For clients and freelancers Indication

Freelancer or employee in Germany: cost per hour

An employee costs more than gross pay and does not work on holidays, public holidays and sick days. Compare the cost per productive hour with a freelancer’s hourly rate.

Your details

Gross pay per month

Hours per week

Days of leave per year

Public holidays on weekdays

In 2026 nationwide 7 on weekdays; more depending on the state.

Sick days (your assumption)

Other employer costs per year (workplace, training …)

Freelancer hourly rate (excl. VAT)

Federal state (place of work)Determines the church tax rate (8% in Bavaria and Baden-Württemberg, 9% elsewhere) and long-term care in Saxony.

Additional contribution of your health insurer

Empty = average additional contribution 2026 (2.9%). Your insurer publishes its own rate.

Children under 25

Childless and aged 23 or over (long-term care surcharge)

Freelancer or employee?Values 2026

Result

Employee cost per productive hour–

Productive hours per year–

Employer cost per year–

Freelancer for the same hours–

Explanation

The comparison only shows costs. Freelancers pay their own health, care and pension provision and price idle time, acquisition and the risk of lost income into their rate. Whether someone is self-employed or an employee does not depend on the price but on how the work is actually done; see the bogus self-employment check.

Note: an indication, not legal or tax advice

This calculation is based on the general statutory rules and the values published for 2026. It is not legal, tax or payroll advice. Collective agreements, employment contracts and works agreements may provide more favourable rules.

Sources and values used

Item	Value	Source
Employer cost	as in the employer cost calculator (without U1/U2/accident insurance)	BMAS – Gesamtsozialversicherungsbeitragssatz und Faktor F 2026 (BAnz AT 18.12.2025 B5) (in German)
Minimum leave	20 days on 5 days a week	Bundesurlaubsgesetz, § 3 (in German)
Productive hours	weekly hours × (52 − days absent / 5)	calculation method

Sources checked on 15 October 2026.