The German social security system

Can I choose the statutory insurance companies?

Yes and no. You cannot choose who handles your unemployment and pension insurance. However, you can freely choose your statutory health insurance provider. By doing so, you also automatically choose the nursing care insurance scheme.

We are happy to do this for you. If you are ill, we will cover the costs of your medical treatment and medication. Even if you are in good health, we will help make sure it stays that way. Simply complete our membership application online. We’ll take care of everything else.

Pension insurance

If you are employed by a company, you are also a member of the pension insurance scheme. This ensures that you are covered in old age and will receive a pension. Pension insurance also supports you if you can no longer work or can only work very little due to illness or if your spouse has died. As a contribution to this, you pay a certain percentage to the pension insurance. This is currently 18,6%. You pay half of this, i.e. 9,3%. The other half is paid by your employer.

Through your contributions to pension insurance, you earn entitlements to a retirement pension. In addition, disability pensions are also possible. Rehabilitation services are available to you to maintain your ability to work. 

Every year you will receive a forecast about the expected retirement pension. 

The German pension insurance company will create your social security number and send it to you by letter. If you have statutory health insurance, your health insurance company will issue your social security number. 

If you take out private insurance, your social security number will be issued after you start working.

Long-term care insurance

Long-term care insurance is always carried out through your health insurance company. It is compulsory insurance. It is taken out together with your health insurance contract. Long-term care insurance supports you if you need care and assistance for example in old age. You will need to apply for this assistance through us if you need it later, as we are both your health insurance scheme and your long-term care insurance provider.

The contribution rate for your long-term care insurance is 3,6% and is deducted from your gross monthly salary. Both you and your employer contribute to this amount. Each pays 1,8%. If you are over 23 years of age and have no children, you will have to pay an additional 0,6%. The contribution rate is reduced for members with more than one child.

Unemployment insurance

Employees are generally compulsorily insured in the German unemployment insurance.

If you are employed, you will automatically receive unemployment insurance. If you should become unemployed at some point, you will receive financial support from the employment agency under certain conditions. They will also help you find a new job. The contribution for this is 2,6% of your salary. You and your employer both contribute to this amount.

Accident insurance 

Statutory accident insurance protects you in the event of an accident at work. 

Insurance coverage also applies to trips to your workplace and on your immediate way home. You are also insured against accidents while working from home.

The company you work for covers the costs of this accident insurance for you. 

In the event of accidents during your free time, you are covered by your health insurance.

Health insurance

Health insurance is also compulsory. If you are ill, your health insurer will cover the costs of your medical treatment and medication. It also covers the costs of health care, rehabilitation and costs during pregnancy and childbirth. If you are unable to work for a long period of time due to illness, you will receive sickness benefit.

Video: Health insurance in Germany

In Germany you can chose between private and statutory health insurance. As a rule, it is very hard to return to statutory health insurance once you decided for private health insurance. For this reason – and because of the benefits – more than 90% of all citizens in Germany are insured at a statutory insurance.  DAK-Gesundheit is the oldest and one of the largest statutory health insurance companies in Germany. 

Statutory health insurance generally provides all medically necessary and scientifically recognized services. The rules for this are determined by the German state. This ensures that all health services are available to every citizen, regardless of individual income.

In statutory health insurance, your contributions are calculated based on your income. The company you work for bears for half of the contributions. The contribution rate for health insurance in Germany consists of the general contribution rate of 14,6% and the additional contribution rate. This varies from one insurance company to another.

If your family members are not employed, they will usually receive health insurance without paying any contributions.

In private health insurance, contributions are calculated based on age and health status. Contributions must also be paid for insured family members.

In private health insurance, the service packages must be taken out individually. The more service packages are taken out, the higher the monthly contribution increases.