Germany wage tax calculator and analysis
Here we analyse how the german tax and social security works for every individual working in Germany.
Pension insurance (Rentenversicherung)
The contribution as of 2019 is 18.6 % of the gross salary (gross = total salary before tax). It is shared equally between the employee and the employer.
Self-employed people are not legally obliged to contribute to the state pension fund. However, if they wish they have to pay the full amount entirely by themselves.
This benefit can be obtained only after retirement. It is approximately 70% of the average net income earned during your working tenure. More details can be found here.
Unemployment Insurance (Arbeitslosenversicherung)
It is 2.5% of the gross salary and equally shared between the employee and the employer.
This benefit can only be availed after 12 months of contribution in the last 2 years before registering as unemployed. Unemployed person receives 60% of the average salary of the last 12 months. Person with children receive 67% instead.
The labour office pays maximum of 24 months at most but it also depends on the amount you have contributed to the insurance. The unemployment insurance also covers your health insurance, nursing care insurance and pension insurance.
More details can be found here.
Health Insurance (Krankenversicherung)
This amounts to 14.6% of your gross salary upto a and is equally shared between the employee and employer. In addition, the health insurers charge around 0.9% of gross salary depending on the health insurance company. The health insurance amount is also capped by an upper limit at a maximum monthly income of 4,538 €. That implies that beyond this salary, you only pay 14.6% of 4,538 monthly which is also equally shared with your employer.
This insurance is compulsory if your gross yearly salary is less than 60,750 €. Beyond that you are eligible to have your own private health insurance.
The minimum period of membership with any insurance company is 18 months and after that one can change their insurer with a notice period of 2 months.
The insurance covers hospital care and patient care with registered doctors and also basic dental care.
Nursing care Insurance (Pflegeversicherung)
It is 3.55% of the gross salary and equally shared between the employee and employer. For employees with children, it gets reduced to 3.05%. It is also capped by maximum monthly income of 4,538 €.
This insurance covers the cost of your nursing care. It depends on the degree of disability and whether you are receiving care at home or at nursing home.