# Social security contributions

When you are employed, social security contributions and wage tax are financed from your budget and paid to the relevant authorities by the cooperative. You are responsible for both the **employer’s and the employee’s share**.

You can freely decide how much income per month to allocate to an employment arrangement based on the [employment categories](https://guide.smartde.coop/books/deine-anstellung/page/anstellungskategorien).

The **social security contributions** are made up as follows:

<table border="1" id="bkmrk-public-health-insura"><colgroup><col></col><col></col></colgroup><tbody><tr><td>Public health insurance</td><td>14.6% plus additional contribution</td></tr><tr><td>Long-term care insurance</td><td>3.6 - 4.2%, with/ without child</td></tr><tr><td>Pension insurance</td><td>18.6%</td></tr><tr><td>Unemployment insurance</td><td>2.6%</td></tr><tr><td>Additional employer costs</td><td>contributions variable between 0.5% and 3.5%</td></tr><tr><td>Income tax </td><td>progressive, depending on income</td></tr></tbody></table>

<p class="callout info">The basic tax-free allowance for income tax (*Grundfreibetrag*) changes every year and depends on your personal circumstances. Use the [income tax calculator](https://www.bmf-steuerrechner.de/bl/bl2024/eingabeformbl2024.xhtml) on the website of the Federal Ministry of Finance to calculate accurately how much income tax you may have to pay.</p>