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How to Calculate Billable Hours in Germany

Harvest helps teams and freelancers in Germany accurately track billable hours, ensuring compliance with labor laws through reliable time recording features.

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What should you charge per hour?

Most freelancers and consultants dramatically undercharge. This calculator accounts for what most people miss: non-billable time, taxes, and overhead.

$
Accounting for vacation, holidays, sick days
60%
Most freelancers can bill 50-70% of their time. The rest goes to admin, marketing, proposals, and learning.
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Software, insurance, equipment, accounting, taxes beyond income tax, etc.
Your break-even rate $0
Recommended rate (+20% buffer) $0
Billable hours per week 0h
Equivalent daily rate $0

Start tracking your billable hours

Walk through the entire flow below. Start a timer, check your reports, and create a real invoice — all in three clicks.

Go ahead — start tracking!

One click and you're timing. Try it right here: start a timer, add an entry, edit the details. This is exactly how it feels in Harvest.

  • One-click timer from browser, desktop & mobile
  • Works inside Jira, Asana, Trello, GitHub & 50+ tools
  • Duration or start/end — your call
  • Day, week & calendar views to stay on top of it all
  • Friendly reminders so no hour gets left behind
Acme Corp
Website Redesign
Homepage layout revisions
1:24:09
Content Strategy
Blog calendar planning
1:30:00
SEO Audit
Technical audit report
0:45:00
Brand Guidelines
Color system documentation
2:15:00
Logo Concepts
Initial sketches round 1
1:00:00
Today's total 6:54:09

Understanding Billable Hours Under German Law

Calculating billable hours in Germany requires adherence to both national labor laws and specific industry practices. According to the German Federal Labour Court's ruling on September 13, 2022, employers are mandated to implement systems for recording employee working hours, including overtime and breaks. This ruling follows the 2019 European Court of Justice decision, reinforcing the need for precise time tracking.

Employers must maintain records detailing the start, end, and duration of daily work, with the option to use electronic systems like spreadsheets. Compliance is crucial, as penalties for infractions can reach up to €15,000 per breach. For freelancers, the average hourly rate in Germany is €104, with specific sectors commanding even higher rates. These rules ensure clarity and compliance, but they also highlight the importance of using reliable time tracking tools.

Key Considerations for Calculating Billable Hours

The process of calculating billable hours in Germany involves several key considerations, particularly regarding overtime and travel time. Standard working hours are set at 8 hours per day, extendable to 10 hours under certain conditions. Breaks are mandatory, with 30 minutes required for shifts over 6 hours and 45 minutes for those over 9 hours. Additionally, employees must have 11 consecutive hours of rest between workdays.

For freelancers, billable hours must account for additional costs, such as taxes and insurance. Typically, freelancers add 40-45% on top of their net income to cover these expenses. This proactive approach ensures financial stability and compliance with German tax regulations, especially considering income tax rates that range from 14% to 42%.

Leveraging Harvest for Accurate Time Tracking

For businesses and freelancers aiming to streamline their billing processes, Harvest offers a powerful solution. With its one-click start/stop timers and manual entry options, Harvest simplifies the process of tracking both billable and non-billable hours. This is particularly useful in Germany, where precise time recording is legally mandated. Harvest's integration capabilities with platforms like Asana and Trello further enhance its utility.

Harvest also provides detailed reports on time, expenses, and budgets, helping users stay on top of their financials. By setting project-specific alerts, users can avoid surpassing budgetary limits, ensuring projects remain profitable. With a free 30-day trial available, without the need for a credit card, Harvest is an accessible option for those seeking to improve their time management and billing accuracy.

Ensuring Compliance with German Labor Laws

Compliance with German labor laws is essential for any business or freelancer operating in the country. The German Working Time Act (ArbZG) outlines the necessity for detailed time tracking, which Harvest supports through its comprehensive features. Employers must not only track the duration of work but also ensure breaks and rest periods are properly recorded.

Harvest's reporting and management capabilities make it easier to adhere to these regulations, providing peace of mind and reducing the risk of hefty fines. The tool's ability to manage permissions and approvals ensures that only authorized personnel have access to sensitive time tracking data, further safeguarding compliance efforts.

Calculate Billable Hours with Harvest in Germany

See how Harvest supports accurate time tracking for billable hours in Germany, ensuring compliance with labor laws.

Harvest screenshot showing billable hours tracking in Germany

How to Calculate Billable Hours in Germany FAQs

  • In Germany, employers must record the start, end, and duration of daily working hours, including breaks and overtime. This requirement stems from a 2022 ruling by the German Federal Labour Court, which mandates time recording systems for employees. Non-compliance can lead to penalties up to €15,000 per breach.

  • Freelancers in Germany typically calculate billable hours by considering their hourly rate and additional costs such as taxes and insurance. The average hourly rate is €104, and freelancers often add 40-45% to cover these expenses. Accurate tracking ensures financial stability and compliance with tax regulations.

  • Harvest helps track billable hours through one-click timers and manual entry, allowing users to accurately log work hours. It offers detailed reports and project-specific alerts, ensuring users stay within budget limits. Integrations with tools like Asana and Trello enhance its functionality.

  • When calculating billable hours, consider standard working hours, mandatory breaks, overtime, and travel time. In Germany, the standard workday is 8 hours, with breaks required for shifts over 6 hours. Accurate logging of these factors ensures compliance and accurate billing.

  • Travel time can be considered billable hours if it occurs during work hours or is necessary for job duties. Specific agreements or industry standards determine how travel is billed. Businesses should ensure transparent policies to align with client expectations and legal requirements.

  • Harvest integrates with numerous platforms, including Asana, Trello, Jira, Slack, and GitHub. These integrations streamline workflows by allowing seamless time tracking across different tools, enhancing productivity and accuracy in billing processes.

  • Yes, Harvest can track overtime hours by creating specific tasks for overtime work. Users can manually log additional hours beyond the standard workday, ensuring accurate billing and compliance with labor laws.