When searching for drivers, we often notice that part of this community looks for job offers based on a German employment contract. However, during job interviews, we frequently hear stories that working in Germany is not always as perfect as it may seem. In order to make the right decision and better understand the differences between Romanian and German employment contracts, we are sharing information about the main differences between them and what is important to consider.
Net salary difference
A large part of CE drivers’ income in Romania includes daily allowances, as they are sent on assignments to countries such as Germany. These daily allowances are usually non-taxable, which means that when comparing salaries offered under Romanian and German employment contracts, the amount received after tax under a Romanian contract is often higher. This is because in Germany, a single gross salary is paid, from which all required taxes are deducted, and the per diem system does not apply.
Healthcare system differences
Healthcare and insurance also differ. When working under a Romanian employment contract and paying taxes in Romania, drivers are insured within the Romanian system. This means that the employer pays contributions to the Romanian social security system, and the driver is covered by public health insurance. If the driver becomes ill, they receive a medical certificate and are entitled to sick pay. The employee can visit a doctor in Romania or, for example, if they are on assignment in another country, seek medical attention there using the European Health Insurance Card.
When working under a German employment contract, a different system applies, as part of the driver’s taxed salary is allocated to health insurance and other social security funds in Germany. In order to access healthcare services, you must register with a German health insurance provider and choose an insurance fund.
Different social guarantee systems
Social guarantees are another important factor. When working under a Romanian employment contract, a driver accumulates Romanian work seniority, and their pension is calculated according to the Romanian system. In case of unemployment, the person must register with the Romanian employment authorities and is entitled to unemployment benefits.
When working under a German employment contract, pension contributions are accumulated in Germany. However, it is important to remember that if you work in several countries, your future pension is divided according to your work history in each country. In addition, in the case of unemployment in Germany, benefits can only be received if certain conditions are met, such as having worked for a required period of time and having paid sufficient contributions. Therefore, this process is more complex and can sometimes create additional challenges.
Work flexibility
Working under a German employment contract usually means that the driver works directly for a logistics company rather than being employed through an agency to provide driving services. First of all, this means that if needed, the employee cannot easily and quickly change their workplace. If problems or dissatisfaction with the employer arise, an employment agency can easily transfer the driver to another workplace, meaning to another client, whereas such an option is not available when working directly for a logistics company. It is also important to note that working directly for a client usually involves a fixed schedule rather than rotational work, meaning that the work schedule is less flexible and may not always meet personal needs.
Accommodation and additional costs should also be considered. An employment agency is usually responsible for ensuring that when an employee arrives at the workplace, suitable accommodation or facilities such as a kitchen, bathroom, and other essential amenities are provided. When working under a German employment contract, the driver must take care of their own accommodation, which means renting housing independently. Therefore, it is important to include rent and living expenses in your personal budget.
It is also important to take into account additional costs, such as the fact that when working in Germany, you do not receive compensation for travel or fuel when commuting to work. Since you are working directly in Germany and are not on assignment, these transport costs are considered personal expenses that must be covered from your own budget.