Which insurance contributions are paid by the employer? A comprehensive guide for employees
17 May 2025
9
Minutes
Katrin Straub
CEO at nextsure
Did you know that your employer covers a significant portion of your social security contributions and can also offer additional coverage? Many employees are not aware of the full range of insurance benefits to which they are entitled or that are available to them. This article highlights which insurance contributions are covered by the employer and how you can benefit from them.
The topic in brief and concise terms
Employers pay significant contributions to statutory social insurance schemes (health, long-term care, pension, unemployment insurance) in addition to salaries, usually covering half of the total contribution.
Contributions to statutory accident insurance are fully covered by the employer and protect employees in the event of work and commuting accidents as well as occupational diseases.
Many employers offer voluntary additional benefits such as occupational pensions (often with employer contributions) and company health insurance, which can significantly improve employee security.
Mandatory insurance: The foundation of your protection provided by the employer
Employers in Germany are legally obliged to contribute to social insurance for their employees. These contributions are typically shared equally between employer and employee. Social insurance contributions make up the largest part of ancillary wage costs. For the year 2025, the average total social insurance contribution amounts to about 41.9 percent of the gross salary.
Statutory Health Insurance (GKV)
Health insurance is mandatory for everyone in Germany and ensures medical care in the event of illness. The general contribution rate to the GKV is 14.6 percent, with employer and employee each covering 7.3 percent. In addition, there is an individual supplementary contribution set by the insurance funds, which has been shared equally since 2019; for 2025, an average supplementary contribution of 2.5 percent is expected.
Statutory Nursing Care Insurance
Nursing care insurance is applicable in cases of need for care and is also a compulsory insurance. The contribution rate for nursing care insurance will be 3.6 percent from 2025 (except in Saxony), shared equally by employer and employee (1.8 percent each). Childless individuals aged 23 and over pay an additional 0.6 percent, which they cover alone.
Statutory Pension Insurance
Pension insurance provides financial security in old age as well as in cases of reduced earning capacity. The contribution rate to the general pension insurance remains stable at 18.6 percent, with employer and employee each paying 9.3 percent. These contributions secure valuable entitlements for your pension.
Statutory Unemployment Insurance
Unemployment insurance provides financial support in the event of unemployment. The contribution rate for this is 2.6 percent, also equally shared between employer and employee (1.3 percent each). This coverage is an important component of your social security.
Accident insurance: Protection against workplace and commuting accidents fully covered by the employer
An essential component of statutory protection is statutory accident insurance. The employer bears the full cost of the contributions for this. As an employee, you do not pay anything for it. Registration with the relevant trade association is done by the employer.
Statutory accident insurance provides cover in the event of workplace accidents, commuting accidents (accidents on the direct route to and from work), and occupational diseases. It covers, for example, the costs of medical treatment, rehabilitation, and, if necessary, pays injury benefits or an accident pension. In 2021, over 805,000 workplace accidents were registered, highlighting the importance of this insurance. The contribution rate for the employer depends on the company's risk category and the total wages of the insured employees. It's important to know that accidents during leisure time are not covered by statutory accident insurance. Here, private accident insurance can be beneficial.
Voluntary Benefits: How Employers Can Score Beyond the Basic Requirements
In addition to mandatory statutory insurance, many employers offer voluntary additional benefits to strengthen employee retention and increase their attractiveness as a company. These benefits are not legally required but provide significant added value. Among the most common voluntary insurance benefits are occupational pension schemes and corporate health insurance.
Occupational Pension Scheme (bAV): A Key Element for Your Future
The occupational pension scheme (bAV) is a popular additional benefit. Since 2002, employees have had the right to salary conversion, where parts of the gross salary are channelled into a bAV with tax and social security benefits. Since 2019, employers have been required to contribute 15 percent to new contracts if they save on social security contributions through salary conversion. For the year 2025, contributions of up to 644 euros per month can be paid into certain bAV implementation routes without tax, and up to 322 euros per month without social security contributions. There are various implementation routes such as direct insurance, pension funds or pension schemes. A well-designed bAV can significantly reduce your pension gap in retirement.
Corporate Health Insurance (bKV): More Health Protection as a Benefit
More and more employers are also offering corporate health insurance (bKV). This supplements the benefits of statutory health insurance and can, for example, cover the costs of dental prostheses, visual aids or alternative healing methods. Often, employees benefit from group tariffs without health checks and waiting times. Contributions for a bKV can be tax and social security free as a non-cash benefit up to an allowance of 50 euros per month. According to a survey, over 63 percent of employees would welcome a bKV offer.
Contribution Assessment Ceilings and Calculation Figures 2025: What You Need to Know
Contributions to social security are not levied on the entire gross income, but only up to certain maximum limits, the so-called contribution assessment ceilings (BBG). Income exceeding these limits is exempt from contributions. These limits are adjusted annually. The following important values apply for the year 2025:
BBG for health and nursing care insurance (nationwide): €5,512.50 monthly or €66,150 annually.
Compulsory insurance limit GKV (annual income limit, nationwide): €6,150 monthly or €73,800 annually. Those earning more can opt for private health insurance.
BBG for pension and unemployment insurance (nationwide): €8,050 monthly or €96,600 annually.
