Work terms

What is the annual compulsory insurance threshold in Germany?

The annual compulsory insurance threshold, called the Jahresarbeitsentgeltgrenze (JAEG) in German, is a legal gross-income test for employees. It helps determine whether an employee must remain in statutory health insurance or may become eligible for private health insurance (PKV) or voluntary statutory membership. The applicable amount is set by law and can change, so an old salary figure or online article may not be reliable.

Does an employer contribute to private health insurance in Germany?

An employer may contribute towards an eligible employee's private health insurance and private long-term-care insurance. In German, this is the Arbeitgeberzuschuss zur PKV, meaning the employer subsidy towards Private Krankenversicherung. The subsidy is not a general discount from the insurer and is not necessarily equal to half of every premium. It is subject to legal conditions and maximum limits, so the employee must budget for the balance.

What is sick pay insurance in Germany?

Sick pay insurance, known as Krankentagegeld in German, is income protection that can pay an agreed daily benefit when illness prevents an insured person from working, subject to the policy conditions. It is separate from health-insurance reimbursement: health insurance helps address covered treatment costs, while Krankentagegeld is intended to replace part of lost earnings. The contract sets important details such as the waiting period before payment, the daily amount, evidence of incapacity and when payments stop. Employees and self-employed people may have different income risks and statutory arrangements, so the same benefit amount will not suit everyone.