Key takeaways
- You pay social security contributions from your gross income. The Social Security contributions are for pension, unemployment, health, and long-term care insurance.
- The amount of social security contributions depends on your income.
- The employer pays half of the social security contributions.
- There is a cap on the income on which you pay social security. You don’t pay social security above that income limit. The income limit is called the contribution assessment ceiling.
- The German government increased the Social Security contribution assessment ceiling in 2024. Thus, you’ll get less net income in 2024.
This is how you do it
- You can check how much social security you paid in your last month’s payslip.
- You can choose between public and private health insurance if you earn more than the compulsory health insurance limit. The compulsory health insurance limit is 66,900 € as of 2024.
Table of Contents
What are social security contributions in Germany?
Germany has one of the best social security systems in the world. Germany offers its citizens various social security benefits like pensions, health coverage, unemployment benefits, etc.
To support the social security system, every earner in Germany contributes a part of their income to social security. These contributions are called social security contributions.
There are four main social security contributions you make in Germany.
- Statutory pension insurance (Gesetzliche Rentenversicherung in German)
- Statutory health insurance (Gesetzliche Krankenversicherung in German)
- Unemployment insurance (Arbeitslosenversicherung in German)
- Nursing care insurance (Pflegeversicherung in German)
What percentage of gross salary do you pay as social security contributions in Germany?
A percentage of your gross salary is deducted as social security contributions in Germany. You can also check the monthly salary slip to determine how much you pay as social security contributions.
The table below shows what percentage of your gross salary you contribute to different social securities in Germany.
| Social security type | Total Contribution Rate | Employer’s share | Employee’s share |
|---|---|---|---|
| Statutory pension insurance | 18.6% | 9.3% | 9.3% |
| Unemployment insurance | 2.6% | 1.3% | 1.3% |
| Statutory health insurance | 14.6% | 7.3% + 0.8% | 7.3% + 0.8% |
| Long-term care insurance (no children) | 4.0% | 1.7% | 2.3% |
| Long-term care insurance (with 1 child) | 3.4% | 1.7% | 1.7% |
| Long-term care insurance (with 2 children) | 3.15% | 1.7% | 1.45% |
| Long-term care insurance (with 3 children) | 2.9% | 1.7% | 1.2% |
| Long-term care insurance (with 4 children) | 2.65% | 1.7% | 0.95% |
| Long-term care insurance (with 5 or more children) | 2.4% | 1.7% | 0.7% |
Source: 1, 2 (The social security contributions rate is as of 2024)
Example
Suppose you are single with no kids and earn 3500 € gross per month. The table below summarizes how much you’ll contribute to social security.
| Social Security Type | Monthly Contribution (€) | Employer Contribution (€) | Employee Contribution (€) |
|---|---|---|---|
| Pension | 651.00 (3500 € * 9.3%) | 325.50 | 325.50 |
| Unemployment | 182.00 (3500 € * 2.6%) | 91.00 | 91.00 |
| Health Insurance | 511.00 (3500 € * 14.6%) | 255.50 | 255.50 |
| Long-Term Care Insurance | 140.00 (3500 € * 4%) | 59.50 (3500 € * 1.7%) | 80.5 (3500 € * 2.3%) |
| Total social security contributions paid | 1484.00 | 731.5 | 752.5 |
How high is the social security contribution assessment ceiling in Germany?
You pay social security contributions up to a certain income limit. This limit is called the Social Security Contribution assessment limit.
You don’t pay social security contributions on the salary above the contribution assessment ceiling. The contribution assessment ceiling is different for each type of insurance.
The German federal government adjusts the contribution assessment ceiling each year. The Social Security contribution assessment ceiling increases if the average income increases.
The table below shows the social security contribution assessment limit in 2023 and 2024.
| Social security type | 2023 (in €) Month (year) | 2024 (in €) Month (year) | Percentage Increase (%) |
|---|---|---|---|
| Pension (West) | 7300 (87,600) | 7550 (90,600) | 3.42 |
| Pension (East) | 7100 (85,200) | 7450 (89,400) | 4.93 |
| Health & Long-Term Care | 4987.5 (59,850) | 5175 (62,100) | 3.76 |
| Unemployment (West) | 7300 (87,600) | 7550 (90,600) | 3.42 |
| Unemployment (East) | 7100 (85,200) | 7450 (89,400) | 4.93 |
Do you pay social security contributions on special payments?
Yes, you pay social security contributions on one-off or special payments. The one-off payments are added to your total income to calculate the social security contributions.
But you don’t pay any social security on the income above the assessment ceiling ( Section 23a Paragraph 3 SGB IV ).
Impact of rise in social security contributions
The increase in the contribution assessment ceiling reduces your net income, especially if you are a high earner. So, your net income in 2024 will be less than in 2023 if your gross income is the same.
Suppose you earned and are earning 8000 € gross per month in 2023 and 2024. And you live in West Germany.
The table below shows the impact on your net income in 2024.
| Social Security Type | Monthly Contribution (€) 2023 | Monthly Contribution (€) 2024 | Increase in monthly contribution (€) |
|---|---|---|---|
| Pension | 678.9 (7300 € * 9.3%) | 702.15 (7550 € * 9.3%) | 23.25 |
| Unemployment | 189.8 (7300 € * 2.6%) | 196.3 (7550 € * 2.6%) | 6.5 |
| Health Insurance | 728 (4987.5 € * 14.6%) | 756.45 (5175 € * 14.6%) | 28.45 |
| Long-Term Care Insurance | 199.5 (4987.5 € * 4%) | 207 (5175 € * 4%) | 7.5 |
| 65.7 (788.4 per annum) |
As you can see, you’ll get 65.7 € less every month in 2024. It amounts to 788.4 € of lost income in 2024.
What is the compulsory health insurance income limit (Versicherungspflichtgrenze)?
Everyone living in Germany must have health insurance. People who earn less than a set income limit are automatically insured with compulsory statutory health insurance.
Those who earn more than the income limit can choose between public and private health insurance.
Suppose you had private health insurance, but your salary is no longer above the income limit. In this case, you can return to public health insurance.
The compulsory public health insurance limit (Versicherungspflichtgrenze) is 69,300 € per annum gross as of 2024. It was 66,600 € per annum gross in 2023.
The compulsory insurance limit is lower for people who took private health insurance before 2003. The income limit is 62,100 € per annum gross as of 2024.
