Key takeaways
- The employer contribution to private health insurance is 8.55% of your gross salary (as of 2025). However, the maximum employer subsidy is capped at 471€ (8.55% of 5512.5€).
- The employer also contributes to long-term nursing care insurance. The amount is 1.8% of your gross monthly salary (as of 2025), and it is capped at 99€ (1.8% of 5512.5).
- Employees are eligible for employer subsidy if their private health insurance fulfills the requirements per §257 para. 2a SGB V.
- The employer contribution to private health insurance premiums is tax-free.
This is how you do it
- Get the employer certificate (Arbeitgebersbescheinigung) from your private health insurer. You must submit this certificate to the employer to get the employer subsidy. The certificate is the proof that you have valid private health insurance.
- Taking high deductibles to reduce insurance costs is not beneficial for employees. It’s because the employer doesn’t contribute to the deductible.
- You can use our “Health Insurance Finder” tool to check which health insurance (Public or Private) makes sense and when.
- Consult a fee-based advisor or an insurance broker before choosing between private or public health insurance.
- In our comparison and test, we found Haellesche and Signal Iduna’s private health insurance plans to be the best.
Table of contents
Who is entitled to the employer subsidy on private health insurance premiums?
Every employee in Germany is eligible for employer subsidy as long as their private health insurance fulfills the requirements per §257 para. 2a SGB V.
In other words, you must have a fully-fledged private health insurance policy to get a subsidy from the employer. Employers don’t contribute to your supplementary health insurance policies.
How much does the employer pay for your private health insurance in Germany?
The employer’s contributions to the private health insurance premium depend on three factors.
- Your salary
- Contribution assessment limit in public health insurance set by the German government
- Your private health insurance premium
This is how it is calculated.
Employer contribution = 10.35% of income considered or half of the insurance premium -> whichever is lower (as of 2025)
where “income considered” is
- your gross salary if you earn less than the contribution assessment limit
- contribution assessment limit if you earn more than the contribution assessment limit
The contribution assessment limit is 5,512.5 € per month (as of 2025). It was 5,175€ per month (as of 2024). It refers to your gross monthly salary.
How did we calculate the number 10.35%?
It comprises three things.
- Half of the basic contribution, i.e., 7.3% (14.6% / 2).
- Half of the average additional contribution, i.e., 1.25% (2.5% / 2) as of 2025. It was 0.85% (1.7% / 2) in 2024.
- Half of the nursing-care insurance contribution, i.e., 1.8% (3.6% / 2) as of 2025. It was 1.7% (3.4% / 2) in 2024.
So, the total employer contribution to the German health insurance system is 7.3 + 1.25 + 1.8 = 10.35% of income considered. And the maximum employer contribution is capped to 471€ (8.55% of 5512.5€) plus 99€ (1.8% of 5512.5) as of 2025.
Example
The table below shows sample calculations of your and your employer’s contributions to the private health insurance premium.
| Monthly gross salary | 6,000 € | 4,000 € |
|---|---|---|
| Monthly insurance premium | 900 € | 900 € |
| 50% of the monthly insurance premium | 450 € (900 / 2) | 450 € (900 / 2) |
| Employer contribution for private health insurance (14.6% + 2.5%) / 2 | 471€ (8.55% of 5512.5€) | 342 € (8,55 % of 4000 €) |
| Employer contribution for nursing care insurance (3.6% / 2) | 99€ (1.8% of 5512.5) | 72 € (1,80 % of 4000 €) |
| Maximum employer share (10.35% of your gross monthly salary or contribution assessment limit, whichever is lower) | 10.35 % of 5,512.5 € (As your gross salary is higher than the contribution assessment limit) | 10.35 % of 4000 € (As your gross salary is lower than the contribution assessment limit) |
| Maximum employer share | 570.5€ (as of 2025) | 414 € |
| Actual employer share | 450€ (as half of the insurance premium is lower than the maximum contribution) | 414 € (as the maximum employer share is less than half of the insurance premium) |
| Your share | 450 € (900 € – 450 €) | 486 € (900 € – 414 €) |
The employer’s contribution to the health insurance premiums is tax-free.
Do German employers pay for employees’ long-term care insurance?
Yes, employers must contribute half of the cost of long-term nursing care insurance. The statutory nursing care insurance is 3.6% of your gross monthly salary (as of 2025).
Thus, the employer must contribute 1.8% (3.6% / 2) of your gross monthly salary to long-term care insurance.
NOTE: The employer contribution is capped at the maximum contribution assessment limit, i.e., 5,512.5 € per month (as of 2025). It was 5,175€ per month (as of 2024)
This means that the maximum employer contribution to nursing care insurance is 99€ (1.8% of 5512.5). If you earn less than 5,512.5 € per month (as of 2025), the employer contribution will also be less.
What is the maximum employer contribution to private health insurance in Germany?
The employer contribution to private insurance is capped to the contribution assessment limit. And the contribution assessment limit is 5,512.5 € per month (as of 2025).
Thus, the maximum employee subsidy you can get is:
| Employer contribution 2025 (monthly) | Employer contribution 2024 (monthly) | Employer contribution 2023 (monthly) | |
|---|---|---|---|
| Private health insurance | 471€ (8.55% of 5512.5€) | 421.76 € (8.15 % of 5,175) | 403.99 € (8.15 % of 4,987.50) |
| Long-term nursing care insurance | 99€ (1.8% of 5512.5) | 87.98 € (1.7 % of 5,175) | 84.79 € (1.7 % of 4,987.50) |
| Total | 570.5€ (as of 2025) | 509.74 € | 488.78 € |
You can use our “Health Insurance Finder” tool to check which health insurance (Public or Private) makes sense and when. We recommend getting advice from a fee-based advisor or health insurance broker before deciding.
