Social security, health insurance, etc.
If you have an employment contract in Germany, you have to pay social security contributions. They will be deducted automatically from your salary.
Contributions to the pension fund (“Rentenversicherung”)
The public pension insurance scheme primarily intends to secure an income after retirement. The pension fund is also drawn on in some other cases, which hopefully will never become relevant for you.
The pension insurance differs from other components of the social security system in that the services and benefits are dependent on the accumulated amount of contributions paid.
The compulsory pension fund is financed by the contributions made in equal shares by both employees and employers.
Unemployment Insurance (“Arbeitslosenversicherung”)
The unemployment insurance is a compulsory insurance as well. It is paid in equal shares by both employees and employers. If your employment contract ends, you can claim unemployment benefits by registering with the local job centre (“Agentur für Arbeit”).
Health Insurance (“Krankenversicherung”)
In Germany, employees are obliged to have a health insurance. Up to a fixed gross salary per month you have to take out one of the public insurance schemes, which are also paid in equal shares by both employees and employers. Beyond that threshold, you can choose between a public and a private health insurance.
Long-term care Insurance (“Pflegeversicherung”)
The long-term care insurance is paid in equal shares by both employees and employers. Childless people have to pay an additional contribution of 0.25% of the gross salary.
For any questions, please contact us:
Phone:+49 (0)6221 – 533 – 280