Calculated Variables in Social Insurance

This article gives you an overview of the calculated variables and contribution rates in social insurance (as of 2019).

 

Annual Earning Threshold

There is a mandatory insurance threshold for health insurance. Employees whose regular salary is higher than this threshold are not obligated to take out statutory health insurance. They can decide whether they want to voluntarily take out insurance with a statutory health insurer or be privately insured. You can find further information on these two options here

The annual earning threshold is currently €60,750.

 

Contribution Assessment Ceilings

There are upper limits on how much of your employees' salary is taken into account when calculating social insurance contributions. These are known as contribution assessment ceilings and thus cover contributions to health, long-term care, pension, and unemployment insurance.

There is one contribution assessment ceiling for

  • health and long-term care insurance (a single limit) and
  • another for pension and unemployment insurance, in each case different in the former West German and East German federal states.
2019

Pension & Unemployment Insurance


Health & Long-Term Care Insurance
Validity Former West German federal states/West Berlin Former East German federal states/East Berlin All of Germany
Year €80,400 €73,800 €54,450
Month €6,700 €6,150 €4,537.50

Any salary exceeding this limit is paid to the employee without contributions being deducted. 

 

Calculating Contributions 

The contributions paid for health, long-term care, pension, and unemployment insurance make up the total social insurance contribution. The table below shows how social insurance contributions are calculated. The contributions are calculated based on employee salary, taking into account the contribution assessment ceilings for each class of insurance.

 

 Class of Insurance  Employer Contribution  Employee Contribution
Health Insurance 7.3% + X/2  7.3% + X/2
Long-Term Care Insurance

1.525%
(Saxony: 1.025%)

1.525%
(Saxony: 2.025%)

 + 0.25% surcharge for employees without children

Pension Insurance 9.30% 9.30%
Unemployment Insurance 1.25% 1.25%
 Insolvency Benefit Contribution 0.06%  
Assessment 1  For companies ≤ 30 employees;
adjusted depending on health insurer (contribution from employer only) 
Assessment 2  Adjusted depending on health insurer (contribution from employer only)

*X = additional contribution set by the respective health insurer

 

In general, the employee and employer each pay half of the total social insurance contribution. There are also the following special cases:

Mini-Job
Anyone employed in this form of marginal employment is exempt from contributions to all classes of social insurance. Flat-rate contributions are paid by the employer only. Pension insurance is the exception: However, here mini-jobbers have the option of asking to be exempted from mandatory pension insurance contributions.

The mini-job earnings limit is currently €450 per month.

Sliding Scale/Transition Zone:
For employees whose salary falls within the range of the sliding scale, special rules apply for the calculation of social insurance contributions. Here, the employee only has to pay a reduced employee contribution. The goal of this transition zone is to ensure that the contributions, employees have to pay once they start earning above 450 euros (mini-job limit) increase gradually rather than suddenly. Rather than using the actual salary to calculate contributions, a notional salary determined by Factor F is used instead. This factor is redefined each calendar year based on the insurance contribution rate.

The sliding scale goes from €450.01 to €850. From July 2019, it will go from €450.01 to €1,300.

 

Due Dates for Contribution Statements

In order to observe the health insurers' deadline for contribution statements, it is important that you enter all changes to the current month into Personio by the cutoff date at the latest and complete the payroll. Any changes made after this date will automatically be assigned to the next month. 

Contribution Month 2019 Health Insurers' Deadline for Contribution Statements (Cutoff Date)

January

25.01.2019

February

22.02.2019

March

25.03.2019

April

24.04.2019

May

24.05.2019

June

24.06.2019

July

25.07.2019

August

26.08.2019

September

24.09.2019

October

24.10.2019

November

25.11.2019

December

19.12.2019

To meet the deadline, contribution statements must be submitted by no later than 12.00 am (midnight) the day before.

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