German Social Security
Our tax guide for freelance contractors working in Germany
Contributions have to be made to old-age insurance (19.9%) and unemployment insurance (3.3%) on salary up to EUR 5’300 per month (employer and employee pay half each), nursing care insurance on salary up to EUR 3’600 (1.95% for employer and employee and an extra 0.25% paid by a childless employee). The employer also has to contribute to an accident insurance for his employees and for maternity indemnity insurance. Small companies with less than 30 employees have to pay for sickness indemnity insurance as well.
Health insurance is obligatory for employees with a salary of less than EUR 48’150 per year. It is calculated on a maximum of EUR 3’600 per month. The rate depends on the health insurer and is on average 14%, with the employer and employee paying half each. Employees who want to opt out of the State health insurance have to prove that their earnings are not only above the current threshold but have been above certain thresholds in the last three calendar years.