GERMAN SOCIAL SYSTEM HEALTH INSURANCE

SOCIAL SECURITY

In 2013 we noticed an increase in the number of non-EU citizens interested in living and working in Germany compared to the previous year. The main reasons for this were the positive development of the German economy and the need for highly-qualified professionals in various industries.

When relocating to Germany about 86% of all private clients we met asked whether they should pay into the social security system and if so, how? The answer depends on whether they are employed or whether they are going to work freelance, since this will largely determine what legal steps need to be taken into consideration.

GERMAN HEALTH INSURANCE

If the annual gross salary is more than Euro 43,000.00 the employee can choose between any private health insurance company or join the government scheme.

GERMAN RETIREMENT INSURANCE

Up to a gross annual salary of Euro 63,600, the employee and the employer have to pay into the government pension insurance scheme.

GERMAN UNEMPLOYEMENT INSURANCE

Up to a gross annual salary of Euro 63,600, the employee and the employer have to pay into the government unemployment insurance scheme.