Social Security System in Germany

By | January 25, 2018

Social Security System in Germany

The social security system in Germany is called the principle of solidarity and provides the best protection for the tough times. The system ensures that every insurer contributes towards financing of the social security that is dependent on the financial ability of the individual.

There are five parts that make up the German social security system;

  1. Accident Insurance
  2. Pension Insurance
  3. Health Insurance
  4. Pension Insurance
  5. Long-term care Insurance

Social security system in Germany

How to get social security

The German law almost without exception views the employees in need of requiring some protection or insurance. The reason being that the employees depend on their potential to work in order to earn a livelihood. This means that the employees automatically get insured that come under the social security system.

Upon beginning a job, the all-compulsory insurance takes its effect immediately. The employers and employees cannot avoid the insurance by signing the agreement or making an arrangement in any circumstances at all.

However, for some exceptions like temporary jobs or part-time jobs the Health insurance cannot come into effect. So, those employees with some exceptions do not have to take care of the insurance cover themselves. Yet, they have to choose which health insurance fund they would like to get protection from.

The employer estimates the social security contributions, then deducts the employee’s contribution from the salary and finally pays the collected contributions. In fact, the employer also registers the employee’s chosen health insurance fund at the beginning of the employment.

Social security health insurance

Under GKV (national health system), around 85 percent of the German population enjoys the insurance benefits. The health insurance covers expenses relating to dental care, hospital stays, drugs, routine doctor visits, x-rays, eyeglasses and immunizations. The insurance also compensates individuals for the loss of income at the time of illness.

Those employed persons who earn over 4000 Euros per month have the option to stay under statutory insurance or opt for a private insurance. Yet, the employer with few restrictions need to pay close to half of the premiums of the private insurance plan. Regardless of the income, self-employed individuals under few circumstances can get insured under statutory insurance or choose a private insurance too.

German social security pension

The pension insurance for the elderly people ensures that the employees are able to maintain an appropriate standard of the living when they retire. Generally, from the age 65, payments are made. The maximum payout can amount to some 67 percent of the average net income during the insured’s working life.

Those Germans who work abroad and come back to their homeland are also entitled to receive the pension insurance as well.

Work in Germany for foreigners

The foreign students are authorized to work in Germany according to the immigration law. Yet, it is important that the study does not get neglected. The assessment of social insurance is essential for which the students have to be enrolled and registered properly.

During the semester, the foreign students can work in Germany for 20 hours at least. The exception can take place if they are working in the evening, night or only on the weekends. However, the semester break period is different. There is no time restriction to work for long.

Those who take up a job in Germany

for the first time need to have a social security card. This also applies to the numerous foreign students studying in Germany. It is mandatory for the first employer to apply for the social security card on behalf of the employee.

The mini-job application has to be submitted at the mini-job headquarters as well as for the employment with the social security. As a result, the employer receives the social security number and the employee or student receives the social security card through the email.

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