Germany takes the healthcare system seriously; therefore, as a resident/visitor there, you should also ensure you take all the necessary steps to be properly insured so you won’t have to worry about medical costs in the long run. Thousands of Health Insurance For Employees in Germany every year for employment purposes.
As a result, the salaries are high, the working conditions meet global standards, and there are many homeowner insurance cover roof leaks. And, if you get proper health insurance, you will be safe from medical bills in case of personal emergencies or any accident in the workplace.
Germany has a reputation for having one of the best and most comprehensive health care systems in the world, providing its residents with health, sick pay and long-term nursing care insurance coverage. Approximately 90% of the population is a mandatory or a voluntary member of the public health scheme while the rest have private health insurance.
In an increasingly global world, more and more companies are looking for qualified workers abroad. The Health Insurance For Employees in Germany for employers to find talent to add value to their teams. Mastering employee benefits in Germany can make it easier to attract and retain top talent.
When it comes to health insurance for employed foreigners in Germany, there’s a lot of information to be aware of. If you are living in Germany, you are required by law to be insured either privately or publicly. At a minimum, you need to be insured for benefits surrounding inpatient and outpatient treatment.
Who is entitled to employee benefits in Germany?
All full-time Health Insurance For Employees in Germany are entitled to benefits. Employees working four days per week, 30 hours per week, or more are considered full-time. Most benefits kick in after four weeks of continuous employment.
German employment laws guarantee an array of benefits to employees. If you want to attract top talent in Germany, you need to build an employee-centric company culture with a benefits package that supports the wellbeing of your employees.
Independent contractors and self-employed workers are not considered employees under German law. However, the distinction between an employee and an independent contractor can be complicated. Consult Remote’s Guide to Hiring in Germany for more detailed information.
Do I Need Health Insurance to Work in Germany?
Yes, you need health insurance to work in Germany, no matter the circumstances. Germany is quite strict when it comes to making sure all its residents are health insured, and since it has one of the best healthcare systems globally, having health insurance from Germany’s providers is definitely worthy.
Foreign workers are by default entitled to public health insurance according to German law. They can be eligible for private insurance providers if their salary exceeds the threshold of €66,600 per year as of 2023.
However, you will need Health Insurance For Employees in Germany to apply for a visa as a foreign worker. After arriving in Germany (with a German address), you can apply for public health insurance. You can use this online calculator to get prices and coverage.
Common benefits in Germany to attract top candidates
The mandatory benefits listed in the previous section are non-negotiable minimums. But if you want to attract top German candidates, you can’t afford to settle for minimum statutory benefits.
The German market is competitive, and offering attractive benefits to top-level candidates will help differentiate you from other potential employers.
Competitive salaries
Top candidates don’t want minimum pay. The average gross pay in German is €70,754. As in most countries, there is wide variation across job titles and industries. Factors such as experience and education figure heavily into salary determination.
Research your field to determine competitive salaries. There is an expectation in Germany that salaries will increase for employees as they become more experienced and spend more years with your company.
See also: How to calculate compensation for remote employees
Additional paid time off (PTO)
Although German statutory requirements give employees generous paid time off, most companies go above and beyond the basics. It’s very common for companies to provide more than the minimum. Many companies offer up to six weeks of paid time off per year to entice and retain employees.
You might also want to consider offering an unlimited PTO policy.
Company stock options or equity grants
Yes, you can offer stock options or equity grants to your global team as part of your total Health Insurance For Employees in Germany. This is a great low-cost benefit that can help you attract and retain top talent and foster a sense of belonging and shared vision among your employees.
Remote’s tax and legal experts can help you navigate international stock options so you do it the right way from the start.
Private pensions and supplemental retirement insurance
The pension system in Germany is a pay-as-you-go system. This means the funds workers deposit pay for people drawing on pensions right now. That also means that workers may see decreases in benefits in the future.
This model can cause stress and uncertainty for the people currently contributing. So, private and supplemental pensions are a very attractive benefit for German workers. They offer security the public pension does not.
Consider setting up a company pension or a retirement savings program for your workers to help them successfully plan for retirement.
Private and supplemental health insurance
You may offer private or supplemental insurance to employees earning more than €64,350 per year. The German public plan does offer a high level of care, but private insurance gives people access to more providers and other perks.
Basic dental care is included in the public health plan. However, you can offer supplemental dental insurance for your workers on the public plan. Supplemental insurance will give broader coverage across the board.
For workers who have Health Insurance For Employees in Germany, you can offer dental care as part of that coverage instead of a supplemental policy.
