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 . 

 The social security contributions are made up as follows: 

 

 

 

 Public health insurance 

 14.6% plus additional contribution 

 

 

 Long-term care insurance 

 3.6 - 4.2%, with/ without child 

 

 

 Pension insurance 

 18.6% 

 

 

 Unemployment insurance 

 2.6% 

 

 

 Additional employer costs 

 contributions variable between 0.5% and 3.5% 

 

 

 Income tax  

 progressive, depending on income 

 

 

 

 The basic tax-free allowance for income tax ( Grundfreibetrag ) changes every year and depends on your personal circumstances. Use the income tax calculator on the website of the Federal Ministry of Finance to calculate accurately how much income tax you may have to pay.