Health insurance — employee

Health insurance in Germany is a mandatory social security requirement for all employees. The current contribution rate stands at approximately 14.6% of gross salary, split equally between employer and employee, with each party paying around 7.3%. This system covers medical treatment, hospital care, prescription medications, preventive services, and dental care up to specified limits.

The regulatory framework governing employee health insurance is established under the Fifth Book of the German Social Code (Sozialgesetzbuch V – SGB V), administered by the Federal Ministry of Health and the German statutory health insurance funds (Krankenkassen). Employees earning below the annual income threshold of approximately €66,600 (as of 2024) are required to maintain statutory health insurance coverage unless they qualify for exemption.

Recent changes to the contribution structure took effect on 1 January 2024, introducing adjustments to the additional contribution rates that individual health insurance funds may levy. These rates now vary by fund, allowing employees to compare options and potentially switch providers annually.

Employers must register employees with a statutory health insurance fund within two weeks of employment commencement. Payroll teams are responsible for calculating the correct contribution amount based on gross salary, withholding the employee's portion, and remitting both employer and employee contributions to the selected insurance fund by the 15th of the following month. Failure to comply with registration and contribution deadlines can result in significant penalties. Employers must also maintain documentation of insurance status for all employees and provide proof of coverage upon request.