract will end sooner than expected.

Don’t worry about giving too many details of what has happened: the authorities simply need to be able to identify you and have confirmation of the date at which your employment ended. 

READ ALSO: EXPLAINED: What you should know if you want to quit your job in Germany

That means a simple letter detailing your name, nationality and date of birth and the date of termination should suffice, along with the official termination letter from your employer. Ideally, this should be sent via email or post to the Ausländerbehörde you normally deal with.

Once the Foreigners’ Office are aware that you’re no longer employed, they will change the expiry date on your visa. This will give you a certain amount of time to find a new position after losing your old one. 

How long do I have to look for a new job?

The amount of time you have to look for a new job slightly depends on your Ausländerbehörde, but six months is relatively standard, with three months being the absolute minimum.

In exceptional circumstances, you may even get as many as twelve months – though this is a rarity and again up to the discretion of the case workers. 

The clock starts generally starts ticking the day your employment relationship ends, so don’t hang around too long enjoying a life of lie-ins and late brunches. 

According to career coach Chris Pyak, who helps foreigners break into the German job market, people from other countries often don’t account for the delays they may face when dealing with German bureaucracy.

An employer and employee shake hands after a job interview.

An employer and employee shake hands after a job interview. Photo: picture alliance/dpa/dpa-tmn | Klaus-Dietmar Gabbert

“The number one mistake that I see is that people let too much time go by before they apply a systematic approach to their job-hunt,” he said. “And they wait way to long before seeking help if they just keep getting rejections.”

Though six months may sound like a long time, there can often be lengthy delays even after you’ve got that all-important job offer. This can add at least another couple of months to the entire process, Pyak explained. 

“Jobseekers need to keep in mind that German HR departments work very slowly,” he added. “It is very common that you need two months to get a contract after a company has already decided that they’ll hire you.”

Can I claim benefits during this time?

In most cases, yes – but only a very specific type. 

If you’ve been employed in Germany for 12 months in the last 30, that means you’ll have racked up enough unemployment insurance contributions to be eligible for Arbeitslosengeld I (ALG I), or short-term unemployment benefit.

These contributions will have been taken out of your salary monthly and entitle you to up to 12 months of unemployment insurance payments. These amount to 60 percent of your previous salary each month, or 67 percent if you have kids. 

READ ALSO: Reader question: Can I still get German citizenship after claiming benefits?

Bear in mind that if you take severance pay, you may waive your right to ALG I for up to three months, so you may have to make some careful calculations before accepting a severance offer.

If you’re not entitled to ALG I, it’s best to try and negotiate the best severance package you can, as non-EU citizens who are on temporary permits aren’t entitled to longer-term unemployment benefits, i.e. Arbeitslosengeld II (ALG II). 

What happens once I find a new job?

Since most work permits are dependent on a specific working relationship between you and your employer, you will usually need permission from the Ausländerbehörde to start a new job. 

“When changing jobs, employees with a residence title are required to contact the competent foreigners authority,” Christian Westermann, lawyer and labour law specialist at the law firm Rose & Partner in Hamburg, said in a statement. “Otherwise, the title may expire and they may have to return to their home country.” 

In some cases, like with the EU Blue Card, your job may need to meet a certain salary threshold to be suitable. In other cases, the Foreigners’ Office may want to check that it is in a relevant field and matches your qualifications.

Job applicant works on CV

A job applicants works on their CV. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

READ ALSO: What happens to your EU Blue Card if you lose your job in Germany?

There are two situations in which you won’t have to ask permission from the Foreigners’ Office and can simply email them a copy of your new contract once you receive it:

  • If you’ve been on your current working visa for at least two years, or,
  • If you’ve been in Germany on any type of visa for at least three years (though time spent studying only counts as half).

Once the Foreigners’ Office accepts your request to change employer, you will need to switch to a new residence permit that is linked to this employment relationship. This can take another few months. 

What if I don’t find a new job? 

If you don’t find a new job within the allotted time, you will usually have to leave Germany before your residence permit expires. 

However, there are some other options for staying the country, such as finding a university or language course to study on or having your spouse apply for a family reunification visa. 

A qualified immigration lawyer can talk you through your options, or you can conduct some research yourself online.

READ ALSO: How to get fast-track permanent residency rights in Germany

In any case, it’s important to apply for any extensions or changes with plenty of time before your current visa expires. That will avoid accidentally overstays that could result in an order to leave the country. 

If you do end up leaving, it can take several months to be able to return to Germany. That’s because you will have to continue your job search outside of the country and start the process of visa and residence permit applications once again from scratch. 

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For members

WORKING IN GERMANY

Five things to know about salaries in Germany

Finding a job is typically a top priority when planning a move to Germany. The country boasts the third largest economy in the world and a continuing need for skilled professionals. 

