Social insurance contributions are levied from taxable gross wages, usually with an equal split between employees and employers. For the public pension scheme and unemployment insurance, there is an upper earnings limit of about 200% of average earnings of all insured individuals. For health insurance and long-term care, the limit is about 150 %, with the additional option for those with higher earnings to switch from public to private insurance. Contribution rates for pensions, unemployment insurance and long-term care are uniform across all the insured and are usually defined, starting from January 1st, for an entire year; health insurance contributions vary across providers and can be adjusted during the course of the year (the figure displays average rates).
DICE > Social Policy
Timo Hener
Social Policy and Labour Markets
Phone: +49(0)89/9224-1418 Fax: +49(0)89/985369
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