Social insurance: The five pillars in Germany

In short: Statutory social insurance consists of health, long-term care, pension, unemployment and accident insurance and covers major life risks.

In more detail: Employees pay part of their income into joint funds. Under the solidarity principle the costs are borne by everyone, and in an emergency the insurance pays, regardless of how much you paid in yourself. Apprentices, too, are generally subject to insurance.

In Depth

The five branches

• Health insurance (GKV): doctor visits, hospital, medicines, sick pay. Contribution about half paid by the employer.
• Long-term care insurance: benefits for people in need of care.
• Pension insurance: old-age pension, reduced-earning-capacity pension, rehab. Own contributions create entitlements.
• Unemployment insurance: unemployment benefit I, support for further training and placement.
• Accident insurance: accidents at work and on the way to work, occupational diseases, also for pupils, students and apprentices. The employer alone pays the contributions.

Who pays how much

Contributions are percentages of gross pay up to the contribution assessment ceiling (above which no further contributions arise). Employees and employers share health, care, pension and unemployment insurance roughly half and half. The rates change regularly; the health insurer’s additional contribution differs by fund.

Statutory or private

Whoever is in dependent employment is statutorily insured up to an income limit (compulsory insurance threshold). Family members without income of their own are often co-insured free of charge in statutory health insurance. The self-employed and civil servants have different rules. For small founders health insurance is an important topic.

Tips

• Keep the proof of insurance (social insurance card) and the pension insurance number safe.
• When training starts you choose a health insurer and tell the employer its name.
• Occasionally check your insurance record at the German Pension Insurance.
• Additional private provision (disability, retirement) complements the statutory benefits but does not replace them.

See also: Health insurance for young founders, Reading a payslip, Liability and important insurances