Insurances in Germany

This section will introduce you to the most important types of insurances. As some insurances are mandatory (car = Kfz-Haftpflichtversicherung, health = Krankenversicherung, professional liability (for chambered professions) =  Vermögenshaftpflichtversicherung, etc.), the most are voluntary. The wording "social security (= soziale Sicherheit)" is not common in Germany; usually the insurance is expressly mentioned. In other words, when referring to old-age pensions Germans speak of "Rentenversicherung" or relating to precaution for old-age pensions "Rentenvorsorge".

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):                              19,9%
2. Arbeitslosenversicherung (unemployment insurance):                         6,5%
3. Krankenversicherung (health insurance):                                          15,00%
4. employee’s extra share (in order to reduce wage costs):                     0,9%
5. Pflegeversicherung (nursing care insurance):         
   true for persons under 23 or when older with kids on the tax card         1,7%
6. Pflegeversicherung (nursing care insurance):
   for everybody else                                                                            1,9%

Authors: AvE