In Germany, social security contributions are deducted from your salary at a fixed percentage rate, ensuring that you are covered by various social security benefits such as health insurance, pension insurance, unemployment benefits, and more. These contributions are shared between you and your employer, with each party contributing a specific portion based on the overall contribution rate. Here’s a breakdown of the costs and how they are shared:

Statutory Health Insurance (Krankenversicherung)
In Germany, statutory health insurance has a total contribution rate of 15.5% of your gross income. This covers medical care, hospital visits, medications, and preventive treatments. The employee contributes 8.2%, while the employer covers 7.3%. Contributions are automatically deducted from your salary by your employer, who sends the total payment to the health insurance provider.

Statutory Long-Term Care Insurance (Pflegeversicherung)
Long-term care insurance provides financial support for those requiring care due to old age, illness, or disability. The contribution rate is 3.05% of your income, with both the employee and employer each contributing 1.525%. If you’re childless, an additional 0.25% will be added to your share. These contributions help cover costs for home care, nursing home services, and other long-term care needs.

Statutory Pension, Unemployment, and Accident Insurance
Pension insurance is set at 18.6% of your income, equally split between employee and employer at 9.3% each, ensuring retirement benefits. Unemployment insurance, contributing 2.4% (1.2% each for employee and employer), provides financial support in case of job loss. Accident insurance, entirely covered by the employer, supports workers in case of workplace accidents or occupational diseases. Your employer manages all contributions and transfers them to the relevant funds, with deductions visible on your payslip.

Social security contributions in Germany are essential for ensuring that employees are financially protected in cases of illness, retirement, unemployment, and more. Both employees and employers share the responsibility for these contributions, with each fund offering specific benefits to workers. The employer manages the payments to the relevant funds, ensuring that employees receive the benefits they are entitled to under the system.