Insurances

Germans are subject to social insurance contributions. This is a legal system which protects employees. Social insurance cares for you your whole life and protects you from anything unexpected. It follows the principle of solidarity. Freelancers, marginally employed workers and soldiers do not have to pay social insurance contributions. 

Social insurance contributions are being paid partly by employee and employer. 

Health insurance is compulsory and protects you in the case of illness from risks that might arise from not being able to work, as well as from caring and curative treatment. For people with a high income or who are not subject to social insurance contributions there exist also private insurances. Students and trainees may still count as dependents and therefore be covered through their parents, provided that the insurance is valid in Germany. Since 2009 EU citizens may use the insurance from their mother country if it meets the legal minimum standard (so called EWR-Service Provider). 

Unemployment insurance gives job seekers an income. Until you start a new position your livelihood is warranted at least temporary and to some extent. How long and to what extent job seekers get unemployment benefits depends on each individual case. A prerequisite is that you paid in the insurance whilst working in a different position. The arrangements for people who have been unemployed for a long time are regulated by law. In general, dues are paid depending on your income. 

Pension insurance is a retirement arrangement for employees. It protects them from reduced earning capacity, in old age and death. Pension insurance follows the principle "pay-as-you-go", meaning younger generations pay the rent of old people. Contribution rate is 18.7% which is partly paid by the employee. The state and employers sometimes also support other retirement arrangements. 

Non-German employees may utilise pension payment from abroad. 

Nursing care insurance protects you should you become dependent on care. The insurance is compulsory. You benefit from care or financial help. Contribution rate lies between 2.55 and 2.8 %. 

Legal casualty insurance protects you in the event of a work accident, occupational diseases and the inability to practise one`s profession. Consequently, it is taken over by your employer.