Social Security: contribution rates and income thresholds

Social Security: contribution rates and income thresholds

In today’s part of our online seminar payroll, we deal with the contribution rates and ceilings for statutory social security.

2. Fundamentals of Payroll

Experienced readers the webinar wages and salaries will have noticed cuts or simplifications in the previous contributions. This is intentional, because the focus of this paper is to lie in practical payslips which can be understood by anyone interested. Features that have not yet been addressed, are then discussed from time to time in this webinar wages and salaries accordingly. So missing a reader or a reader for. Example the term “factor method” in the tax class combination IV / IV or the distinction in a general Lohnsteuertabelle A and a special Lohnsteuertabelle B, which is applied to employees who are not or no longer pension insurance as officials or employees who receive pension from the statutory pension scheme, we have these situations intentionally at first hidden in order not to overburden the theoretical part of the webinar wages and salaries.

2.2. Statutory social insurance

Today, based on five pillars social, the subject large sections of dutifully enough with their roots to the profound social and economic changes in the second half of the 19th century in Europe and Germany.Increasing industrialization and thus the growth of the working class with the known negative social excesses prompted the government to take measures to protect workers and their families. Quite disinterestedly the first laws came about not in the reign Bismarck, but they have been proven ultimately until today.

Here is an overview of the implementation dates of the branches of social security:

1883 Statutory Health Insurance
1884 Accident Insurance
1889 disability or workers’ pension insurance
1911 employees pension insurance
1927 Unemployment
1995 Social care

Contributions to social insurance are determined in their amount and the tax bases by law and depend on the income of the insured. Determined are also by the insured are entitled. The respective bases of social security law can be found in the existing part of 12 books Sozialgesetzbuch SGB. determine Article 120 of the Basic Law and § 213 SGB VI that the federal government is obliged funded with tax revenue grants to provide social support in an emergency from support if they can no longer meet from contributions or reserves its obligation to perform.

2.2.1. Social security contribution rates 2015 – (abridged overview)

insurance branch values employer’s contribution employee share
Health insurance General contribution rate 14.60% 7.30% 7.30% plus possibly. An individual, income-related additional contribution of the respective health insurance, drafted by the employer
Reduced Entry rate lt. § 44 para. 1 sentence 2 SGB V 14.00% (sickness benefit is not to be confused with continued pay in case of illness) 7.00% 7.00%
care insurance Total 2.35% 1.175% 1.175% plus. 0.25% for insured persons over 23 years without nachge-instructed parents self-Community. Another special status Saxony
pension Insurance 18.70% 9.35% 9.35%
unemployment insurance 3.00% 1.50% 1.50%
accident insurance Depending on the trade association responsible Depending on hazard classes of operation, contributions only by AG no contributions
Insolvency benefit contributions 0.15% Posts only by AG
Allocations U1 and U2 (expenses maternity) Lt. Statutes of health insurance Posts only by AG


2.2.2. Income Thresholds

For the amount of social security, a tax base applies. The basis is the social insurance gross pay. Up to this amount, the deductions are determined as a percentage. Parts of pay which are higher than the tax base, are non-contributory.

Income thresholds for social security 2015 – (abridged overview)

Branch of social Jurisdiction including West. West Berlin Jurisdiction East incl. East Berlin
Hospital and nursing-insurance monthly 4.1250,00 € € 4,120.00
Pension and unemployment insurance monthly € 6,050.00 € 5,200.00


the above figures should be multiplied by 12 for the calculation of the annual values.

2.2.3. Annual income limit

The annual income limit determines the compulsory insurance limit. Up to this limit is compulsory insurance for workers in the public health insurance. As the income thresholds each year redefined by the legislator the compulsory insurance limit. For 2015, the compulsory insurance limit is € 54,900.00.

Now what does this annual income limit for an employee? Who is with his annual gross income above this amount may change to a private health insurance. For the compulsory insurance limit has to be exceeded in the previous year. Basically, however, a worker has the right to continue to remain a member in his previous public health insurance, he acquires the status of a voluntarily insured. He has also continued claim to the employer’s share of health and nursing, but only up to the amount the employer would have to pay a maximum.

An example: The income threshold in the KV / PV is € 4,125.00. The AG’s share in health insurance amounts to 7.30%. This results in a maximum employer subsidy for employees who are members of private health insurance are, in the amount of € 301.13.

2.2.4. Principle of half-pitch

As is apparent from the table to the contribution rate of social insurance, applies in principle the half division principle after employers and employees share the contributions to social security generally. The following exceptions, unless given in the table should be exemplified already at this point:

  • When trainees below the low income limit in the amount of € 325.00, the employer assumes all social security contributions
  • Workers who have reached the age of 65, pay yourself no contributions to unemployment insurance, only the employer will pay its employer’s contribution
  • Employees receiving full pension age, pay even no pension contributions, only the employer will pay its employer’s contribution