Social Securities in Germany

SOCIAL SECURITIES FOR EMPLOYEES IN GERMANY
Germany has a high level of income tax, which is justified by the fact that the government gives you a lot of social benefits. As a German employee you need to contribute 20% of your income to social security fund.
The total amount of social contribution per month is 40.45% of gross income, 19.425% is paid by employees and 21.025% by employers.
Germany has the second-highest social security contribution for a single person in the EU.

HEALTH INSURANCE
All the employees in Germany are enrolled in a public health insurance fund by the employers. Every employee in Germany are obliged to have a health insurance.
Ninety percent of people in Germany have public health insurance, which include vision, dental, pre and antenatal and pediatric care. People prefer public insurance because unemployed spouses and children under 25 are co-insured at no additional cost. Private health insurance is only available for the employee earning than a threshold (64,350 EUR annually for 2021).
Both public and private health insurance covers most basic services by the doctor and treatments, but if you want some special unnecessary medical care or you want a private hospital room, you will have to take an additional private healthcare plan. In both cases, the contributions are shared equally by the employer and the employee.

 

 

DISABILITY INSURANCE
People can donate in states disability fund, which helps people with disabilities continue in the workforce. Donation provides them with the income when they are no longer able to function. People with natural disabilities, war veterans and victim of violent crimes are all covered by this disability fund.

RETIREMENT INSURANCE
In Germany retirement compensation starts from the age of 65 for the people born before 1947 and 67 for those born after 1964. All the employees and also some self-employed are compulsorily insured for pension by law.
All the employee will get the pension after reaching the official German pensionable age even if they move to some other country legally, if they have worked and paid contribution in Germany for more than 60 months (5 years). It is usually divided equally between an employee and employer.

 

UNEMPLOYMENT INSURANCE
Every employee should be protected by unemployment insurance in case someone loses the job. You will be contributing in unemployment fund, while you are employed. Employees can use the benefit of this insurance after working and paying at least 12 months in the last two years. The amount you get and how long you will get this benefit depends on your age and your employment time.

 

ACCIDENT AND SICK PAY INSURANCE
This insurance protects you when fall sick or if you are injured in an accident while working, which is paid in full amount by the employer.
The payments cover all the cost of the treatment and recovery, invalidity pensions and also funeral costs in the event of death.