Insurance brokers and advisors are liable for their advice. This means that if the insurance plan they recommended doesn’t fulfill your wishes, they are liable to pay the damages.
Insurance brokers offer free advice. The insurance company pays them upon the successful conclusion of the contract.
An insurance broker can also help you file a claim with the provider. The broker we recommend has been offering services to expats for more than a decade.
Employer contribution to family insurance
Publicly insured people can insure their non-working family members for free in family insurance. But that’s not the case in private health insurance.
You must get a separate health insurance plan (public or private) for each family member.
However, family members of privately insured people receive employer subsidies in the following situation.
- Your family member would have been insured for free in the public health system (Section 257 Paragraph 2a SGB V).
- You haven’t fully used the maximum employer subsidy. For example, your private insurance premium is less, you are on parental leave, etc.
- Your family member is also part of the private health insurance system.
Example: In the table above, you received 450 € in employer subsidy if you earned a gross of 6000 €. However, the maximum employer subsidy you can get is around 570.5 € (as of 2025). Thus, in this case, your family member can get a maximum subsidy of 120.5 € (570.5 – 450) from your employer.
Employer contribution to private health insurance for low-income individuals
Employer contribution to the private health insurance scheme depends on your monthly gross income. Thus, the employer subsidy decreases if you earn less than the contribution assessment limit.
For example, you earn 4,000 € gross per month. Your contributions to private health insurance is 900 € per month.
In this case, your employer doesn’t pay half the insurance premium (450 €) or the maximum subsidy (570.5 €). The employer will pay 414 € (10.35% of 4000 €) only.
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4 things employees must know to get maximum employer subsidy for private health insurance
You must consider the following to maximize the employer’s subsidy for private health insurance.
Employer certificate (Arbeitgeberbescheinigung) from your health insurance provider
You must provide proof to your employer that you have German private health insurance. As proof, you can show the employer certificate (Arbeitgeberbescheinigung in German) you received from your health insurer.
The employer certificate mentions the following.
- You have a health insurance contract with a private health insurance company.
- You are eligible for the employer subsidy.
- Your monthly and annual contributions to the health insurance fund.
Deductible
Deductible is the amount you pay on your own. And the insurer covers the rest.
Suppose you opt for a deductible when signing a private health insurance policy. Your employer will not contribute to the deductible.
And if your employer contributes to the deductible, the tax office considers it a monetary benefit. Hence, you are liable to pay tax on it.
Thus, having a high deductible to reduce private health insurance costs is not beneficial for employees. There are other ways to reduce private insurance costs in Germany, such as switching to a cheaper health insurance tariff.
Private health insurance premium refunds
Many private health insurance companies offer premium refunds if you don’t claim any health insurance benefits in a certain period. The best part is that a premium refund doesn’t affect your employer’s contributions.
Thus, a high premium refund can help you save even more on a private health insurance policy.
NOTE: You should never skip necessary health checkups for a premium refund.
Times when you don’t receive employer subsidy
There are times when you don’t receive an employer subsidy. For example, you are on parental leave, receive daily sick pay, etc.
During these times, you must pay the full private health insurance premium yourself. However, you should check if your family members are eligible for a subsidy from your employer.
How do you find the best private health insurance in Germany?
Before you get private health insurance, you should do the following.
- Understand the pros and cons of private health insurance.
- Compare private and public health insurance to make an informed decision.
- Consult a fee-based advisor or an insurance broker for personalized advice.
- Know about the essential services private health insurance should cover.
After your research, you discovered private insurance is the best for you. Then, get in touch with an insurance broker or fee based advisor.
You can contact an insurance broker we recommend for free here.
Book a free call with a health insurance expert
- German health insurance is a complicated product. There are several factors that must be considered before deciding which health insurance is best for you. An expert can guide you and help you pick the best option for you.
- An Insurance broker is liable for their advice. This means if the policy they recommended doesn’t offer the coverage you requested, they are liable to pay the damages incurred in the future.
FAQ
When does the employer not pay private health insurance subsidies?
In the following situations, you don’t get employer subsidies for private health insurance.
- You are receiving sick pay.
- You are receiving parental or maternity benefits.
- You are on parental leave.
Is there an employee subsidy for privately insured part-time employees?
Yes, part-time employees with private health insurance also receive employer subsidy. But the subsidy is capped to the contribution assessment limit, i.e., 5,512.5 € per month (as of 2025).
The maximum monthly employer contribution to a private health insurance plan is 570.5€ (as of 2025).
Is employer contribution to the health insurance companies tax-free?
Yes, the employer’s contribution to private health insurance is tax-free.
More topics
References
- https://www.allianz.de/gesundheit/private-krankenversicherung/arbeitgeberzuschuss/
- https://www.privat-patienten.de/verbraucher/arbeitgeberzuschuss-private-krankenversicherung/
- https://www.handelsblatt.com/vergleich/pkv-arbeitgeberzuschuss/
- https://www.gesetze-im-internet.de/sgb_5/__257.html
- https://www.finanztip.de/pkv/arbeitgeberzuschuss-pkv/
