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What is long-term care insurance (Pflegeversicherung/PV)?
Long-term care insurance is a form of compulsory social insurance that serves to cover part of the long-term care risk of all employees, the unemployed and retirees. This is necessary in order to better secure the care risk of the population as a whole.
How are long-term care insurance contributions calculated?
All employees in Germany aged 23 or older have to pay an additional surcharge on their contribution. The number of children they have determines how much extra they have to pay. The proportion paid by the employer is 1.7% in all federal states except Saxony. In the federal state of Saxony, employees have to pay a higher proportion of the contribution. This is because Saxony has an additional public holiday: "Buß- und Bettag" (Day of Repentance and Prayer). For the full contribution rate, the employer's share of the contribution is always 1.2% in Saxony.
| Number of children | Contribution rates for all federal states except Saxony | Contribution rates for Saxony |
| Members without children | = 4.00% (employee share: 2.3% + employer share 1.7%) | = 4.1% (employee share: 2.9% + employer share 1.2 %) |
| Members with one child | = 3.40% (for life) (employee share: 1.7% + employer share 1.7%) | = 3.40% (employee share: 2.2% + employer share 1.2%) |
| Members with two children | = 3.15% (employee share: 1.45% + employer share 1.7%) | = 3.15% (employee share: 1.95% + employer share 1.2%) |
| Members with three children | = 2.90% (employee share: 1.2% + employer share 1.7%) | = 2.90% (employee share: 1.7% + employer share 1.2%) |
| Members with four children | = 2.65% (employee share: 0.95% + employer share 1.7%) | = 2.65% (employee share: 1.45% + employer share 1.2%) |
| Members with five or more children | = 2.40% (employee share: 0.7% + employer share 1.7%) | = 2.40% (employee share: 1.2% + employer share 1.2%) |
These additional contributions apply as long as the children are under 25 years old. Once a child turns 24, the parents lose the benefit for that child.
Example
Alex Peters, who is employed in Brandenburg, has two children (Mia, 19 and Fin, 24). His monthly contribution to long-term care insurance amounts to a total of 3.15% of his gross salary. Of this, 1.7% is paid by his employer and 1.45% by Alex.
When Fin turns 25, Alex's additional contribution rises to a total of 3.40% of his gross salary. Of this, 1.7% is paid by his employer and 1.7% by Alex. The contributions will not increase any further when Mia turns 25, with the contribution rate remaining at 3.4%.
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Helpful hint
We recommend saving information regarding all of an employee's children in Personio on the Information tab, under Children, and uploading their birth certificates to the documents section.
For further information, visit the website of the Federal Ministry of Health.