Employee contribution

In the German public health insurance system, your premium is calculated as a percentage of your salary. In the private insurance system, premiums are contractually agreed – and rise rather more slowly than in the public system.

Premiums in the public system

Public insurance premiums are a complex calculation. Let’s break it down:

  • All public health insurance providers charge a basic premium of 14.6% of your gross income, plus an average surcharge of 1.1%.
  • Premiums in the public insurance system are capped by the premium assessment ceiling (Beitragsbemessungsgrenze) of €58,050 per year (2021). This figure also determines the maximum employer contribution.
  • Employees and their employers share health insurance premiums 50/50 for salaries up to the premium assessment ceiling, with each contributing 7.3% of the employee’s gross salary.
  • The government adjusts the ceilings and thresholds every year. Public premiums are rising steadily – and at a faster rate, on average, than private premiums.

In the public system, everyone has access to the same treatments and services whether they earn €10,000 or €100,000. The more you earn, the more you pay – but your benefits will stay exactly the same.

Premiums in the private system

Premiums in the private system depend on the policy selected. As in the public system, premiums do rise over time due to inflation, medical advances, and the need to cover cost increases caused by demographic change. However, private premiums have risen by only 2.3% per year since 2010, compared with 3.8% in the public system.

Employers contribute 50% to private insurance premiums, up to the maximum they would pay for publicly insured employees – a figure capped by the premium assessment ceiling at around €368 per month for health insurance.

How do public insurance changes affect privately insured people?

When the premium assessment ceiling rises – as it does every year – the maximum premium for publicly insured people rises. This means that employers’ contributions also rise. If you are privately insured and have a salary around the assessment ceiling, this means that the proportion of your premium covered by your employer will increase over time. Bonus!

FAQ

How can I cancel my current insurance? How is the process?

We can help you write your cancellation letter for your current insurer and send it to you by email. You simply need to add your insurance number and signature and then send it to your insurer. We are unfortunately not allowed to contact your current insurer directly. 

Am I eligible for the Expat Tariff/ PKV tariff? Am I an expat in your definition?

If you are eligible for private health insurance and you are in Germany on a visa or a limited permit, we can offer you the Expat Tariff up to five years

How is the payment working? Different than public insurance?

The payment is different than in the public system. With private health insurance you pay the full tariff to us at the beginning of the month. If you are employed your employer will contribute their part to your health insurance through your salary.  

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