In Germany, employees are enrolled in five main statutory social security funds, providing protection for illness, disability, retirement, unemployment, and work-related accidents. Each fund covers a specific area of social security, ensuring comprehensive protection.
Statutory Health Insurance (Krankenversicherung): Statutory health insurance in Germany covers medical treatment, hospital visits, surgeries, medications, and therapies, ensuring employees access necessary healthcare.
Coverage: Includes doctor’s visits, hospital stays, surgeries, rehabilitation, prescriptions, and preventative care like vaccinations and check-ups.
Contribution: Employees contribute a portion of their gross income, with the employer covering the other half.
Statutory Long-Term Care Insurance (Pflegeversicherung): Long-term care insurance supports individuals needing care due to illness, disability, or old age, covering costs for home care, assisted living, or nursing homes.
Coverage: Offers care services for those unable to care for themselves, including support for home care and residential care.
Contribution: Contributions are deducted from the employee’s salary, matched by the employer. Employees without children pay an additional contribution.
Statutory Pension Insurance (Rentenversicherung): Pension insurance ensures financial security in retirement by offering monthly pension payments based on income and years of contributions. It also covers disability and survivor’s pensions.
Coverage: Includes retirement pensions, disability pensions for those unable to work, and survivor’s pensions for family members.
Contribution: Both employees and employers contribute a total of 18.6% of the employee’s gross salary into the pension fund.
The five statutory social security funds in Germany protect employees against risks like illness, accidents, and retirement. Both employees and employers contribute to funding the system. These contributions provide access to healthcare, long-term care, pensions, and unemployment support, ensuring financial security in difficult times.
