Work

Social Security System

In Germany, all employees must contribute to the compulsory social security system. Entrepreneurs are not subject to join the system except for health insurance. Providers of statutory health insurance have special rates for voluntary insured people.
The compulsory social system includes the pension scheme, health insurance, and other services. These additional services include unemployment insurance, long-term care insurance, and accident insurance. Unemployment insurance covers an employee's basic needs in case of unemployment. Long-term care insurance provides financial support for those that require care and assistance from others. Accident insurance helps an employee regain 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 make additional retirement agreements because the social security payments do not cover all expenses throughout the years.
Basically, employees share 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.
Even though the insurance system is meant for everyone employed in Germany, many foreign residents prefer to be exempted from this set of rules and stay in the social security system in their home country.
For this reason, Germany has signed bilateral social security agreements defining who must join the system and who may not. Moreover, there is a mutual recognition of social security systems within the European Union and the European Economic Area.
Additional bilateral social security agreements with Germany have been signed by the following nations:

Flag	Count
	Australia
	Bosnia-Herzegovina
	Bulgaria
	Chile
	Israel
	Japan
	Canada
	Croatia
	Morocco
	Macedonia
	Republic of Korea
	Romania
	Serbia and Montenegro
	Tunisia
	Turkey
	USA

German health insurances have joined hands to set up a clearing agency for all international questions on health insurances. Although it mainly supports Germans going abroad, the agency provides some useful online information for foreigners in Germany.