Residents and Non-residents working within Germany are required by law to pay social security contributions on their gross salary and all earnings in Germany.
Social Security contributions are deducted automatically, when employed through EAFS Consulting GmbH and paid directly to the Social Security office employees in German are subject to both employer and employee social security deductions.
Social Security Rates
- Health Insurance – 15.5% - Employer pays 7.3% and Employee pays 8.2%
- Unemployment Insurance (3.0%) - Employer and Employee pay 1.5% each
- Nursing care Insurance – Employer and Employee pay 2.05%, an extra 0.25% paid by any childless employee
- Pension Insurance (18.9%) - Employer and Employee pay 50% each
The German Social Security Contributions are made to the following funds:
- Health Insurance (Krankenversicherung)
- Unemployment Insurance (Arbeitslosenversicherung)
- Nursing care Insurance (Pflegeversicherung)
- Pension Insurance (Rentenversicherung)
Employees whose income exceeds EUR 45’900 per year are entitled to elect whether to be insured by public or private health insurance. Therefore, you can opt out of the state contribution and register for private medical insurance, depending on your circumstances.