Digital Personnel File 2027

Although the regulation relates to German social security law, it may also be relevant to Swiss companies. This applies in particular to organisations with German subsidiaries or branches, as well as to companies that manage HR and Payroll processes for Germany centrally from Switzerland. 

Furthermore, the legislative change reflects a broader trend: authorities and audit bodies increasingly expect personnel data to be digital, structured and accessible at all times. The digital personnel file thus becomes not only a matter of efficiency, but also of compliance and governance. 

Key points at a glance

• There is no general obligation to maintain digital personnel files in Germany  
• However, remuneration records relevant for audit purposes must be kept electronically from 1 January 2027 at the latest 
• The exemption from this obligation, which has been available until now, ends on 31 December 2026 
• From 1 January 2027, affected employers must, as a general rule, maintain the relevant remuneration records electronically
• The relevant legal basis includes, in particular, Section 28f of Book IV of the Social Code (SGB IV) and Sections 8 and 9a of the Contribution Procedures Regulation (BVV)
• For companies with corresponding obligations under labour or social security law in Germany, the regulation increases the practical need for end-to-end digital HR, Payroll and document processes

What legal provisions underpin the change in Germany? 

In connection with the legislative change in Germany, there is often talk of a ‘mandate for digital personnel files’. On closer inspection, however, no such mandate exists in Germany. The legislation focuses on the accompanying remuneration records required for social security audits. 

Section 28f of Book IV of the Social Code – The basic obligation
Section 28f ofBook IV of the SocialCode obliges employers to keep records of remuneration for each employee and to store them in an organised manner. The records must be traceable and verifiable at all times. 

Section 8 of the Contributions Procedure Regulation(BVV) – Which records are relevant
The Contributions Procedure Regulation (BVV) sets out the specifics of this obligation.Section 8 of the BVV defines in detail which information and supporting documents must be included in the remuneration records. These include, amongst other things, information on employment, social security, payslips and exemption from social security contributions. 

Section 8(2) BVV – The digitalisation requirement
The key change for HR departments is set out inSection 8(2) BVV. This stipulates that certain accompanying remuneration records must be kept electronically. This has, in principle, been the case since 2022, albeit with the option of an exemption. This exemption will end at the end of 2026. From 2027, the electronic storage of the relevant payroll records will apply to all affected employers.  

Section 9a of the BVV – The technical requirements
Electronic storage alone is not sufficient. Section 9a of the BVV stipulates that the social security institutions may define common technical standards. The records must be stored in a structured and identifiable manner, be legible and available for audits.  

Section 28p SGB IV – The audit
These new requirements stem from the increasing digitalisation of audits carried out by the German pension insurance providers. Companies must therefore be able to provide documents relevant to audits in electronic form.  

What does this mean for Swiss companies? 

For purely Swiss companies that have no connection to the social security system in Germany, the German BVV does not, in principle, impose any obligations. 

However, a more detailed review is recommended, particularly for companies that: 

• operate companies or branches in Germany, 
• are subject to employer obligations under German social security law, 
• manage HR or Payroll processes for German companies centrally from Switzerland, 
• use shared service centres for several countries, including Germany, or 
• operate international HR, Payroll or document management systems. 

In these cases, it is worth reviewing existing document and archiving processes. The introduction or Development of a digital personnel file can help to meet legal requirements whilst simultaneously improving data quality and efficiency.  

Three typical real-world scenarios 

1. Swiss group with a German subsidiary
If a Swiss company has aGerman subsidiary with employees, it should be checked whether the relevant payroll records there are already kept entirely electronically and whether these meet the legal and technical requirements. 

2. Centralised HR or Payroll administration in Switzerland
If the HRor Payroll processes of a German company are managed centrally fromSwitzerland, the processes, systems and responsibilities should be structured in such a way that German requirements can be met. 

3. Cross-border HR systems
If the same HR or document management systems are used across several countries, it should be checked whether the German company is able to maintain and provide the necessary records in accordance with the requirements applicable there. 

Conclusion

The German regulation is more than just a technical adjustment to remuneration records. It highlights how the requirements for modern HR and Payroll processes are changing. 

For companies with corresponding employer obligations in Germany, there is a clear need for action. They should check at an early stage whether relevant documents, responsibilities and systems are ready for 2027. 

In our view, however, it is not enough to focus solely on the documents that are directly required by law. Companies should therefore not merely ask themselves whether, and if so which, documents they will need to maintain electronically from 2027 onwards. The strategically more important question is: Are our HR, Payroll and digital agreement processes set up in such a way that we can efficiently implement regulatory changes in the future? 

Developments in Germany exemplify why a modern HR architecture is increasingly also a matter of governance. Those who structure processes, responsibilities, data and systems clearly today create better conditions for compliance. At the same time, manual effort is reduced and the HR organisation can grow more easily. 

Digitalisation therefore does not simply mean replacing paper with PDFs. It means designing HR processes in such a way that information flows securely, responsibilities are clear and new requirements can be implemented without the need for fundamental restructuring. 

In our view, this is precisely where the long-term value of a modern digital HR architecture lies. 

Sources

• Section 8 of the Regulation on the Calculation, Payment, Transfer, Settlement and Audit of the Total Social Insurance Contribution (Contribution Procedure Regulation – BVV) – Remuneration Records

• Section 9 of the BVV – Maintenance of remuneration records

• Section 9a of the BVV – Common Principles

• Section 28f of the Social Code, Book IV (SGB IV) – Obligation to keep records

• Section 28p of Book IV of the Social Code (SGB IV) – Tax audit

• German Pension Insurance – Remuneration records

• Joint Principles pursuant to Section 9a of the BVV for remuneration records pursuant to Section 8 of the BVV and for contribution statements pursuant to Section 9 of the BVV, dated 18 March 2022