Health Insurance / Social Security

Health Insurance / Social Security System

In contrast to some other industrialized countries, the core social security system in Germany is financed collectively by means of a process of redistribution. But what does this mean? It means that the current costs for pensioners, sick people, unemployed persons, etc. are paid directly from the contributions of current employees and employers. The German core social security system knows the following mandatory social security insurances:

Pension insurance
Unemployment insurance
Nursing care insurance
Health insurance
Work Accident Insurance (only paid by the employer)

Generally speaking, social security contributions for all of the above-mentioned social security insurances are roughly shared equally between the employer and the employee (so almost 50:50).

A common social security carrier (in German: "Sozialversicherungsträger") exists for all social security insurances, except for health insurance. Health insurance is a "specific" case as there are different health insurance funds /health insurance companies existing in Germany. Further below you can find an overview of some selected German health insurances! Please check them out as you need to decide for a German health insurance ;)

Employees in Germany receive a net salary from which taxes and social security contributions have already been deducted. The necessary deductions that are required by law are made by the employer during the monthly payroll process. All social security contributions are withheld by the employer and transferred to the employee's health insurance fund/health insurance company. Afterward, the employee's health insurance fund is responsible for distributing all other social security contributions to the responsible social security carrier.

Facts about the German "Pension Insurance"

Pension insurance is mandatory for employees in Germany.
After the employee has retired, the pension insurance provides a pension payment to the former employee. However, in addition to the German state pension system, a private pension plan is highly recommended in order to maintain a given standard of living during old age.
In 2024, employees have to pay 9.30% of their monthly gross salary for pension insurance.
Social Security Carrier: Deutsche Rentenversicherung

Facts about the German "Unemployment Insurance"

Unemployment insurance is mandatory for employees in Germany.
Responsible for the prevention of unemployment.
Supports with the job search in case of joblessness.
In charge of paying unemployment benefits (Arbeitslosengeld) in case of joblessness.
In 2024, employees have to pay 1.30% of their monthly gross salary for unemployment insurance.
Social Security Carrier: Bundesagentur für Arbeit (Federal Employment Agency)

Facts about the German "Nursing Care Insurance"

Nursing care insurance is mandatory for employees in Germany.
No matter if young or old, anyone can become in need of long-term nursing care. When that happens, care and nursing assistance have to be performed on a sustained basis, sometimes for decades. That costs a lot of money. An independent branch of social insurance was developed to cover the risk of requiring long-term nursing care.
In 2025, employees have to pay the following percentage of their monthly gross salary for nursing care insurance:
- Employees without kids: 2.4%
- Employees with 1 kid (younger than 25 years): 1.8%
- Employees with 2 kids (younger than 25 years): 1.55%
- Employees with 3 kids (younger than 25 years): 1.3%
- Employees with 4 kids (younger than 25 years): 1.o5%
- Employees with 5 kids (younger than 25 years): 0.8%
Social Security Carrier: Corresponding health insurance of the employee

Facts about the German "Health Insurance"

Health insurance is mandatory for employees in Germany (Please see further information on how to sign up as an employee further below).
There are different health insurance companies in Germany (see more details further below).
The employee can decide on his/her own which health insurance company s/he wants to sign up for. That means that the employee needs to proactively decide on German health insurance and needs to register himself/herself with them on his/her own. This initial registration cannot be done by the employer as it is the employee's turn to decide on the German health insurance (company) s/he wants to be insured with.
The standard benefits of all German health insurance companies are the same.
Health insurance covers standard visits to the doctor, dentist, or hospital.
In 2024, employees have to pay between 7,3% and 10% (dependent on the health insurance company) of their monthly gross salary for health insurance.
After the employee has chosen his/her German health insurance, the chosen German health Insurance informs "Deutsche Rentenversicherung" to issue the personal German social security number. Therefore, the employee will receive his/her German social security number only after signing up for German health insurance. This number is very important for the monthly payroll accounting and remains the same throughout the employee's life.

As mentioned, employees can decide on their own for any German health insurance company. We suggest enrolling with one of the biggest health insurance companies in Germany, which you can register online for. Just check their websites for more details. Most German health insurance companies also have English registration forms available. Below you can find a small selection of the most popular health insurances in Germany. Nevertheless, please be informed that much more German health insurances exist and that you are free to choose any of them. We, as your future employer, will not preset which health insurance to choose :)

Special "Welcome Service" of Techniker Krankenkasse

Please note that "Techniker Krankenkasse" is offering a dedicated "Welcome Service" for all foreigners starting with Eurowings Digital. The "Welcome Service" provides all communication and letters in English language. If you want to become a member of "Techniker Krankenkasse" and you want to have all communication done in English, please follow the below-mentioned steps.

Important: Even though it is also possible to sign up for "Techniker Krankenkasse" in English language using their website, it does not automatically mean that you will be included in their "Welcome Service". The "Welcome Service" only gets "activated" when following this process is used:

Fill out and sign your "Application for membership" form. If you do not want to use the PDF file, you can also use this online link. Using the online link might be easier! In case you do not have a German address yet, please use the office address of Eurowings Digital for the registration with TK (Address: Eurowings Digital GmbH, Waldstraße 249, 51147 Cologne)
In case family members (like children and spouse) should be covered free of extra charge via the "Family Insurance", please fill out this additional form. The "Family Insurance" is only applicable as long as the spouse and/or children do not work in Germany. Moreover, please note that "Family Insurance" is also called "Non-contributory Dependants' Insurance". More information and details about this insurance can be found here.
Send the above-mentioned document(s) by email to Michael Jakobs (Michael.Jakobs@tk.de) from Techniker Krankenkasse. He will take care of the rest :)
You will receive your membership certificate (that might be needed for your Visa process as well)

More information about "Techniker Krankenkasse" can be found here.