SOCIAL INSURANCE
The statutory health insurance
Health insurance is very important and mandatory in Germany. It is used to cover the costs of doctor visits as well as medicines and therapy measures. The contribution for those with statutory health insurance is around 14.6 percent. However, the deduction from the salary is only 7.3 percent (i.e. half), since your employer pays the other half.
The statutory pension insurance
You pay into the pension insurance in order to be entitled to a pension in old age. During the professional career, the employee pays 9.3 percent of the gross salary. The employer pays the same amount again at the same time. This rate of 18.6 percent is uniform in Germany.
The statutory long-term care insurance
The long-term care insurance steps in when the health insurance no longer pays, for example because an employee has become in need of care. This insurance is uniform at 2.55 percent, which is also shared equally between employees and companies.
The statutory accident insurance:
It bears the costs for medical treatment and reintegration into working life after an accident at work or in the event of occupational diseases.
The statutory unemployment insurance
Unemployment insurance is also part of the social security contributions. It pays out an income to the unemployed for a certain period of time if certain conditions are met. Among other things, the unemployed must prove that they are actively looking for a job again. In addition, you must have paid into the insurance for at least one year within the last two years. A total of 3 percent is paid into the insurance and here, too, only half (1.5 percent) falls back on the employee. Civil servants, soldiers and mini-jobbers are exempt from this insurance
The well-developed social security system in Germany offers, among other things, basic protection if you are affected by illness or unemployment, for example.
If you work in Germany and are subject to social security contributions, you must be a member of certain insurance companies and automatically pay contributions. These are as follows:
1. Health insurance:
Health insurance is a form of social insurance that covers medical treatment, medication, and other health services. It ensures that insured individuals receive appropriate medical care in the event of illness. Contributions are paid by the insured and, in some countries, by employers.
2. Pension insurance:
Pension insurance is a form of social insurance that offers financial security to individuals of retirement age. By making regular contributions during their working lives, insured individuals accumulate entitlements to a pension. Pension insurance ensures that people can maintain their lifestyle in retirement.
3. Unemployment insurance:
Unemployment insurance provides financial support to individuals who have become unemployed through no fault of their own and offers assistance in finding new employment. It helps mitigate income losses and assists the unemployed in reintegrating into the labor market. Contributions are jointly borne by employees and employers.
4. Accident insurance:
Accident insurance shields employees from the financial repercussions of workplace accidents and occupational diseases It offers benefits like medical treatment, rehabilitation and pension payments. Typically, contributions to accident insurance are solely covered by the employer.
5. Nursing insurance:
Long-term care insurance provides financial assistance and benefits for individuals who require support in their daily lives due to care needs. It covers the expenses for nursing services and assists individuals in need of care and their families in dealing with the challenges of caregiving. Contributions to long-term care insurance are shared by both employees and employers.
The social security number
Once you have a job in Germany, you will receive a social security card containing a social security number. It is important to share this number with your employer and to keep your social security card in a secure place. If you misplace your card, you must request a replacement from the German Pension Insurance.