Payslips: how long to keep them, on both sides
Depending on the purpose, payslips should be kept for between six and ten years. They serve as important evidence in tax audits and towards pension and social security bodies. For employees, keeping them long term until retirement is worthwhile – periods of employment and entitlements can then be shown reliably.
Key points
- Employers in Germany must keep payslips for at least six years – where they feed into the determination of profit, the period extends to ten years.
- Digital archiving is permitted and saves space, but requires regulated data security and access rights.
- Employees are not obliged to keep them – it is still recommended, until retirement.
- Current software simplifies archiving, protects sensitive data and keeps statutory requirements.
- Anyone documenting incorrectly or not at all risks legal consequences and substantial fines.
The statutory periods for employers
Employers are legally obliged to keep certain records for set periods – payslips for at least six years, where they are relevant for tax. The legal basis is § 41 of the German Income Tax Act (EStG). The rule ensures that audits by tax offices or social security bodies remain properly possible.
A longer period where profit is determined
Where payslips feed into the determination of business profit, a period of ten years applies (§ 147 of the German Fiscal Code, AO). It protects against subsequent tax demands, audits and fines.
Relevant records
- Payslips
- Wage tax returns
- Proof of contributions to social security
- Employment contracts and amendment agreements
- Wage accounts
These duties apply regardless of company size. Digital retention is permitted as long as the records stay legible and auditable at all times, data integrity is preserved and information can be reproduced in a traceable way.
What applies to employees
Employees are not legally obliged to keep payslips. Stiftung Warentest nevertheless advises keeping them at least until retirement – for discrepancies with the pension insurance, for clarifying periods of employment or for questions from former employers. Old payslips also help with loan applications or proof of income.
Why keeping them is worthwhile
- Evidence for pension entitlements and periods of work
- Proof in disputes with employers
- Support for loan applications or statements of assets
- A check against the annual pension statement
Digital retention – space-saving with the right data security
Digital archiving – as a PDF, a scan or through an employer portal – saves storage and allows quick access. But efficiency must not come at the cost of data security:
- Use cloud services only with two-factor authentication
- Encrypt files before they sit on devices or servers
- Regular backups on external media or secure cloud services
- Keep access and password information separate – in a password manager, for instance
A well-considered mix of encryption, access control and backup avoids data loss – particularly over many years.
Software and tools for managing them
Professional management is worthwhile not only for large companies – small businesses and the self-employed benefit too:
- Spreadsheet templates – for the self-employed or small teams with modest needs; to be kept by hand, but flexible.
- Professional payroll software – automates capture, storage and archiving, keeps deadlines and reduces sources of error through built-in checks.
- Employee portals – companies make payslips available for download directly; employees access them from anywhere.
- Cloud-based systems – protect against data loss, archive centrally and stay current with the law through automatic updates.
Consequences of breaches
Breaches of the retention periods can lead to fines, problems during audits and legal disputes for employers – particularly where payroll records are missing or incomplete during a statutory audit. Proper archiving, by contrast, creates certainty and transparency and protects against financial risk.
Sources used
- Personio – Lohnabrechnung und Gehaltsabrechnung
- StepStone Magazin – Gehaltsabrechnung aufbewahren
- d.velop Blog – Aufbewahrungsfrist Lohnabrechnungen
- SD Worx Blog – Gehaltsabrechnungen aufbewahren
- SERO Aktenvernichtung – Aufbewahrungsfrist Gehaltsabrechnung
- HeavenHR Blog – Aufbewahrungsfrist Lohnabrechnung für Arbeitgeber
- Verbraucherzentrale – Aufbewahrungspflichten digitaler Unterlagen
- Haufe – Praxisbeispiele zu Aufbewahrungspflichten von Lohnunterlagen