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Social security
in Germany.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES German / English

PAYROLL TAX 20.66%

PAYROLL CYCLE Monthly

TIME TO HIRE 48 hours

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.

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.

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