Germany has an efficient social security system which covers those who are insured against unemployment, illness, long-term health issues, occupational accidents and old age. In Germany, insurance regulations are set by the state. The benefits are paid (according to the regulations) by the so-called "Sozialversicherungsträgern" or social insurance providers, i.e. the health insurance companies, the trade associations, the Employment Office ("Arbeitsamt") and the German Pension Insurance ("Rentenversicherung").
Anyone who is working as an employee ("Arbeitnehmer") and earns more than €520 per month, have to make social security contributions in Germany. If you earn less (i.e. have a "Mini-job"), you are exempt from social security contributions. Those who are self-employed can voluntarily make contributions and acquire coverage. You can find out more in our chapters "Mini-job", "Starting up a Registered Business ("Gewerbe")" and "Starting up as Self-Employed ("Freiberufler")".
Please note: Everyone in Germany must be covered by health insurance, whether their job entails social insurance contributions or otherwise. You can read more in our chapter "Health insurance".
The German social security system consists of five pillars:
- Health insurance: Health insurance covers the costs of illnesses and pregnancies. You can find out more in our chapter "Health insurance".
- Nursing care insurance: Nursing care insurance covers the costs when nursing care is needed. You can find out more in our chapter "Nursing Care System".
- Accident insurance: Accident insurance covers the costs in case of a work-related accident or occupational disease. You can learn more in our chapter “Labour Rights”.
- Unemployment insurance: Unemployment insurance secures your livelihood if you lose your job.
- Pension insurance: Pension insurance pays your living expenses when you are no longer able to work due to your age or illness. You can find out more in our chapter "Retiring in Germany".
You are automatically covered by pension, accident, nursing and unemployment insurance, so you have no choice there. With health insurance, however, you can choose from a variety of companies. You can find out more in our chapter "Health insurance".
You and your employer each pay half of your total contribution to health insurance, long-term care insurance, pension insurance and unemployment insurance. Your employer makes accident insurance contributions on your behalf. The amount of your contributions depends on your income. Each social security provider receives a certain percentage of your gross income- and the rate is adjusted regularly. You can learn more about your current social insurance contributions on ihre-vorsorge.de.
Please note: you do not have to worry about making social insurance contributions. Your employer deducts the designated percentage from your gross wages and transfers the money together with the employer's share directly to the social security institutions in charge.
When you start a job entailing social security contributions for the first time in Germany, you will receive a so-called "Social Security Card"(„Sozialversicherungsausweis“). Your name and your social security number appear on this ID card. Keep in mind that your social security number remains valid for life. When you start a new job, you must give your employer your social security number.
If you have lost your Social Security Card, you can request a new one from the German Pension Insurance. You can do so online at eservice-drv.de.
If you find a job which entails social security contributions, your employer will register you for social security. To do so, he/she will ask you about your social security number, which you can find on your social security card. Don't forget to keep the card in a safe place. If you do not have a social security number yet, you will be sent one after an employer registers you.
Retiring in Germany
People who stop working because of their age are called retirees or “Rentner*innen.” When people are older, they no longer have to go to work; instead, they receive a monthly pension. These individuals are called "pensioners." The current retirement age in Germany is 67.
Many are worried that they will not have enough money as they go into retirement. Poverty among pensioners is, in fact, a growing problem in Germany, in particular, for those who did not earn much during their working years. It is, therefore, all the more essential to deal with the issue of pension early on and before reaching retirement age. Here, we explain how the statutory pension system works in Germany and what other pension options there are.
Health Insurance
Health insurance is obligatory in Germany. If you wish to apply for a residence permit, you must be a member of a health insurance fund. Your health insurance provider, in principle, covers the costs of doctors' visits, hospitalisations, and (often partly) medications. In some cases, the health insurance scheme may take over the full expenses of your medicines.
If your asylum procedure is ongoing or have a "Duldung" or another temporary residence document, you can find the information you need in the chapter "Health Care for Refugees". There, you can also read about the health-related options you can benefit from, in case you do not have any papers.
Supplementary Insurances
In addition to the five compulsory social insurance schemes (medical, long-term care, pension, accident and unemployment insurance), there are other types of insurance one can apply for in Germany. These are optional, even though the word "compulsory" ("Pflicht") may sometimes appear in their titles, e.g. in the "liability insurance" ("Haftpflichtversicherung"). Most of these optional insurances protect you against financial risks. Depending on the life situation you are in, some of them may be useful.
Moving out
Moving in or out of a rented flat involves many steps and chores. Here, you can learn what you need to consider and which steps are essential to ensure that everything runs smoothly.
You can read more about the German insurance system on Make It In Germany's website.
The German Pension Insurance has published a detailed info-booklet about the German insurance system (in German).