Statutory social insurance
Persons in paid employment in Germany are always protected under the statutory social insurance scheme.
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The German social insurance system is a statutory insurance system that provides effective protection against life’s most serious risks and their consequences, such as illness, accidents, unemployment, old age and long-term care needs. It is intended to ensure a relatively stable standard of living for everyone and provide support in times of need. It also provides a pension when people reach the end of their working life.
The social insurance scheme is a mandatory form of insurance. Half of the contribution for the statutory social insurance scheme is always paid by the employer. The other half is paid by the employee and is automatically deducted from their salary or wages. There are some exceptions, for example: in certain cases, employees may pay slightly more than their
employers for their long-term care insurance; in return, employers pay the whole contribution for accident insurance. By paying these contributions, you build up your entitlement to benefits from the different areas of the statutory social insurance scheme.
Your social insurance contribution generally varies according to your income. However, there is an assessment ceiling for all areas except accident insurance. If your income is above this, the contributions do not increase anymore.