What is it and how does it work?
Introduction
The social security system in Germany is one of the key frameworks that protect employees against risks such as illness, unemployment and old age. It is regulated by the state and covers all employees who earn more than 538 euros per month (after the 2024 update). The system provides several benefits through health insurance funds, pension insurance and other responsible institutions.
Components of the social security system in Germany
The German social security system is based on four main pillars that protect employees against a wide range of risks:
Health insurance (Krankenversicherung):
Covers the costs of medical treatment and healthcare services, including pregnancy and ongoing treatment.
Pension insurance (Rentenversicherung):
Ensures a regular income after retirement or in cases of incapacity to work.
Unemployment insurance (Arbeitslosenversicherung):
Provides temporary income for people who unexpectedly lose their jobs.
Long-term care insurance (Pflegeversicherung):
Offers financial support for individuals who need long-term care due to old age or disability.
Who benefits from the social security system?
Employees who earn more than 538 euros per month are automatically covered by the social security system.
Workers in Minijobs who earn less than 538 euros are exempt from most branches of social security, but they must still have separate health insurance coverage.
Self-employed persons (Selbständige) may opt into certain branches of the social security system on a voluntary basis, for example to secure coverage for retirement and health risks.
How are social security contributions paid?
Contributions are generally shared between the employee and the employer. In insurance branches such as health insurance, pension insurance and long-term care insurance, each party usually pays roughly half of the total contribution.
For accident insurance, the employer bears the full cost alone.
Contributions are calculated on the basis of the employee’s monthly income. The employer transfers the contributions directly to the relevant social insurance institutions on behalf of the employee.
Note
Employees do not need to manage the payment of contributions themselves, as the employer is responsible for transferring both the employee’s and the employer’s share directly to the appropriate authorities.
Can I choose my social insurance provider?
In health insurance (Krankenversicherung), you can choose your statutory health insurance fund from among the many providers available in Germany.
For other types of social insurance such as pension insurance, unemployment insurance and long-term care insurance, the responsible provider is determined automatically and cannot usually be changed.
What is the social insurance card?
When you start your first job in Germany that is subject to social security contributions, you will receive a social insurance card (Sozialversicherungsausweis). This card contains your social insurance number (Sozialversicherungsnummer). This number remains with you throughout your working life and is used whenever you change jobs.
What should you do if you lose the card?
If you lose your social insurance card, you can request a new one from Deutsche Rentenversicherung, either online or by post.
Conclusion
The social security system in Germany provides comprehensive protection for individuals against a wide range of risks such as illness, unemployment and retirement. The increase of the Minijob income threshold to 538 euros in 2024 is an important step towards improving the situation of workers in low-income jobs.
The editorial team of this website aims to provide accurate information based on thorough research and consultation of multiple sources. However, errors may occur or some information may not be fully confirmed. Therefore, the information contained in these articles should be regarded as an initial reference only, and readers are advised to contact the competent authorities for definitive and binding information.
