German Social Security and Employees Benefits

German Social Security and Employees Benefits

Employees in Germany contribute to German social security to benefit from many services, including health care. The German social security system is funded by both employees and employers, as in other countries. Foreigners living in Germany pay for these contributions except with some exceptions.

German Social Security

Some issues covered by social security in Germany; health, medical treatment and long-term care, unemployment benefit and retirement benefit. For these safeguards, there is about 40% deduction from the employees’ salary. Employers cover about half of these outages. In addition, employers meet company insurance insurances that meet rehabilitation and care after a work-related illness or work accidents.

In Germany, social security cuts are directly taken from employees’ salaries. Contributions are made by both employees and employers. The total of social security contributions is 40% of your salary. These contributions cover items such as health insurance, nursing care, pension and unemployment insurance.

Social security transactions for employees are made by employers and the employee pays approximately 20% of the income for social security. Most freelancers are not necessarily insured by government insurance. New business openings are exempt from paying contributions for 3 years.

Persons with less than 50 days of work or less than 400 euros must not pay for the sovereignty tax but must have health insurance.

Employees in Germany generally contribute to the four basic social insurance schemes.

These are;

  • Unemployment insurance,
  • Health insurance,
  • Nursing care insurance
  • Pension insurance.

German Unemployment insurance,

In Germany, everyone who works in a paid job has to pay legal unemployment insurance. In the last five years, who has paid at least one year for the fund, has registered in the Bundesagentur für Arbeit employment office and actively looks for work and takes advantage of this fund.

German Health Care Insurance,

Anyone who works in Germany and pays a health insurance fund can benefit from a 12-week paid maternity leave. You can also get child benefit for children under 18 if you are a taxpayer.

Almost everyone living in Germany (employees, occupational hardships, unemployment benefits, university students, retirees and dependent family members) is covered by the statutory health insurance.

Issues covered by the health insurance in Germany; treatment, dental care, goggles, medicines and supplies, vaccinations, pregnancy during pregnancy and childbirth, injury or post-accident rehabilitation. The wages of the patients are paid by the employer for the first 6 weeks, while the state pays up to 78 weeks in the health insurance.

In Germany, a publicly funded health insurance system with a gross salary of less than 54900 euros can participate in the GVK. The system includes 120 different insurance companies and the most appropriate one has the right to choose.

German Pension Insurance.

In Germany, civil servants have their own pension systems. The self-employed are self-insured, but are allowed to participate in the GRV.

Countries with EU citizens and social security agreements with Germany may request or transfer back the pension contributions to the German system.

The pension received in Germany depends on your income and the number of years you are working. The maximum payout amount is 67% of your income during your working life. The pension fund will increase to 67 in 20 years.

In Germany, every employee, trainee, student, and many others are covered by a legal accident insurance covering accidents and accidents after medical treatment and rehabilitation. No contribution to this insurance is required.

For more information about German social security you can contact us from below comments box.

If you want to get more information about living, working, education and immigration to Germany, you can check below articles as well.

Germany Immigration Requirements

Cost of living in Germany 

Minimum Wage and Average Salaries in Germany

Germany Work Permit

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