Business
Germany — Business: Social Security
Germany's social insurance system (Sozialversicherung) has five branches, each jointly funded by employer and employee: statutory pension insurance (18.6%), health insurance (14.6% base + ~2.9% average Zusatzbeitrag), unemployment insurance (2.6%), and nursing care/long-term care insurance (2.6-4.2%, employer bears 1.8%). Overall, the employer's total share of social insurance contributions amounts to approximately 21% of the employee's gross wage. Contribution assessment ceilings (2026): €5,812.50/month for health/nursing care insurance, €8,450/month for pension/unemployment insurance — income above these levels isn't subject to further contribution.
Key facts
- Five branches of Sozialversicherung: pension (18.6%), health (14.6%+~2.9%), unemployment (2.6%), nursing care (2.6-4.2%), all jointly funded by employer/employee.
- Employer's total social insurance share: approximately 21% of gross wage.
- 2026 contribution ceilings: €5,812.50/month (health/nursing care), €8,450/month (pension/unemployment).
- Mandatory for nearly all employees; self-employed individuals have different, often optional, arrangements for some branches.
Costs
- Employer total social insurance contribution: ~21% of gross wage
Required documents
- Employee registration with statutory health insurance fund
- Social security number for the employee
Common mistakes
- Assuming self-employed individuals face the same mandatory social insurance structure as employees — self-employed arrangements differ significantly by branch.