Our expert tip: Regularly check your payslip for the correct payment of social security contributions and compliance with the contribution assessment ceilings. If you have any questions, your HR department or an insurance expert can help. Knowing these limits is important for accurately assessing your net income and retirement planning. For example, the BBG of pension insurance also affects the maximum subsidised contributions to occupational pensions.
Practical Example: How Employer Contributions Affect Outcomes
To illustrate the significance of employer benefits, let's consider an example: An employee with a gross salary of 4,000 euros per month (below all contribution assessment ceilings for 2025, childless, over 23 years old, with statutory health insurance including an average additional contribution of 2.5 percent). The approximate monthly contributions by the employer (EM) and the employee (EE) for 2025 would be:
Health insurance (14.6% + 2.5% = 17.1%): Total 684 euros (EM: 342 euros, EE: 342 euros).
Long-term care insurance (3.6% + 0.6% for childless = 4.2% for EE, EM share 1.8%): EM: 72 euros, EE: 96 euros (1.8% + 0.6% surcharge).
Pension insurance (18.6%): Total 744 euros (EM: 372 euros, EE: 372 euros).
Unemployment insurance (2.6%): Total 104 euros (EM: 52 euros, EE: 52 euros).
In this example, the employer pays approximately 838 euros monthly solely for social security contributions. In addition, there are the full costs of statutory accident insurance and potentially contributions for levies (e.g., U1, U2, U3), which are not considered here but further increase the overall costs for the employer (levy U3 e.g. 0.06 percent). These figures demonstrate that the employer makes a significant contribution to your social security, which goes well beyond just the gross salary. It's worthwhile to understand the tax implications of pension expenses.
Expert Knowledge: Levies and Other Costs for the Employer
In addition to direct social insurance contributions and accident insurance, employers bear further costs that indirectly serve to protect employees. This includes various levy methods. Levy U1 ensures continued wage payments in the event of illness for companies with up to 30 employees, with health insurance funds able to reimburse between 40 and 80 percent of the gross wage. Levy U2 finances continued wage payments during maternity leave and is mandatory for all employers. Levy U3 (insolvency levy) secures employees' wages for up to three months in the event of an employer's insolvency; for example, this amounts to 0.06 percent.
Our expert tip: Even though these levies primarily represent costs for the employer, they provide you with important financial security as an employee. Understanding these mechanisms helps to comprehend the overall system of employer benefits. Find out about the options for group insurance that your employer may offer to take advantage of more favorable conditions. These additional costs for the employer often amount to another one to two percent of the gross wage.
Maximize your benefits: Recommendations for employees
To make the most out of the insurance paid by your employer and the additional benefits offered, you should take initiative. Utilize your employer's information resources, such as via the intranet or through the personnel department. Specifically inquire about opportunities for occupational retirement provision and check whether employer-financed occupational pension schemes or subsidies for salary conversion are offered. Even small monthly contributions can build up a substantial additional pension over many years.
If your employer offers company health insurance, find out about the exact benefits and whether they meet your needs. Often, the conditions are significantly better through group contracts than with individually concluded supplementary insurance policies. Also remember to make optimal use of capital-forming benefits, if offered, possibly also for your retirement provision. A proactive engagement with these topics can significantly improve your financial and health security.
Request an individual risk analysis now: Get your insurance situation checked for free and receive concrete suggestions for optimization.
More useful links
The Federal Ministry of Labour and Social Affairs (BMAS) provides comprehensive information on company pension schemes and the legal framework.
The German Pension Insurance offers important information and services specifically for employers and tax advisors regarding pension insurance.
The German Statutory Accident Insurance (DGUV) provides detailed information about statutory accident insurance, its responsibilities and benefits.
The Chamber of Industry and Commerce Munich offers an overview of the essential employer duties in labour law.
The Federal Ministry of Finance (BMF) explains the tax aspects of company pension schemes in the context of income tax.
FAQ
Which insurances are fully covered by my employer?
Your employer pays the contributions to the statutory accident insurance in full. The U2 levy (maternity protection) and U3 levy (insolvency allowance) are also usually covered entirely by the employer.
How do I find out which voluntary insurances my employer offers?
Ask your HR department or check your company's information materials (e.g. intranet, employee handbook). Such benefits are often actively communicated.
Is an occupational pension always worthwhile?
An occupational pension scheme is often very advantageous, especially when the employer provides a subsidy. By saving on taxes and social security contributions through salary conversion, an attractive additional pension can be built up. However, it is advisable to conduct an individual assessment.
What happens to my occupational pension when I change jobs?
Depending on the implementation method and the approval of the new employer, the balance or the contract can be transferred. Alternatively, the balance can remain with the former employer and be accessed upon retirement. Deferred compensation contributions are immediately vested.
Can I choose the provider of my statutory health insurance myself?
Yes, as a person with statutory health insurance, you are generally free to choose your health insurance provider. Your employer will then forward the contributions to the provider you have selected.
Are contributions to company health insurance tax-free?
Contributions to company health insurance can be tax-free and free from social insurance as a benefit in kind up to a monthly exemption limit of 50 euros. If the value of the benefits in kind exceeds this limit, the entire amount must be taxed.
