If you are a skilled professional returning to Germany after a longer stay abroad, your prospects of getting a foot back on the ladder are excellent. If you have been seconded to a post abroad, your company will likely refer you to a relocation agency that will provide you with all the necessary information. And take care of the most important work. However, if you are planning your return by yourself, there are a few points to consider.
How does the German social security system work
All employees earning more than €450 per month are covered by the German social security system and must contribute to the system depending on their income. With this extensive system, Germany sees to it that all German citizens, including expats, can live and work comfortably even if they’re sick, unemployed, disabled or retired. The contributions must be split equally between the employer and the employee, except for the contributions to the health insurance. The employer is liable for the full payment of the contributions to the social security system. In addition, the employer must contribute to the statutory accident, maternity, insolvency and severely handicapped insurances. This, however, prevents the employee from claiming damages from the employer due to workplace accidents, unless these were caused by the employer intentionally.
Social security
If your job in Germany is subject to social security contributions, your employer is required to register you with the statutory social security providers (unemployment, pension, health, disability care and accident insurance). Your employer’s HR department should do this automatically as soon as you start your job, provided that you and your family have registered with a German health insurance company.
Check your social security contributions
Your first pay slip will state the amount you and your employer are paying in social security contributions. This makes it easy for you to check that your employer has registered you.
Health and disability care insurance
In 2009, Germany made it mandatory for every person living in the country to take up health insurance, either under the statutory system or from a private provider. So do not forget to register yourself and your family with a healthcare provider as soon as you arrive in Germany. Whether you are eligible for private or statutory healthcare or can choose between the two will depend on the type of insurance you had before leaving Germany. On the length of your stay abroad, and on your job in Germany. If you are returning from an EU Member State, a country within the EEA or Switzerland, you should ask your insurance provider to issue Form E 104 to you. This form will serve as proof of insurance for the time you had insurance coverage under the foreign country’s healthcare system. This will help ensure that you can benefit from full coverage as soon as you come back.
Health insurance when emigrating
Your initial point of contact should be the healthcare provider you had before leaving Germany. Ask them about the insurance plans you can choose from when you come back to Germany.
Pension insurance
You may be entitled to transfer the pension entitlements you have obtained abroad to Germany. However, this only applies to Switzerland and countries in the EU and the EEA if you spent at least a year working in those countries. You will need to furnish form PD U1 as proof of insurance(Long-term care insurance.
Similar to health insurance, long-term care insurance, Pflegeversicherung, covers the basic costs of home and residential care, should an employee ever be in need of nursing or household assistance. The employee and employer both pay an equivalent contribution of 1,525%.
Be aware of this
Anyone with statutory health insurance is automatically covered for long-term care insurance. If you have private health insurance, you may need to apply for care insurance. The contribution is higher for employees without children, 1,775%.
Accident insurance, insolvency charge, and maternity leave
For a couple of insurances, there is only a contribution from the employer side, not for employees. Depending on the risk characteristics of the job, employers can pay from as little as 0,5% of gross (for risk-free office jobs). But the higher the risk of the job (construction/factory workers), the contributions can be significantly higher. The benefit of this insurance is that the costs of medical treatment and rehabilitation after a work-related accident are covered. The employer also pays an insolvency charge of 0,6%. Depending on whether the employee is covered by statutory health insurance. Or private health insurance, the employer pays 0,5% for maternity leave (Mutterschaftsgeld). This contribution, applicable to all employees (regardless of gender), ensures that all pregnant mothers can enjoy 4 months of paid maternity leave.
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Getting Germany’s passport
Things to know before immigrating to Germany
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