Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in Germany if the relationship looks like employment. |
| Employee via EOR | $79,788 – $82,188 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
Germany contractor risk: Strict. False self-employment (Scheinselbststaendigkeit) is policed by the Deutsche Rentenversicherung status determination procedure (Statusfeststellungsverfahren). If reclassified, the client owes back employer and employee social contributions (up to 4 years, 30 in cases of intent), plus possible fines. Not legal advice.
Want to hire this person in Germany?
Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.