Legal Working Conditions

Social Security System

In Germany, all employees must contribute to the compulsory social security system. Entrepreneurs, however, are only required to have a health insurance. Providers of statutory health insurance have special rates for such ''voluntarily'' insured people.
The compulsory social system includes

• the pension scheme,
• health insurance, 
• and other services.

These additional services include 

• the unemployment insurance which covers an employee's basic needs in case of unemployment.
• long-term nursing care insurance, that provides financial support for those that require care and assistance from others.
• and accident insurance which helps an employee retain his earning ability after a work-related accident.

It is strongly recommended to sign a voluntary occupational disability insurance, since the compulsory insurance does not cover this area. This type of insurance is only offered by private companies. Furthermore, employees should set up additional retirement funds because the social security payments do not cover all expenses throughout the years.

Basically, employees split the insurance premium with their employers. Employers subtract the employees' part from their wages. Employees earning more than 48.150 € for three consecutive years are exempted from the compulsory health insurance and may sign private agreements.