Five things to know about salaries in Germany

If you are moving to Germany, you might soon start looking for a job in the country. However, like many other aspects of living abroad, there are several cultural differences and specificities when it comes to job hunting in Germany – especially when it comes to salaries.

Here are five things to know about salaries in Germany.

There is a minimum wage in Germany

Germany’s minimum wage of €12.41 per hour, pre-tax came into effect at the start of this year. This amounts to a monthly salary of €2,054 which ranks ninth in the world. The minimum wage will rise again in 2025 to €12.82 per hour before tax deductions.

There have been calls recently to hike the salary up higher to €14 per hour.

READ ALSO: Millions of workers in Germany ‘earning less than €14 per hour’

Find out salary expectations

Germany does not require companies to list salary ranges for listed positions. But that may be changing soon. The EU parliament passed a wage transparency law to require companies to publish annual reports detailing wage and wage discrepancy information. The rules, which are set to go into effect in 2027, are intended to help close the gender pay gap. 

In the meantime, employees can utilise online resources to find industry averages and expectations for different roles:

  • Gehalt.de offers users access to salary information on more than 800 professions
  • Online platform, Kununu provides compensation information and employer reviews to users in the DACH region  
  • Berlin residents can utilise REDSOFA’s salary survey for an overview of salary averages in the country’s capital city

As of April 2023 the average gross monthly salary was €4,323 according to Germany’s Federal Statistical Office.

Two-thirds of full time workers make less than this average monthly salary and one-third of workers earn more than this average monthly salary.

While wages after deductions may be less than similar roles in other countries, it is also important to take into consideration what other benefits come with a salary. Paid holiday leave, pension contributions, long notice periods and annual bonuses can help make up some of that difference. 

READ ALSO: How much do employees in Germany typically earn?

Check your payment schedule

Internationals can usually expect their salary once a month when working in Germany. Many German companies choose to pay employees either on the 1st or 15th of the month. It is also important to note that most employees can expect to receive their first pay check within 30 or 45 days of starting. 

For positions that offer yearly bonuses, these payments are included in a 13th pay check which are subject to income tax.  

A person works on a laptop.

A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

How many hours do you work?

When looking for a job, don’t forget to check how many hours you can expect. Job descriptions will include expectations for time commitments. 

Mini-jobs, as expected from the name, are limited in hours and pay. Employees can expect up to €538 per month. Mini-jobs do not provide social security because they do not require social security contributions. Employees are also not automatically covered by health and nursing care insurance. 

Teilzeit, or part time jobs, are defined as any job where working hours are less than a full time position.

A common misconception is that part-time work requires working 20 hours or less a week. But an employee working five days a week for 30 hours, at a position that is typically 40 hours when full time can also be defined as a part time worker. 

READ ALSO: The rules in Germany around ‘mini’ and ‘midi jobs’

In fact, Germany has a term for workers who work between 28 and 36 hours a week. Vollzeitnahe Teilzeit, or nearly full time part time workers, can be a popular choice for some people, including parents. These positions can give employees more flexibility to balance work and family responsibilities. It is important to note that these workers are paid according to their time worked, so it will still amount to less than full time.

Depending on the work schedule, part time employees can earn the same amount of vacation as their full-time counterparts. That’s because holiday leave is calculated based on days worked, not hours. If a part time worker comes in five days a week, they will be eligible for at least 20 days of holiday. If that same part time worker comes in three days a week, they will be legally entitled to twelve days of vacation, even if they worked the same hours as the other employee. 

In most companies, weekly working hours between 35 and 40 hours are considered full-time employment or Vollzeitbeschäftigung

Watch out for the gross v. net difference

Before you sign the dotted line, it will be important to check how much of your gross salary you’ll be able to keep come pay day. Companies that include salary expectations in descriptions include gross salary (Bruttoeinkommen) – not the net income after taxes and deductions (Nettoeinkommen). The amount deducted will depend on how much you earn, the tax class you’re in and on other factors such as how much you’re paying for healthcare but it is usually around 40 percent. 

Salaried employees can find information on the deductions on their pay slip. Some to expect to see include:

  • Taxes are deducted directly from the gross pay. The amount is based on the tax bracket your salary falls within 
  • A percentage of your gross salary is also deducted for your pension / retirement contributions
  • Church taxes between eight and nine percent of your salary will also be due if you are affiliated with a religion
  • Unemployment insurance amounts to a 2.5 percent deduction from your gross salary. It is important to note that the insurance covers a salary up to €90,600 
  • Health insurance contribution rates are typically split between employers and employees. The rate depends on the provider. In 2024, the TK contribution rate to health insurance is 15.8 percent of the gross income

READ ALSO: What you need to know about your payslip in Germany 

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