German Social Insurance is a legal insurance system, playing a principal role in Germany’s overall Social Security. Founded on the unity of the community of the insured, it delivers applicable financial defence against the main life dangers and their significances. This includes illness, unemployment, old age, industrial accidents and the requirement for long-term care.
The German Social Security system has been able to adapt to changing times, successfully matching conditions and regulations set by the EU. German social security is the core element of the German social system, based on principles that form the essential agenda in relation to what the German people require from their social security system.
Pension Insurance : German Social Security 2015
Pension Insurance is rated at 18.7% up to an income ceiling at €72,600 per annum. For new federal states this sits at €62,400. A contribution from both the employee and the employer sits at 9.35% each.
Unemployment Insurance : German Social Security 2015
Unemployment Insurance is 3% up to the income ceiling of €72,600 per annum (or €62,400 in the new federal states). A 1.5% contribution is borne by both the employee and the employer.
Health Insurance : German Social Security 2015
Health Insurance fluctuates between 14.6% and 15.8% up to an income ceiling of €49,500 per year. A 7.3% contribution is borne by the employer with the amount outstanding (between 7.3% and 8.5%, depending on the health insurance provider) by the employee.
Long Term Care Insurance : German Social Security 2015
Long Term Care Insurance is 2.35% or 2.6% for childless individuals per annum. The contribution is split with 1.175% for the employer and 1.175% for the employee. The Work Accident Scheme depends on the sector the individual is working in and the accident risk; the employer undertakes these contributions.
An individual person can apply for private healthcare and long-term care insurance should certain conditions be met.
Individuals who are self employed generally don’t have to pay mandatory social security contributions.