Labor Costs   

People employed in Germany have to contribute to four principal social insurance schemes. The contribution is generally paid half by the employer and half by the employee. This also includes trainees and members of the armed forces and civil service. The exact contributions are:           

1. Rentenversicherung (old-age pension insurance):                            19.5%
2. Arbeitslosenversicherung (unemployment insurance):                        3.3 %
3. Krankenversicherung (health insurance):                                         14.3%*
   

   * = (average)
4. employee’s extra share (in order to reduce wage costs):                      0.9%
5. Pflegeversicherung (nursing care insurance):                                     1.7%
   

last updated in January 2008.