When looking for drivers, we often notice that some members of this community are seeking job offers based on a German employment contract. However, during job interviews, we hear stories that working in Germany is often not as perfect as it seems. To help you make the right decision and better understand the differences between contracts, we’re sharing information on the main differences between Lithuanian and German employment contracts and what’s important to consider.

Higher net pay

In most Lithuanian staffing agencies, CE-category drivers go on assignments in Germany, so they are paid per diem. Given that income tax rates in Germany are higher (avg. 42% compared to an avg. 20% tax rate in Lithuania) and daily allowances are not paid, the net pay of Lithuanian contracts is often higher than that of German contracts.

Healthcare and insurance

When working under a Lithuanian employment contract and paying taxes in Lithuania, drivers are insured in Lithuania. This means that the employer pays contributions to “Sodra,” and the driver is covered by mandatory health insurance (PSD). If a driver is sick, they are issued a sick leave certificate and receive sick pay. The employee may also see a doctor or, for example, if on a business trip in another country, seek treatment at local medical facilities using their EU Health Insurance Card.

When working under a German employment contract, a different system applies, as a portion of the driver’s taxable salary goes toward health insurance and other social security funds. To access healthcare services, you must register with a German health insurer and choose a health insurance fund. 

Social security

When working under a Lithuanian employment contract, the driver accumulates Lithuanian work experience, and their pension is calculated according to the Lithuanian system. In the event of unemployment, such a person must register with the Employment Service and is granted unemployment benefits.

When working under a German employment contract, you accrue pension in Germany; however, it is important to note that if you work in several different countries, your future pension is “split” according to your length of service. Also, if you lose your job, you can only receive unemployment benefits in Germany if you meet certain conditions (you have worked for a specified period of time, you have paid the required contributions, etc.). Thus, this process is more complicated and can sometimes cause additional difficulties.

Job flexibility

Working under a German employment contract often means that the driver is employed directly by a logistics company, rather than being hired by an agency to provide driving services. First and foremost, this means that, if necessary, the employee cannot easily and quickly change jobs. If problems or dissatisfaction arise regarding the job, the employment agency can easily transfer the driver to another job, i.e., to another client. Such opportunities do not exist when working directly for a client. 

It is also important to note that when working directly for a client, you must work according to a set schedule rather than on a rotational basis. This means that the work schedule is not particularly flexible and often may not accommodate personal needs.

Accommodation and additional expenses

The employment agency is required to ensure that, upon arrival at the workplace, the employee is provided with suitable accommodation or a facility that includes a kitchen, restrooms, and other necessary amenities. When working under a German employment contract, the driver must arrange their own accommodation, so they have to rent a place to live on their own. If you choose to work under a German employment contract, it’s important to remember to include housing rent and living expenses in your personal budget.

It is also important to factor in the fact that, when working in Germany, you do not receive fuel compensation for commuting to work. Since you are working directly in Germany and are not on a business trip, transportation costs are considered personal expenses that you must cover individually from your own budget.

Keywords: work for drivers, work for long-haul drivers, employment contract