Hire employees in 180+ countries

Hire international contractor

Find the best candidates for your team

Retain talents with the best benefits

Work visa & permit services

Explore all our add-ons

Our borderless team and our mission

Discover our partner benefits

Platform news and annoucements

Our offices around the world

How we keep your data secure

Shape your global hiring strategy

How we accelerate global hiring

Calculate employment cost

Social security
in Germany.

Start hiring in Germany

Social security in Germany – Overview

Germany’s social security program is considered developed, offering universal healthcare, a pension program, unemployment, and more. Both employees and employers much contribute to social security in Germany, with each contribution a percentage of the employee’s gross salary at each pay period. Read below for details about Germany’s social security program.

What does the social security system in Germany cover?

In Germany, social security covers things like pension, healthcare coverage, unemployment insurance, and so on. Accident insurance is also covered, however the sole burden to pay into this is by the employers.

What are the mandatory contributions for employees to social security in Germany?

Employee contributions in Germany can reach around 19% of the salary. And they are the same as the employer contributions

A typical breakdown of employee contributions is:

  • 9.3% for pension insurance
  • 1.2% for unemployment insurance
  • 7.3% for health insurance
  • 1.5% for long-term care insurance

What are the mandatory contributions for employers to social security in Germany?

Employer constitutions in Germany can reach around 19% of the employee’s salary.

A typical breakdown of employer contributions is:

  • 9.3% for pension insurance
  • 1.2% for unemployment insurance
  • 7.3% for health insurance
  • 1.5% for long-term care insurance

How do mandatory contributions compare to the surrounding countries?

Contributions in Germany about the average for Europe. Some surrounding countries are more, or less. For example, in France, the minimum mandatory contribution is 42% of the employee’s salary. Whereas in a European countries like Portugal, 11% in the norm.

Hire borderless talent with Horizons

Hiring in Germany, Made Easy

Your business can easily hire employees in Germany without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

In Germany, social security contributions reach around 19% of the salary.

In Germany, social security will cover things such as pension, healthcare coverage, unemployment insurance and long-term care insurance.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

logo-1

What to expect when you connect with Horizons

Recruit, hire and pay remote
teams without a local entity

We respect your data, and process it according to our Privacy Policy